Japan’s Tax-Free Shopping Reform from November 2026: Key Changes, the Refund System, How It Works, and What to Know

The most significant change under the new system is the shift to the “Refund Method,” under which the consumption tax is refunded after departure procedures are completed.
Under the current system, international visitors can purchase eligible goods at tax-free shops without paying consumption tax. From November 1, 2026, however, they will pay the tax-inclusive price at the time of purchase.
The amount equivalent to the consumption tax will be refunded through a designated method after customs confirms upon departure that the tax-free goods are being taken out of Japan.
For international visitors, this means that instead of enjoying the tax savings immediately at the time of purchase, they will pay the full price first and receive the tax amount back later after completing the required procedures. It is therefore a good idea to plan your travel budget with the understanding that the refund will be received later.
The specific refund method and timing will vary depending on the tax-free shop or refund service provider, so be sure to check the details when making your purchase.

Under the current system, tax-free shops are required to place consumable goods such as food, beverages, cosmetics, and medicines in special sealed packaging. This is mainly intended to prevent the goods from being used or consumed while in Japan, but the requirement can also be inconvenient for travelers, who must keep the items in their sealed packaging.
Under the new system, the special packaging requirement will be abolished, which is also expected to simplify procedures for tax-free shops.
However, the abolition of special packaging does not mean that consumable goods can be freely used or consumed while in Japan. To receive a refund, tax-free goods must still be taken out of Japan.

Under the current system, clothing, home appliances, watches, and jewelry are classified as “general goods,” while food, cosmetics, medicines, and everyday household items are classified as “consumable goods.” Different tax-free requirements apply to each category.
When both types of goods are included in the same purchase, the purchase amounts and tax-free procedures must be managed separately by category, creating an administrative burden for tax-free shops.
Under the new system, these product categories will be abolished, and eligibility for tax-free shopping will be determined using the same criteria based on the total purchase amount.
For international travelers, this means that tax-free treatment will no longer differ depending on the type of product, simplifying explanations and procedures at checkout. This should make tax-free shopping more straightforward and easier to understand.

Under the current system, consumable goods are subject to a tax-exclusive purchase limit of ¥500,000 per eligible tax-free shopper, per tax-free shop, per day. Purchases exceeding this limit are not eligible for tax exemption, which can be a drawback for international visitors looking to buy premium cosmetics or make bulk purchases.
Under the new Refund Method, the ¥500,000 purchase limit will be abolished, giving travelers greater flexibility when shopping. However, this does not mean that there will be no limits or additional requirements for tax-free shopping.
For tax-free goods with a pre-tax price of ¥1,000,000 or more per item, additional rules apply, including a requirement for tax-free shops to record detailed information about the goods. These rules are explained in more detail later in this article.
The minimum purchase amount for tax-free shopping will remain unchanged at ¥5,000 before tax. However, as noted above, purchases can be combined across product categories, and the requirement is met as long as the total purchase amount is at least ¥5,000 before tax.

Travelers were previously allowed, under certain conditions, to ship tax-free goods overseas themselves, but this “separate shipping” option was abolished on March 31, 2025.
By contrast, “direct shipping,” in which a tax-free shop ships purchased goods directly overseas, will remain available after the new system takes effect in November 2026.
Although separate shipping and direct shipping may sound similar, they are different systems, so it is important to understand the distinction.

Separate Shipping (Not Permitted): The traveler does not personally carry the purchased goods out of Japan, but instead ships them overseas by international mail or another method.

Direct Shipping (Permitted): The traveler enters into a shipping contract at the tax-free shop and hands the purchased goods over to the carrier there, allowing the goods to be shipped directly overseas.

From November 2026, direct shipping will be treated as an export transaction exempt from consumption tax under Article 7 of the Consumption Tax Act, rather than as a tax-free sale under the Refund Method.
As a result, customs confirmation that the goods are being taken out of Japan will not be required upon departure, nor will the tax-free sales procedures under the Tax-Free Shopping System apply.

Under the current system, international visitors can receive a consumption tax exemption at the time of purchase by presenting their passports at checkout, allowing them to purchase eligible goods without paying consumption tax.
While this system is simple and easy for international travelers to understand, granting the tax exemption at the time of purchase has created a number of operational challenges. One such issue is suspected cases in which large quantities or high-value goods purchased tax-free were not taken out of Japan but instead resold or diverted within the country.
Another problem is that when authorities attempted to collect the amount equivalent to the exempted consumption tax from travelers who no longer had the goods in their possession upon departure, many of these amounts went unpaid. Such abuse has also undermined the fairness of Japan’s tax-free shopping system.

In response to these cases of suspected abuse, the government announced plans to review the system in its FY2024 Tax Reform Outline.
The details of the reform were then finalized in the FY2025 Tax Reform Outline, taking into account the need to improve convenience for international travelers and reduce the administrative burden on tax-free shops.
A major aim of the reform is to prevent abuse and ensure the proper operation of the system by requiring customs confirmation upon departure that tax-free goods are actually being taken out of Japan. At the same time, the digitization of tax-free procedures is also moving forward.
From a traveler’s perspective, the new system may seem more complicated, but the changes are intended to ensure the integrity and long-term sustainability of Japan’s tax-free shopping system.
The timeline from finalization of the reform to its implementation is as follows.

Only travelers who meet the following conditions are eligible for tax-free shopping.
The basic eligibility requirements remain largely unchanged from the current system, although some changes will be made under the new system to how eligibility is verified and purchase information is handled.

Not all foreign nationals are eligible for tax-free shopping. Eligibility is limited to nonresidents who meet certain requirements, including those related to their status of residence.
For example, people staying in Japan under a work-related status of residence are generally not eligible for tax-free shopping.

The current requirement limiting eligible goods to items “ordinarily used in daily life” will be abolished.
Under the new system, goods will generally be eligible regardless of their intended use, except for items considered to carry a high risk of abuse, such as gold and platinum bullion and gold and platinum coins, as well as goods that are already exempt from consumption tax. A wide range of products will therefore be eligible for tax-free shopping, including food, medicines, home appliances, bags, and watches.
However, be careful when purchasing large quantities. If you are unable to personally take the goods out of Japan upon departure, customs will not be able to confirm that they are being taken out of the country.
Tax-free sales can be offered by a wide variety of businesses, including department stores, drugstores, and electronics retailers, as long as the store is authorized to offer tax-free shopping.

For individual tax-free goods priced at ¥1,000,000 or more before tax, tax-free shops are required to record detailed information that can identify each item as part of the purchase record.
Depending on the type of product, this may include a combination of information such as the product name, brand, model number, distinctive features such as color or shape, and whether it comes with a certificate of authenticity or warranty. If the product has a serial number, the serial number must also be recorded.
This requirement is intended to ensure that customs can reliably verify high-value tax-free goods upon departure and to prevent fraud, such as presenting a different item from the one actually purchased.
No special application is required from travelers. However, if you plan to make a high-value purchase, keep in mind that the verification process at checkout may take longer than usual.
The ¥1,000,000 threshold applies to the pre-tax price of each individual eligible item, not the total amount 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 recordkeeping requirement.

The following are some of the main cases in which tax exemption does not apply under the new system.
To avoid problems, keep in mind that tax-free goods should remain in your possession and be taken out of Japan by you personally.

When purchasing goods at a tax-free shop, you will pay the tax-inclusive price at checkout.
Present your passport to the cashier to verify your eligibility for tax-free shopping. Japanese nationals temporarily returning to Japan will also need to present additional documentation, such as a My Number Card or a certificate of residence abroad.
As noted above, the total purchase amount must be at least ¥5,000 before tax to qualify for tax-free shopping. A tax-inclusive total of ¥5,000 does not meet this requirement. If your purchase comes to around ¥5,000 including tax, be sure to check before paying whether the pre-tax total meets the minimum requirement.
Payment is expected to be made using one of the methods offered by the shop, such as cash or credit card. Keep in mind that at this stage, the tax exemption has not yet been finalized.

At checkout, the tax-free shop submits purchase record information to the National Tax Agency’s tax-free sales management system.
The purchase record includes passport details and information about the purchaser and the goods purchased, and is used for customs confirmation upon departure.
Importantly, there is no single nationwide method for how refunds are issued, how refund details are registered, or when refunds are processed. These procedures vary depending on the tax-free shop or refund service provider.
If the shop provides instructions related to your refund, such as accessing a dedicated website via a QR code, be sure to follow them.

When leaving Japan, scan your passport at a tax-free procedure terminal, such as a kiosk or other electronic terminal, at the airport or seaport to complete customs confirmation.
The process is generally self-service, but a customs officer may ask you to present the goods for inspection if necessary. Keep your tax-free goods readily accessible to help the process go smoothly.
Some terminals offer multilingual support. If you are unsure how to use the terminal, ask staff at the airport or seaport for assistance.
Once customs confirms that your tax-free goods are being taken out of Japan, the tax-free sale is finalized and you become eligible to receive a refund equivalent to the consumption tax.

Once customs confirms that the goods are being taken out of Japan, you will receive a refund equivalent to the consumption tax from the tax-free shop or its contracted refund service provider.
The timing of the refund varies depending on the method used. In some cases, you may receive the refund in cash at the departure airport, while in others, it may be credited to your bank account or credit card at a later date.
Be sure to check the details with the shop where you made your purchase or the refund service provider.
For example, if you make purchases at Stores A, B, and C, the refunds may be processed at different times depending on the refund method used by each store.

Tax-free shops create purchase records based on passport and other required information, so you will need to present your passport when making a purchase.
Depending on your eligibility status, additional supporting documents may also be required, such as for Japanese nationals temporarily returning to Japan.
You can also present your passport information at tax-free shops using a QR code generated through Visit Japan Web.
If you plan to shop tax-free, keep your passport and any other required documents readily available.

Tax-free shopping is based on the principle that the purchaser personally takes the goods out of Japan.
One person cannot purchase goods on behalf of friends or family members and combine the amounts as a single tax-free purchase. Purchases made at the request of a third party or for resale are also not eligible for tax exemption.
The requirements for tax exemption are also not met if someone other than the purchaser takes the goods out of Japan.
When shopping as part of a group, make sure each traveler completes their own tax-free procedures so that it is clear which goods were purchased by whom.

At the departure airport, you must complete the customs confirmation procedure at a kiosk or other electronic terminal before checking your baggage with the airline.
If no inspection is required, the procedure is complete. If an inspection is required, a customs officer will ask you to present the goods for verification.
In other words, if you check your baggage containing tax-free purchases before completing customs confirmation, you will not be able to complete the procedure and will therefore not receive your consumption tax refund.
Whenever possible, keep your tax-free purchases together in your carry-on baggage and make sure to complete the tax-free procedure before checking any baggage containing tax-free goods.

s explained above, under the new system, eligible travelers must receive customs confirmation that their tax-free goods are being taken out of Japan when they depart.
To complete the customs procedures without rushing, plan to arrive at the airport earlier than usual on your departure day.
Airports may be particularly crowded during peak travel periods when large numbers of international visitors are departing, so be sure to allow plenty of extra time when planning your schedule.

Under the Refund Method, customs must confirm upon departure that your tax-free goods are being taken out of Japan within the required 90-day period.
If you leave Japan after the 90-day deadline, you will no longer qualify for tax exemption and will not receive a refund equivalent to the consumption tax.
The 90-day period is counted from the day after the purchase, which is considered Day 1, through Day 90. For example, if you make a purchase on November 1, the deadline is January 30.
Because the 90-day deadline is calculated separately for each purchase based on the purchase date, travelers staying in Japan for an extended period should pay particular attention to when they shop.

As Japan’s tax-free shopping system will change significantly in November 2026, be sure to check official resources if you have any questions or are unsure about the new procedures.
For example, the Japan Tourism Agency provides materials explaining the Refund Method, specific procedures, and important points to keep in mind.
Below are some useful official websites for further information.