Japan to introduce tax refund system for duty-free shopping from November 2026

Japan will change its tax-free shopping system from November 2026, replacing point-of-sale exemptions with a refund process completed at customs before departure.

The Japan tax-free shopping system will undergo major changes from 1 November 2026, as the country replaces the current point-of-sale tax exemption procedure with a refund-based model for international visitors.

Under the revised system, tourists will continue to present their passports when purchasing eligible goods at participating retailers. However, instead of receiving an immediate tax exemption at the time of purchase, visitors will need to apply for the refund at customs when departing Japan.

The new process will require travellers to complete the refund procedure at customs before checking in for their return flight. Purchase details will continue to be recorded electronically through passport verification at the point of sale.

Changes to duty-free shopping procedur es

The updated Japan tax-free shopping system will also introduce several simplifications to existing procedures. The current distinction between general goods and consumable goods will be removed, creating a single category for tax-free purchases.

Consumable products, which currently must remain in sealed packaging until departure, will no longer require it under the new rules. However, travellers will not be eligible for a tax refund if they consume these products while staying in Japan.

In addition, the period during which visitors may take purchased goods out of Japan will increase from 30 to 90 days.

Impact on international visitors and retailers

The reform aims to streamline Japan’s duty-free shopping procedures while strengthening verification processes for tax-free purchases made by overseas visitors.

For international travellers, the main change will be the shift from receiving an immediate tax exemption in stores to completing a refund process before departure. Retailers and  tourism businesses will need to adapt their systems and customer guidance ahead of the implementation date. 

Corporatewellness programs

Tax-free shopping remains an important component of Japan’s inbound tourism economy, supporting spending by international visitors across department stores, retail outlets, shopping districts and destination areas throughout the country.

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