Japan’s Tax-Free Shopping Reform Explained: Changes, Refund System, How to Use It, and Key Points

The most significant change is the switch to a refund system, under which the tax is refunded afterward.
Until now, shoppers could purchase goods at tax-free stores for a price excluding consumption tax. From November 2026, however, they will pay the tax-inclusive price at checkout.
The amount equivalent to the consumption tax will be refunded by a designated method after customs confirms at departure that the tax-free purchases are being taken out of Japan.
For international visitors, this means receiving the savings back through a later procedure rather than paying less at the time of purchase.
It will therefore be easier to plan your travel budget if you treat the refund as money you will receive later.
Specific refund methods and timing will vary by tax-free store or contracted refund provider, so check when making your purchase.

Under the current system, stores must place tax-free consumables such as food, beverages, cosmetics, and medicines in special sealed packaging.
This is mainly intended to prevent their use or consumption while in Japan, but it also inconveniences travelers by requiring them to carry the specially packaged goods.
After the reform, special in-store packaging will be eliminated, which is also expected to simplify store operations.
However, the elimination of special packaging does not mean that consumables may be freely used or consumed in Japan.
To receive a refund, tax-free purchases must be taken out of the country.

Under the current system, clothing, appliances, watches, and jewelry are classified as general goods, while food, cosmetics, medicines, and household items are classified as consumables. Different tax-free requirements apply to each category.
If a single receipt contains both types of goods, the amounts and tax-free procedures must be managed by category, creating an administrative burden for stores.
The new system eliminates these product categories and determines eligibility for tax exemption according to the same standard: the total purchase amount.
International travelers will no longer have to deal with different tax-free treatment depending on the product, simplifying explanations and paperwork at checkout.
This should make shopping more straightforward.

Consumables currently have a tax-exclusive purchase limit of ¥500,000 per eligible tax-free shopper, per store, per day.
Purchases exceeding this limit are not tax-exempt, which has often been an obstacle for international travelers who want to buy premium cosmetics or purchase products in bulk.
With the switch to the refund system, the ¥500,000 limit will be eliminated, providing greater flexibility when shopping.
However, this does not mean that tax exemption is unlimited.
For eligible goods priced at ¥1,000,000 or more per item before tax, additional rules require tax-free stores to record detailed information. These rules are explained later.
The minimum eligible purchase amount will remain ¥5,000 before tax. However, as noted above, the requirement will be met when the combined total reaches at least ¥5,000, regardless of product category.

Travelers were previously allowed under certain conditions to arrange international shipping themselves for tax-free goods they had purchased, but this separate-shipping option was abolished on March 31, 2025.
However, direct overseas shipping from the store will remain available after the system changes in November 2026.
Although separate shipping and direct shipping may sound similar, they are different systems.

Separate shipping—not permitted: The traveler does not personally carry the purchased goods when leaving Japan, but instead sends them overseas by international mail or another method.

Direct shipping—permitted: The traveler signs a shipping contract at the tax-free store and hands the goods over to the carrier there, allowing the store to ship them directly overseas.

From November 2026, direct shipping will be treated as an export tax exemption under Article 7 of the Consumption Tax Act, rather than as a tax-free sale under the refund system.
Therefore, customs confirmation at departure will not be required, nor will the procedures for tax-free sales under the Export Tax-Free Shop System.

The current system provides tax exemption at the time of purchase. Shoppers present their passports at checkout and pay a price from which consumption tax has already been deducted.
While this is easy for international travelers to understand, granting the exemption at purchase has created various operational challenges.
One issue involves suspected cases in which large quantities or high-value goods purchased tax-free were not taken overseas but were instead sold or diverted within Japan.
Another problem has been that attempts to collect the amount equivalent to consumption tax from travelers who did not possess the goods at departure often resulted in unpaid balances.
Such abuse also undermines the fairness of the tax-free system.

In response to this abuse, the government announced plans to review the system in its FY2024 Tax Reform Outline.
The details were finalized in the FY2025 Tax Reform Outline, with consideration given to improving convenience for international travelers and reducing the administrative burden on tax-free stores.
A major goal of the reform is to prevent abuse and ensure proper operation by requiring customs confirmation at departure that tax-free purchases are actually being taken out of Japan.
The digitization of tax-free procedures is also moving forward.
Travelers may feel that the new system adds inconvenience, but its purpose is to make the overall system sound and preserve tax-free shopping into the future.
The timeline from finalization to implementation is as follows.

Only people who meet the following conditions are eligible.
The basic requirements are largely unchanged from the current system, although the new system will revise certain methods for verifying eligibility and handling purchase records.

Not all foreign nationals are eligible. Eligibility is limited to nonresidents who meet requirements related to their residence status and other conditions.
For example, people staying in Japan under a work-related residence status are generally ineligible for tax-free purchases.

The current requirement limiting eligible goods to those ordinarily used in daily life will be eliminated.
Under the new system, goods will be eligible regardless of their intended use, except for items with a high risk of abuse, such as gold and platinum bullion and gold and platinum coins, as well as items already exempt from consumption tax.
A wide range of products will qualify, including food, medicines, appliances, bags, and watches.
However, if you purchase so much that you cannot personally take the goods out of Japan at departure, customs will be unable to confirm them.
Tax-free sales may be offered by various types of businesses, including department stores, drugstores, and electronics retailers, provided they are authorized as Export Tax-Free Shops.

For individual tax-free items priced at ¥1,000,000 or more before tax, stores must record detailed information that identifies the item as part of the purchase record.
This may include a combination of information appropriate to the product, such as its name, brand, model number, distinctive color or shape, and whether it has a certificate of authenticity or warranty. A serial number is also mandatory for products that have one.
This measure helps customs reliably verify high-value tax-free goods at departure and prevents fraud such as presenting an item different from the one actually purchased.
Travelers do not need to submit a special application, but those planning high-value purchases should be aware that checkout verification may take longer than usual.
The ¥1,000,000 threshold applies to the tax-exclusive price of each individual eligible item, not the total value of a single purchase.
For example, if you purchase one item for ¥800,000 before tax and another for ¥300,000 before tax, the combined total is ¥1,100,000, but neither item is subject to the additional registration requirement.

Typical cases that are ineligible under the new system are listed below.
To avoid problems, keep tax-free purchases under your control and take them out of Japan yourself.

When purchasing goods at a tax-free store, pay the tax-inclusive price at checkout.
Present your passport to the cashier so that your eligibility for tax-free shopping can be verified. Japanese nationals temporarily returning to Japan will also need a My Number Card, certificate of residence abroad, or other documentation.
As noted above, the total eligible purchase must be at least ¥5,000 before tax. A tax-inclusive total of ¥5,000 does not meet the requirement.
For products priced at around ¥5,000 including tax, check before paying whether the price before tax meets the requirement.
You will likely select from the payment methods offered by the store, such as cash or credit card.
At this point, the tax exemption has not yet become valid.

At checkout, the tax-free store submits purchase record information to the National Tax Agency’s tax-free sales management system.
The record includes passport details and information about the purchaser and goods. It is used for customs confirmation at departure.
Importantly, there is no single nationwide method for refund procedures, registering the refund destination, or refund timing. These details vary by tax-free store and refund provider.
If the store provides refund instructions, such as accessing a dedicated website through a QR code, follow those instructions.

When leaving Japan, scan your passport at a tax-free procedure terminal, such as a kiosk or electronic terminal, at the airport or seaport to receive customs confirmation.
The process is generally self-service, but a customs officer may ask to inspect the goods if necessary. Keep eligible items readily accessible to make the process smoother.
Some terminals support multiple languages. If you are unsure how to operate one, ask airport staff for assistance.
Once customs confirms that the eligible goods are being taken out of Japan, the tax-free sale becomes valid and you can receive a refund equivalent to the consumption tax.

Once customs confirms that the goods are being taken out of Japan, the tax-free store or its contracted refund provider will refund the amount equivalent to consumption tax.
Timing varies by method. You may receive cash at the departure airport, or the refund may later be credited to a bank account or credit card.
Check the details with the store or refund provider.
For example, if you shop at Stores A, B, and C, the refunds may arrive at different times because each store uses a different method.

Tax-free stores create purchase records using passport and other information, so you must present your passport when buying goods.
Depending on your status, you may also need additional supporting documents, as in the case of Japanese nationals temporarily returning to Japan.
You may also present passport information in stores using the QR code provided by Visit Japan Web.
If you plan to use tax-free shopping, keep your passport and any required documents readily available.

Tax exemption is based on the purchaser personally taking the goods out of Japan.
One person cannot combine purchases for friends or family and treat the total as that person’s tax-free purchase.
Purchases made at a third party’s request or for resale are not eligible.
The requirements are also not met if someone other than the purchaser takes the goods out of Japan.
When shopping on a group trip, each person should complete a separate transaction so it is clear who purchased each item.

At the departure airport, you must use a kiosk or electronic terminal to complete confirmation procedures before checking your baggage with the airline.
If no inspection is required, the process is complete. If an inspection is required, a customs officer will check the goods.
In other words, if you check your tax-free purchases first, you cannot complete the procedure or receive a consumption tax refund.
Whenever possible, keep tax-free purchases together in a carry-on bag and visit the tax-free procedure area first.

As explained above, eligible travelers must receive customs confirmation when leaving Japan under the new system.
Allow more time than usual at the airport so you can complete the customs procedures without rushing.
Airports may be crowded during peak periods when many international visitors travel, so keep this in mind when planning your schedule.

Under the refund system, customs must confirm at departure that eligible goods are being taken out of Japan within 90 days of purchase.
If you leave after 90 days, the tax exemption will not apply and you cannot receive a refund equivalent to the consumption tax.
The 90-day period starts with the day after purchase as Day 1 and ends on Day 90.
For example, if you make a purchase on November 1, the deadline is January 30.
Each purchase has its own 90-day deadline, so travelers staying in Japan for an extended period should take particular care.

Because the tax-free system will change substantially in November 2026, consult official resources if anything is unclear.
For example, the Japan Tourism Agency provides materials outlining the refund system, specific procedures, and precautions.
Useful official websites are listed below.