When speaking of Duty-free shops in Japan, there is the concept of “Duty-free” and “Tax-free.” The company engages in the “Tax-free” business.
|How to Engage in Business
|Obtain permission from the tax chief having jurisdiction over the taxpayer for each store
|Obtain permission of bonded area as a bonded warehouse under the Customs Act
|Departing persons (Japanese, foreigners)
|Consumption tax (value-added tax)
|Exemption of various taxes, in addition to consumption tax (value-added tax)
|Articles supplied for daily life (general articles, consumables)
|Goods, cigarettes, alcohol, and other products imposed with duty
|Delivery of Goods
|Receipt of goods is available when purchasing at stores
|Receipts are available at the delivery place for Duty-free products at airports or ports, after going through the departure process
|Number of Stores
|55,134 (as of September 2020)
|43（as of July 2017 ）
|Type of Store
|Market tax exemption stores, such as drug stores
|Airport Duty-free Shop
|City Duty-free Shop
Goods provided for use in daily life (general goods, consumables)
Goods that have been explicitly purchased for business or for sale by a non-resident are not exempted from tax.
Source:Drafted by this company based on the website of Japan Tourism Agency (https://www.mlit.go.jp/kankocho/tax-free/about.html)
(FN1) Source: Website of Japan Tourism Agency（ https://www.mlit.go.jp/kankocho/topics02_000196.html ）
(FN2) Only goods supplied for daily use are exempt, thus, purchasing for business or for sale do not qualify for exemption.