Statement on Preventing Misuse of the Tax-Exemption System

To keep Japan's consumption-tax exemption system transparent and properly administered, oneTaxFree publishes the policy below, in line with the "proper duty-free transactions" guidance from the National Tax Agency and the Ministry of Finance. We do not knowingly support misuse of the exemption system or resale of tax-exempt purchases.

Section 1Basic policy on preventing misuse

The system is designed to keep transactions that don't meet exemption requirements — purchases under fabricated buyer details, or exemptions claimed by someone other than an eligible non-resident — from slipping through at partner stores. Its design and operation follow Japan's Consumption Tax Act and related guidelines.

Section 2Identity verification and data accuracy

The in-store workflow includes the following checks:

• Passport capture and cross-check: the camera-based OCR reads both the passport's visual page and its MRZ (machine-readable zone), and checks the two against each other automatically. Where they don't match, or where the recorded residence status or landing date suggests the exemption requirements may not be met, staff are prompted to check the physical passport themselves.
• Automatic data capture against tampering: passport data and purchase details are linked automatically and stored as electronic records, reducing the risk of transcription errors or deliberate changes to price or quantity at the counter.

Note: identity verification relies on camera-based reading of the passport page and MRZ; we do not read passport IC chips. We do not query immigration databases directly — screening is limited to on-screen prompts based on the information printed in the passport itself.

Section 3Monitoring unusual transactions, and cooperating with authorities

To catch activity that runs against the spirit of the exemption system early, we maintain the following:

• Patterns that suggest resale — the same passport used for frequent purchases in a short window, or quantities well beyond personal use — trigger an on-screen alert at the register, prompting staff to take a closer look before completing the sale.
• Transaction records are kept electronically in a form that resists after-the-fact alteration. Where the National Tax Agency, customs, or another authority requests records or an investigation, we cooperate promptly within what the law permits.

Section 4Questions and reporting

If you come across anything that looks like misuse of tax-exemption transactions through this system or a partner store, please contact us below. Reports are handled in confidence.