A new system using digital yen (JPYC) is being considered for tax refunds for foreign tourists. Transfers could be completed within seconds, potentially speeding up the refund process at airports.
Following changes to the tax-free shopping system that took effect this month, foreign buyers will purchase goods at tax-inclusive rather than tax-exclusive prices, with the consumption tax they paid refunded at the airport once the goods are verified upon departure. The change is expected to reduce the burden on retailers and improve checkout efficiency. The manager of Liquor Mountain's Iwano store said that tax-free packaging would no longer be necessary, making checkout smoother.
The system is being revised against a backdrop of efforts to prevent illicit resales. Hamada, a division head at the National Tax Agency, explained that cases had emerged in which goods purchased tax-free were resold domestically, causing arrears to grow. In an inspection 3 years ago, the goods purchased by almost all of 57 buyers who had each spent more than ¥100 million could not be verified, raising the possibility that they had been resold domestically at tax-free prices.
As an application of digital currency, the government is considering the use of stablecoins, and a Japanese company is said to have developed a system for issuing tax refunds in digital yen (JPYC). Shun Mizuoka (水岡 駿), president of UPBOND, emphasized that transfers can be completed within seconds and that fees can be reduced. The company indicated its intention to promote JPYC among tourists in Tokyo, emphasizing speed and low cost.