Tax-Free Shopping in Japan has been a popular perk for international tourists, allowing them to enjoy shopping without paying the 10% consumption tax. Currently, visitors can get the tax waived directly at the store by showing their passport.
However, starting in November 2026, this system will change. Tourists will pay the full price at checkout, including tax, and then apply for a refund at the airport before leaving Japan. This change is part of efforts to prevent tax abuse and make the process more transparent.
This article will explain what’s changing, how it affects foreign tourists and foreign residents in Japan, and what you need to know before and after the new rules take effect.
For a detailed overview of Japan’s tax system—including consumption tax and other Common Taxes in Daily Life, please refer to the following guide.
Table of Contents
Chapter 1: How Japan’s Tax-Free Shopping System Works Today
Japan’s tax-free shopping system currently follows what’s called the “immediate exemption method.” This means that eligible foreign tourists don’t have to pay the 10% consumption tax when making purchases.
When shopping at participating stores, visitors simply show their passport at checkout. If the purchase meets the conditions, the store applies the tax exemption and the customer only pays the pre-tax price.
Current Tax-Free Shopping Process:
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Shop at a store that offers tax-free shopping
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Show your passport at checkout
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The store checks your eligibility and processes the purchase as tax-free
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Pay the price before tax
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The store attaches a purchase record form to your passport
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At the airport, show your purchase record form to customs before departure
This system has made shopping in Japan convenient for tourists, but it has also led to concerns about misuse, particularly by long-term visitors or people attempting to resell goods. These issues are one of the reasons why the system is set to change in November 2026.
Chapter 2: The New System (Starting November 2026)
Starting in November 2026, Japan will introduce a new “refund system”, replacing the current “immediate exemption method.” Under this system, foreign tourists will pay the full price, including tax, at the store, and will later receive a refund after confirming their eligibility at designated locations, such as the airport.
New Tax-Free Shopping Process:
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Present your passport at the retail store for eligibility verification
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Purchase items at the full price, including tax
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The store shares the purchase record with the National Tax Agency’s tax-free sales management system
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Within 90 days of purchase, the tax-free shopper must leave Japan
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At the airport, customs will verify the purchase and may conduct further checks if necessary
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The details verified by customs will be cross-referenced with the data provided by the store
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If everything matches, the tax exemption is confirmed, and the refund is processed for the eligible shopper
Chapter 3: Other Revision: Range of Tax-Free Items
With the new tax-free system starting in November 2026, there will be changes in the range of products eligible for tax-free shopping. Below is a comparison of the current categories of tax-free items and their details. Special packaging for consumables means that these items must be sealed in a specific way to ensure they remain unopened before departure.
| Category | Tax-Free Price Range | Eligible Items | Special Packaging Required |
|---|---|---|---|
|
General Goods |
5,000 yen and up |
Items for daily living |
No |
|
Consumables |
5,000 yen to 500,000 yen |
Yes |
From November 2026, the categories, purchase limits, usage requirements, and special packaging for tax-free items will be abolished.
Chapter 4: Enforcement Date
The new system will be implemented starting November 1, 2026. From this date, all tax-free transactions at participating stores, including the sale of tax-free eligible items, will follow the new procedures.
Chapter 5: Conclusion
Starting November 2026, Japan will shift to a refund-based tax-free shopping system for foreign visitors. This change, moving away from the immediate exemption method, aims to improve transparency and reduce fraud. While the process may require a bit more effort, it will provide a more efficient and controlled shopping experience. Foreign residents should be aware of the new rules and adjustments to fully benefit from the revised system.
Source: National Tax Agency
