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[Thick Thighs Save Lives]

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.

Source - Nikkei Asia

 

[Deft Beck]

Good. Fuck scalpers.

 

[ranmafan]

Very happy to see this. Was quite annoyed when I was in Tokyo a few months back for a concert and saw so many of these resellers with bags filled with multiple ps5 systems and accessories while shopping around Shinjuku.

 

[Jinzo Prime]

Very happy to see this. Was quite annoyed when I was in Tokyo a few months back for a concert and saw so many of these resellers with bags filled with multiple ps5 systems and accessories while shopping around Shinjuku.

That's just trashy, no wonder they're cracking down.

 

[Unknown?]

Why does a country that can create unlimited amounts of currency need taxes?

 

[Dr. Wilkinson]

Why does a country that can create unlimited amounts of currency need taxes?

Are you serious?

 

[StereoVsn]

I don’t get the PS5 resellers. Even if they could get a PS5 Disk for say $400, that’s a lot of hassle for under $100 profit, especially considering fees and such you have to pay for reseller platforms.

 

[Woopah]

Might explain some of the lower PS5 hardware sales we've seen, and may impact Switch as well.

 

[Red5]

Why does a country that can create unlimited amounts of currency need taxes?

Because printing money is a one way ticket to hyperinflation and currency devaluation?

 

[ManaByte]

Because printing money is a one way ticket to hyperinflation and currency devaluation?

Yea but them COVID payouts were sweet.

 

[Embearded]

Why does a country that can create unlimited amounts of currency need taxes?

You should try running for President.

 

[Black_Stride]

Their system was so backwards im surprised they are only noticing this shit doesnt work now.

How you sell something tax free to someone at point of sale???

 

[Skifi28]

Why does a country that can create unlimited amounts of currency need taxes?

You just solved taxes. Will you be solving world hunger next?

 

[Cyberpunkd]

I don’t get the PS5 resellers. Even if they could get a PS5 Disk for say $400, that’s a lot of hassle for under $100 profit, especially considering fees and such you have to pay for reseller platforms.

This. Plus there is a chance you will get flagged by customs at the arrival. You will not explain how 10 PS5 are for your personal use. They are merchandise , you will pay taxes and customs fees.
Who TF scalps Switch and PS5 nowadays?

 

[Unknown?]

Are you serious?

Because printing money is a one way ticket to hyperinflation and currency devaluation?

No, it was a joke. It's amusing how they are so concerned about their taxes but keep on printing regardless of if they collect them or not so it doesn't really even matter. Especially in Japan, where their monetary policy is print baby print! (speaking of currency devaluation the dollar has lost 97% of its value in 120 years)

 

[Dr. Wilkinson]

No, it was a joke. It's amusing how they are so concerned about their taxes but keep on printing regardless of if they collect them or not so it doesn't really even matter. Especially in Japan, where their monetary policy is print baby print! (speaking of currency devaluation the dollar has lost 97% of its value in 120 years)

Whatever stops weaboos and resellers from ruining what should be a fun hobby for other people.