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 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.