On November 1, 2026, Japan will implement a new system for tax-exempt purchases by foreign travelers. Through this new procedure, travelers visiting Japan will no longer enjoy tax exemption right away as per the previous policies since taxes will be paid upfront, and the tourists will only get a refund when departing from Japan.
The new law is intended to curb exploitation of the tax-free scheme and to simplify some aspects of shopping for foreign travelers. The consumption tax in Japan is normally 10%, but qualifying tourists that meet the established requirements qualify for refund.
How the New Japanese Tax Refund System Works
Tourists making purchases must show their passports and provide their credit card or bank account details for the refund. The details of their transactions will be held by the Japanese Taxation Agency.
According to the law, travelers must leave Japan within 90 days of their purchases and before leaving must obtain the refund using the tax refund machines at airports or seaports.
If no further examination is required, then the refund will be issued. Conversely, tourists chosen for further inspections must go to the customs inspection area and pass over their items, and the customs officers will confirm whether their items receive the refund. Shopping bills will not be necessary for this process, although tourists should be still advised to collect their shopping bills.
The refunds can also be processed through Visit Japan Web in seven airports: Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose, and Naha. Once tourists have registered and received approval, they can use the QR code.
The director of the policy planning division of Japan’s Digital Agency urged the tourists to use the online platform before coming to Japan.
“Thus, we manage to digitalize the process from arrival to departure,” he said, adding that the use of Visit Japan Web makes tourists’ stay easier.
New laws have been introduced to prevent exploitation of tax-free shopping system
The new procedure has replaced the previous system which will function until October 31, 2026. The amendments have been made by Japanese authorities after cases of tax-free high-value goods being sold in local shops in the country have been revealed.
One of the authorities of NTA stated that “We discovered, as the reason for the change in the law, cases of significant purchases of luxury goods under the duty-free program that were later resold in Japan.”
In terms of the upcoming refund process, the minimum needed to benefit from tax exemption will remain at 5,000 yen. The previous cap at 500,000 yen for purchased goods will be removed. The requirement of having special bags for such purchases will also be cancelled.
The policy is aimed at increasing the number of purchases made by travelers while at the same time increasing the sales made in Japan.
In 2025, shopping made more than 25% of the total expenses made by international tourists in Japan (9.5 trillion yen).
The network of duty-free shops has increased significantly over the time. The number of shops operating under that regime has grown from over 4,000 in 2012 to about 64,000 in March of 2026.
With the coming into force of the new system in November, travelers planning on shopping while in Japan should be prepared to pay the consumption tax in advance and should obtain necessary documents for refund before leaving Japan.
