Any good trip to Japan includes great food, traditional culture, and beautiful sights, but the best way to bring all that fun home with you is of course a shopping spree! From Kit Kats and cosmetics to vintage fashion and luxury goods, being able to pay tax-free prices at the register and pack all your new purchases away in your suitcase is pure bliss. For better or for worse, however, the Japan National Tax Agency has announced that this style of instant tax-free shopping in Japan will come to an end on November 1st, 2026, to be fully replaced by a new “exit refund system.” So, how will this new policy affect visiting tourists?

Who Can Shop Tax-Free in Japan?

Japan’s tax-free program is designed for foreign travelers entering the country on a short-term tourist visa, which includes travelers visiting from visa-exempt countries (like the US or UK) who receive an automatic short-term tourist visa upon entry to the country. If you are an international student, a work visa holder, or even a participant in a working holiday program, sadly you are not (and have never been) eligible for this system.

The purpose of the tax exemption policy is to encourage tourists to spend more while visiting Japan, and even after the upcoming changes, travelers will still be able to enjoy tax-free prices. But once the new system takes effect, all shoppers – tourists and Japanese residents alike – will have to pay the full tax-included price at check-out. To claim their tax refund, tourists will need to complete a process at the airport before departure. In the end, the new system still allows you to enjoy the same tax-free prices as before, but this change might require extra time at the airport to go through the process, which raises an important question: will visitors decide to shop less because it’s too much work to get a good deal? Will people really have the time to show up early at the airport for their refund?

Changes to Japan’s New Tax-Free Shopping System

The new policy introduces several major shifts, and depending on the shopper, some may seem more or less convenient. The most obvious change is the move from deducting tax at checkout to paying tax first, then claiming a refund later. Travelers will also want to take note, however, of another major change, concerning purchase packaging. Under the current (old) system, consumables have been dealt with separately from other purchases, sealed with special packaging to make it clear that they are to be consumed outside of Japan. The new system will abolish these complicated packaging requirements – if you consume your purchases during your trip, they simply won’t be eligible for refund when you leave the country! Big spenders with a serious Japanese snack addiction may be pleased to see that the old purchase limit of ¥500,000 for consumables will also be lifted.

The New Refund Process: How to Get Your Tax Refund

In accordance with the new tax rebate system, the process will shift from an immediate tax deduction at checkout to a three-step procedure:
pay tax at checkout, confirm your purchases when departing from Japan, then get your refund.

Step 1: Pay the Full Price When Shopping

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Shoppers will now be required to pay the full price at check-out, initially paying sales tax when shopping in Japan. Shop staff can then guide the customer to a designated website to register for a tax refund – a QR code will usually be displayed in-store or printed on the receipt. This registration is simple enough, since travelers only need to enter their passport details, contact information, and preferred refund method (such as credit card refund or bank transfer). After registration, shoppers can check their shopping records anytime.

Step 2: Visit the Airport Kiosk When Leaving Japan

Travelers must leave Japan within 90 days of a purchase to receive a tax refund for it, which makes sense, since short-term tourist visas are valid for a maximum of 90 days. To verify the tax refund, automated customs kiosks will be set up at the airport, and travelers can scan their passport and undergo an inspection of their purchased goods. The system automatically checks the traveler’s departure information, transmitting it to the National Tax Agency and participating tax-free stores.

Step 3: Receive Your Refund After Departure

Once all the purchases and information has been verified and confirme, travelers will receive their tax refund through the method selected during registration.

Adjusting to the New Tax-Refund Policy

While this new tax-refund system may seem like a surprising change to the many travelers who frequently visit Japan to see the sights and stock up on their favorite Japanese products, this overhaul comes (in part) in response to news reports highlighting cases where shoppers buy tax-free goods only to resell them domestically, defrauding the government of tax revenue. This large-scale reform of the tax-free system, it would seem, is a sign of the Japanese government’s determination to prevent abuse and ensure fair taxation. For travelers, while the new system adds a “customs confirmation” step that might mean more time wasted at the airport, in the long run, it should hopefully reduce onsite risks and make the refund process more transparent through the use of the new digital platform.

Now that you know exactly what’s coming when the new system officially launches on November 1, 2026, we can only hope that the tax-refund process will go as smoothly as tax-free shopping has in the past. As for whether you should arrive at the airport early? Well, that might just depend on how heavy your luggage is!

Whether you want to bother with the new tax refund system or not, you can save in Japan by using one of our coupons:

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