The Japanese government has just announced that it will be changing the rules governing duty-free purchases from 1 January 2026. Until now, thehe rules for refunding consumption tax on the products were disarmingly simple. The latter, which amounts to 10%, is immediately deducted from purchases. for foreign visitors, on presentation of their passport.
Very practical for travellers, this rule was nevertheless an open door to abuse. In recent years, the Japanese government found that many visitors used this rule to resell objects on their return to their country of origin. And often with copious profits...
This practice has been encouraged by a very weak yen for 18 months which makes Japanese food prices particularly attractive. On 1 January 2022, the euro was trading at 131 yen. On 27 January, it was trading at around 162 yen.after peaking at 174 yen on 6 July 2024. Last week's interest-rate hike by the Bank of Japan is giving the Japanese currency some colour.
Breaking up the resale at home of purchases made in Japan
Nonetheless, from 1 January 2026, Japan will bring the rules for purchasing duty-free goods into line with the practice of most countries in the rest of the world. Travellers will pay the price including consumption tax on that date and will not be able to claim a refund until they leave the country. Refunds will be made either in cash or by credit card.
On the other hand, the government wants to stimulate consumption. It should abolish the maximum purchase limit for consumer goods. It currently stands at ¥500,000 (around €3,100). The disappearance of this measure should further encourage the purchase of top-of-the-range sake and beauty products 'made in Japan'.
The weak yen has boosted spending by travellers to Japan. According to government statistics, shopping accounted for 26.5% of tourist spending in the country. Compared with 18% in the United StatesShopping accounts for a large proportion of tourist spending in Japan. They amounted to 26.5 % in 2023, compared with 18 % in the United States. And 15% for Ile-de-France (2018 figures).
In the third quarter of 2024, purchases of durable goods rose again in Japan, flirting with a 29% share of visitor spending. Some 60,000 shops have signed up to the duty-free schemeThis represents an increase of 5.4% between 2023 and 2024.
