From November 1, 2026, Japan’s tax-free system for inbound travellers will change to a refund-based system.
Under current rules, eligible visitors are exempt from paying 10% consumption tax at the point of purchase at designated stores. Usually, visitors would need to present their passport proving their temporary visitor status. However, from November, visitors will need to pay the full tax-inclusive price (including 10% consumption tax) and apply for a refund when completing the necessary procedures before their departure.
The new "Refund Method" system brings with it a great deal of simplification, including the abolition of the current “sealed packaging” requirement for consumables, which previously required items (like cosmetics, medicines and food items) to be contained in a sealed bag. The consumables product category will be phased out entirely.
How it works
- Pay the full tax-inclusive price
When shopping in store at an eligible Japan Tax-Free Shop, present your passport when you are ready to purchase. Staff will verify your details while registering a record of the purchase, and you will pay the full tax-inclusive price. A record of your purchase is automatically submitted to Japan’s customs system and will help with confirmation at departure. - Prepare for Departure
Departures from Japan (and completing your tax-free confirmation procedures at the airport) should take place within 90 days of purchase for the tax-free status to remain valid. Along with the goods, keep the receipts and allow extra time at the airport for going through the refund process. - Declaring your items
When declaring your items at the airport, customs will verify your passport info and tax-free purchase records, and you may be asked to present your purchased items. In some cases and locations, this procedure may be self-service.
In principle, you must have all tax-free items shown on any eligible receipt. If any item is missing, the tax-free status of all items will be invalidated. - Get refunded
Refunds will be made according to the individual tax-free shop (or a contracted refund service) where you purchased from. Credit card refunds may take up to 1-2 weeks, and bank transfers 2-4 weeks (varies by destination bank and country).
Read more about the changes on the National Tax Agency’s website.
Comparison of tax-free systems
| Category | Current | From Nov 1, 2026 |
|---|---|---|
| Purchase | Pay the tax-exclusive amount |
|
| Tax-free purchase amount |
| JPY 5,000 or more |
| Consumables |
| No restrictions *Consumables as a product category is being phased out |
| Purpose | Products used for daily life | Regardless of purpose of use |
Japan Tax-Free FAQ
What about any purchase caps?
The current daily purchase cap on consumable goods and non-consumable goods of 500,000 JPY is also being removed. In fact, all distinctions between consumable and non-consumable items are being phased out, making the system easier to understand and easier to explain for frontline retail staff. Purchases of 1,000,000 JPY (tax-exclusive) or more will still be subject to detailed product registration to support tax-free handling and customs verification procedures.
What about shipping overseas?
Since April 1, 2025, tax-free eligibility ceased for items shipped separately overseas via international parcels or a shipping agent, since delivery slips cannot be used to prove an item was sent. Unless purchasing from a retailer who can directly handle sending your items overseas, you should present your tax-free items as normal at a customs examination when departing the country (via hand luggage or before you check in any baggage).
What about duty-free?
You may be familiar with airport duty-free shops, which affect consumption tax, liquor tax, tobacco tax and customs duty. These areas remain unaffected and goods can be purchased tax-free at the point of payment
Who is eligible for tax-free status purchases?
Visitors defined as non-residents will be eligible to use Japan’s new tax refund system. This includes foreign visitors (e.g. for short-stay and sightseeing) within six month of entry, as well as Japanese citizens living overseas (additional verification of overseas residence certificates will be required). Those arriving in Japan via cruise ship will also be eligible for with a cruise landing permit.
