Global Daily Tax News, Japan To Remove Limit For VAT-Free Tourist Refunds, (Dec 26, 2024)

The Japanese Government has announced plans to amend the nation's value-added tax refund scheme for tourists, in its newly approved 2025 tax reform plan.

The Government has proposed that the daily purchase limit (JPY500,000) for consumables will be abolished, as well as special packaging requirements. In addition, the distinction between general goods and consumables will be dropped.

Refunds will be available for a broader range of goods, with goods used in everyday life newly eligible. Items likely to be purchased for illegal purposes will be excluded, including gold bullion.

In addition, there will be a number of changes related to procedures under the regime, with effect from November 1, 2026.