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Tipping in Japan is not mandatory. It could be said that, tipping is not a common practice in Japan.
In many cases, maybe most, tips may be politely refused.
If you do attempt to tip someone there may be some confusion. You can make this less confusing if you put it in an envelope or wrap in paper, and say (here is your tip) 'kore wa kimochi desu' (Everywhere) or 'Kore wa kokorozuke desu'(at Japanese-style inn only). Japanese never use the word (tip) 'chippu' in Japan.
Tipping at ryokan (Japanese-style inn)
Tipping is rarely seen in Japan; however, in Japanese-style inns (Ryokans) you can put a money bill (Y1000) in a small envelope and hand it to the person who you think deserves it. But it was old custom, remain at very high-category inns (over Y50000) only.
Here taking out a money bill from your pocket and handing it directly is considered rude.
When you stay in a hotel, things are quite different. They are trained to politely reciprocate your offer with an outright "No, thank you." which will be accompanied with a slight bow.
Tipping on a tour
There is need of tipping in Japan at everywhere and for everything.
Some old travel guides say you need to tip in Japan (for example, just like other parts of Southeast Asia), but it is not in the Japanese mind.