Japan Cashless Tax Refunds: Updated September 6, 2024.

 

Japan eyes cashless tax refunds to stem illicit resale by tourists

Article Source: https://mainichi.jp/english/articles/20240424/p2g/00m/0bu/003000c

Ideas:

On the surface it sounds like a good idea as some foreign groups takes advantage of the tax refund system, and buy hug amounts of tax free good and then go out and sell them. They probably have buyers before the go to Japan, buy things and then sell them to their buyers abusing the tax free system.

A good way, if possible, is have the foreign travelers show the products that they bought at the airport and then they can get a refund, either by credit card or cash. Of course that might be too time consuming for some, but its worth a try to reduce the tax refund cheating taking place. I am hesitant to say which groups to it, but they do it. 

Of course there are always going to be schemers or those who try to get around the legal system, and its universal, not just in Japan.

Cash refunds are good, but at times it can be a challenge. For example, when I wen to Yokohama in 2023, I got a tax refund at a store, but it took a very long for the sales clerks to check each item and then get the refund. It almost was not worth it, and I didn't try to get any more refunds after that.

It would be interesting to see how many foreign tourists get a refund and how many don't due the time it takes at the store to get a refund.

I don't know if any way to speed up the process in the stores in Japan, as the clerks need to check to be sure the products being bought are on the tax free list but maybe if they tagged the products or included them in the data system, and clerks can see the product automatically is tax refund products, then they don't have to verify each product as they check them, which they did with the products I bought.

If every foreign traveler is checked for their duty free products that can be very time consuming. For example, if 300 Chinese are traveling back to China, and the customs officials have to check each and every Chinese traveler, that can be very time consuming, and cause a lot frustration on both sides.

But how are customs officials  supposed to know who is carrying duty free products, if they don't carry the duty free bags or boxes separately, and not in their luggage. Maybe that it the trick some foreign travelers use, intentionally or unintentionally.

Of course they can check their passports, because at the stores the clerks are supposed to scan the foreign travelers passports into the tax free system, but that too can be very time consuming, and can be very frustrating for officials and foreign travelers.

All that is good and needed, but again, unfortunately, there are those who find ways around the system, as there are cheaters everywhere and not just in Japan.

If Japan devised a system, where passports are scanned at the stores, and then put into a system, and then scanned again at the airport, and if they bought a certain amount, at its flagged as a lot, then their luggage should be checked to see if they have the products still int the duty free packages. That might be a good start to eliminating some of the tax free cheaters in Japan.

Have a nice day