Japan Implements New Tax-Free Refund System Starting November 2026

Starting November 1, 2026, Japan’s National Tax Agency is fundamentally changing how international visitors access tax-free shopping. Previously, tourists could present their passports at participating retailers to receive an immediate exemption from the 10% consumption tax at the point of sale. Under the new 'refund method,' shoppers will be charged the full tax-inclusive price for all purchases. To recover the tax, travellers must present their goods and receipts to customs officials at the airport upon departure for verification.

This policy shift is designed to tighten oversight on tax-free exports and ensure that goods purchased under the exemption are actually removed from the country. The government has also standardized the export window, requiring all tax-free goods to be taken out of Japan within 90 days of purchase. Furthermore, the previous distinction between 'consumable' and 'general' goods has been removed, and the exemption is now strictly limited to items the traveller can personally carry out of the country.

All international tourists visiting Japan who intend to make tax-free purchases are affected by this change. Travellers currently in Japan during the transition period (late October to early November) will be subject to both systems, with the old rules applying to purchases made through October 31 and the new refund system applying to all transactions from November 1 onwards.

Makutet expects this transition to cause significant friction at Japanese airports during the initial rollout, as travellers adjust to the new administrative burden. While the government aims to curb abuse of the tax-free system, the added complexity may discourage some tourists from engaging in high-value retail spending, potentially impacting the luxury goods sector in major urban hubs.