What Is Japan’s New Refund-Based Tax-Free Shopping System? Starting November 2026

What Is the Refund-Based Tax-Free Shopping System?

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Under the new system, customers will first pay the full price of the item, including Japanese consumption tax.

After confirming with customs that the purchased item is being taken out of Japan at the time of departure, the customer will receive a refund equivalent to the consumption tax paid.

Unlike the current system, customers will no longer be able to purchase eligible products at the tax-free price immediately at the store.

This article is based on publicly available information from Japan’s National Tax Agency, Japan Tourism Agency, and other relevant authorities as of August 1, 2026. The details of the system may be subject to change.

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How Will the New System Differ from the Current System?

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Why Is the Tax-Free Shopping System Changing?

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One of the main reasons for the change is to prevent the misuse of Japan’s tax-free shopping system.

Under the current system, there have been cases in which tax-free items were purchased and then resold or otherwise used for commercial purposes within Japan.

Under the refund-based system, tax-free eligibility will only be confirmed after customs verifies that the purchased items are actually being taken out of the country.

This is expected to help ensure that the tax-free shopping system is used appropriately.

How the Refund-Based System Works

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STEP 1: Purchase the Item

First, select the product you wish to purchase in the same way as with any regular shopping transaction.
At the time of purchase, you will pay the full price, including Japanese consumption tax.

STEP 2: Complete Customs Confirmation When Leaving Japan

You must take the purchased item with you when leaving Japan and complete the required customs confirmation process.
Eligible items must be taken out of Japan within 90 days of the date of purchase.

STEP 3: Receive a Refund Equivalent to the Consumption Tax

Once customs confirms that the item is being taken out of Japan, the tax-free store or another designated party will refund an amount equivalent to the consumption tax paid.
The refund method will vary depending on the procedures explained at the time of purchase.

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Three Important Points to Know Before Receiving Your Refund

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1. Leave Japan Within 90 Days of Purchase You will not receive a refund unless you complete the required customs confirmation. 

2. Keep the Purchased Item Available for Inspection If requested by customs, you must present the purchased item for inspection. 

3. Complete Customs Confirmation Before Checking In Your Baggage Once your baggage has been checked in, customs may not be able to inspect the purchased item. To avoid any issues, we recommend arriving at the airport with plenty of time.

-A Helpful Tip If you have purchased a luxury watch or jewelry item, make sure to present your passport and the purchased item to customs before checking in your baggage. Customs may become crowded depending on the time of day, so arriving at the airport early will help ensure a smoother departure process.

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For Customers Planning to Purchase Luxury Watches or Jewelry

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Under the refund-based system, customers must initially pay the full price, including Japanese consumption tax. For example, when purchasing an item priced at ¥2,000,000 including tax, you will need to prepare the full amount at the time of purchase.

After completing the required procedures, you will receive a refund equivalent to the consumption tax paid. Therefore, customers planning to purchase high-value items such as luxury watches or jewelry should prepare a slightly larger budget than under the current system.

By considering not only your shopping expenses but also accommodation, transportation, and other travel costs in advance, you can enjoy shopping in Japan with greater peace of mind.

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Frequently Asked Questions

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Q. When will the refund-based tax-free shopping system begin? 

The new system will begin on November 1, 2026. It will be introduced as part of Japan’s FY2025 tax reform. 

Q. Can I purchase an item at the tax-free price? 

No. Under the refund-based system, you must first pay the full price, including Japanese consumption tax. An amount equivalent to the consumption tax will be refunded after customs confirms that the item is being taken out of Japan. 

Q. What do I need when leaving Japan? 

You must keep the tax-free eligible item available so that it can be presented if requested by customs. The purchased item must also be taken out of Japan within 90 days of the purchase date. 

Q. Do I need a receipt when leaving Japan? 

You are not necessarily required to carry or present a receipt or sales invoice during customs confirmation. However, customs may request it as part of an additional inspection, so we recommend keeping your receipt until you have completed the departure and refund procedures.

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Summary

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Prepare a Slightly Larger Budget From November 1, 2026, Japan’s tax-free shopping system will change from receiving an immediate tax exemption at the store to receiving a refund after customs confirmation. 

Travelers will be required to pay the full price, including Japanese consumption tax, at the time of purchase. 

After customs confirms that the purchased item has been taken out of Japan, an amount equivalent to the consumption tax paid will be refunded. Understanding the new system in advance will help you enjoy shopping in Japan with greater confidence. 

If you are planning to purchase high-value items such as luxury watches or jewelry, we recommend allowing some extra room in your travel and shopping budget. 

This article is based on publicly available information from Japan’s National Tax Agency, Japan Tourism Agency, and other relevant authorities as of August 1, 2026. The details of the system may be subject to change.

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