Japan's electronics stores crack down on duty-free resales

[Gamernyc78]

Japan's electronics stores crack down on duty-free resales

Bic Camera's system records passport numbers to identify bulk purchasing

asia.nikkei.com

TOKYO -- Consumer electronics chains across Japan are working to thwart inbound tourists who abuse their tax-free status by making bulk purchases of high-value items to sell them later at markup.

Electronics chain Nojima has banned multiple tax-free purchases of the Nintendo Switch since March and added the PlayStation 5 to the list in April.

Tourists who come to Japan for short stays are eligible to buy items without paying the consumption tax if they complete the paperwork at stores. Items purchased for the purpose of reselling do not qualify for the tax break.

Japan has become attractive for resellers due to the weak yen. A PlayStation 5 can be bought for 66,980 yen ($425) at the suggested retail price with tax, and for even less without the 10% consumption tax. The console sells for $499.99 in the U.S. and 3,599 yuan ($496) in China.

Japanese tax authorities have imposed fines on stores for failing to identify and block tax-free purchases for resell purposes.

Edion was ordered to pay about 170 million yen, or $1.08 million, in back taxes for allowing unqualified tax-free purchases in four years through March 2022. Similarly, department store operator Isetan Mitsukoshi Holdings was hit with a 700 million-yen tax penalty for over three years through March 2022.

Japan's record-breaking tourist traffic has been a boon for retailers. But preventing resales of tax-free items has become a pressing challenge.

Most countries address bad-faith resellers by having international tourists pay taxes in full at the point of purchase, then apply for tax refunds at the time of departure. Japan looks to implement a similar refund scheme as early as fiscal 2025.

 

[Lynsen]

No wonder why the average weekly PS5 sales in Japan have decreased so much

 

[Gamernyc78]

Hmm maybe.

No wonder why the average weekly PS5 sales in Japan have decreased so much

 

[Evilnemesis8]

I think people were a bit in denial when it came to difference between the PS5 hardware vs software situation in Japan and trying to explain it with F2P/Digital and other factors.

What was particular telling was how many software releases didn't cause very large bumps in weekly PS5 hardware sales where you would expect it to be. This showed that the console sales were not totally organic.

 

[Etifilio]

I think people were a bit in denial when it came to difference between the PS5 hardware vs software situation in Japan and trying to explain it with F2P/Digital and other factors.

What was particular telling was how many software releases didn't cause very large bumps in weekly PS5 hardware sales where you would expect it to be. This showed that the console sales were not totally organic.

japanese consoles were being imported in masses to China, that's why the PS5 is selling "well" in Japan, but anyway i think it's a W cause these consoles are being used in the Asian region

 

[mibu no ookami]

I think people were a bit in denial when it came to difference between the PS5 hardware vs software situation in Japan and trying to explain it with F2P/Digital and other factors.

What was particular telling was how many software releases didn't cause very large bumps in weekly PS5 hardware sales where you would expect it to be. This showed that the console sales were not totally organic.

I think you're misunderstanding the story here. You could buy these items in Japan duty free and sell them in Japan for less than the total cost + tax.

that's what they're stopping here and even if they were being sold in china, you would still have software sales, they just wouldn't be present on famitsu, just as digital and f2p aren't captured by famitsu.

 

[anonpuffs]

Huh. Wonder where the ps5s were going

 

[Gamernyc78]

Huh. Wonder where the ps5s were going

Some ppl said to countries like Brazil.