This is the official guide to calculating the VAT refund in Japan. There are a LOT of information out there about what percentage you actually get back and I thought I would finally write a blog post so you don’t have to wonder where those extra dollars went. This is from my personal experience at Goyard Japan and I’ve recently visited a Louis Vuitton store in Sapporo that confirmed the same structure. So let’s dive in!

 

What is the VAT Refund in Japan?

10% is the standard VAT rate unless it’s consumable products (like food and beverages that you plan on taking back to your country), then it is 8%. Luxury goods like Dior, Goyard, and Louis Vuitton would be put in the 10% category.

 

What is the minimum spend to get a VAT refund in Japan?

You have to spend a minimum of 5,000 JPY. Also, you will need to have your passport present to show proof that you are a tourist.

 

How to Get the VAT refund?

This is very important! You must apply for the refund on the date of purchase during the shop operation hours. Do not decide to come back another day to get your VAT refund. Most VAT refund counters for luxury goods are located within the mall or on premise so I highly suggest after your purchase, to go get your VAT refund paperwork process immediately.

 

Global Blue VAT Refund Agency

Stores that participate in the VAT refund program most likely uses a third-party agency to process the VAT refund for them. This agency in return takes a percentage of your refund. Think of it as a convenience fee. From talking to Goyard and Louis Vuitton in Japan, they use Global Blue and the agency takes 1.55% of your TOTAL purchase amount.

Not every store uses Global Blue, but I know the below stores do. 

• Goyard
• Louis Vuitton
• Christian Dior
• Loewe
• Brunello Cucinelli
• Emporio Armani
• Moncler
• H&M
• Zara
• L’occitane
• Shiseido

If you are wondering about Chanel, I can’t really confirm this information yet. What I do know is that I saw a Chanel store in Isetan Shinjuku (the same mall that Goyard is in) and I know that Goyard uses Global Blue. I’ve also seen Isetan Shinjuku listed as a store on the Global Blue website so it makes me think that Global Blue is the VAT refund agency for the whole mall. I just can’t really confirm what the standalone Chanel stores uses. If anyone knows, message me and I’ll post it here!

 

Customs Counter on Your Way Out of Japan

Make sure you visit the customs counter on your flight out of Japan. They want to see the product along with the receipt to make sure you are taking it out of the country. So, make sure you don’t pack it in your check-in suitcase.

 

Japan VAT Refund Example

We are going to use my most recent purchase from Goyard to calculate the WHOLE process of my refund and what exactly is the percentage at the end I actually get back. 

Step 1: The Purchase

I purchased a Goyard St. Louis tote bag in December 2023 and it costs 196,000 JPY + 19,600 (10% tax)= 215,600 JPY total. For some reason, Goyard does not already include the VAT in their prices when you go in the store. 

Photo Credit: https://www.goyard.com/us_en/stlouipml.html#STLOUIPMLTY01CL03P

 

Step 2: The Total Amount Charge in USD

So, the total amount I had to charge on my credit card was 215,600 JPY which turns out to be $1,468.24 USD during the time of purchase.

 

Step 3: Going to the VAT Refund Counter

The Goyard that I went to was in a mall (Isetan Shinjuku). Goyard was on the 4th floor while the VAT refund counter was on the 6th floor. Again, I highly suggest you go get your refund immediately after your purchase. To get the refund, the processing has to be done on the same day! It was quite easy and took no more than 5 minutes. 

 

Step 4: Calculating the VAT Refund in Japan

As mentioned above, Global Blue takes a 1.55% convenience fee for processing the VAT refund paperwork for you. So, my initial price of the Goyard bag was 196,000 x 1.55%= 3,038 JPY (~$20.69 USD). Global Blue will deduct this amount from your VAT refund. 19,600 JPY – 3,038 JPY= 16,562 JPY is left.

 

Step 5: Scheme Fee for Visa and Mastercard Transactions

If you are using a Visa or Mastercard, Global Blue charges a “scheme fee” for using these credit cards. It is 1 EUR and at the time of purchase, converts to 157 JPY.

 

Step 6: Currency Conversion Fee

Global Blue also charges a currency conversion fee of 3-5% that takes place if the currency purchased is different from your currency refund. In my case, my purchase was in Japanese Yen and my refund will be in US Dollars. In this Goyard example, they charged 5% of the 16,562 JPY which equals to 828.10 JPY.

 

Step 7: Final VAT Refund Calculation

• Refund Amount: 16,562 JPY
• Scheme Fee: 157 JPY  
• Currency Conversion Fee Applied: 16,562 x 5% = 828.10 JPY
• Amount to Convert: 16,562 – 157 – 828.10= 15,576.9 JPY
• Conversion Rate at Time of Purchase: 0.0065860344484461 (JPY to USD)
• Payment Amount: 15,576.9 JPY x 0.0065860344484461 =  $102.59 USD

Step 8: What is the Final Percentage of the VAT Refund in Japan?

So, after doing all that math, the final percentage based on my purchase at Goyard Japan has come out to be…

$102.59 ÷ $1,468.24 x 100 = 6.99 % VAT Refund for Credit Cards

 

Conclusion

In conclusion, if you are going to Japan to buy luxury goods and think you are getting a 10% VAT refund back, you are NOT. With that being said, the USD is really strong against the JPY right now so you would still be getting a great deal versus if you were to buy in the States. Just when you are doing your calculations, I would just use 7% as your baseline VAT refund amount for Japan if you are going to use a credit card. Again, you potentially could get more VAT back if you want your refund in cash, but most people don’t want to have that much cash in another currency.