Japan To Overhaul Tax-free Shopping For Foreign Visitors To Curb Resale

TOKYO, Oct 22 (NNN-Kyodo) -- Japan will overhaul its tax-free shopping system for foreign visitors on Nov 1, requiring them to pay consumption tax upfront and claim refunds upon departure in a bid to curb abuse by travellers who resell goods before leaving the country, Kyodo News reported.

Foreign visitors can currently purchase goods tax-free at stores.

Under the new refund system, they will scan their passports at dedicated terminals at airports and ports to receive refunds in cash or on their credit cards upon departure.

Travellers flagged for additional checks may be asked to present their purchases for inspection. Major airports will also offer smartphone-based procedures to help ease congestion.

--NNN-KYODO