Japan Changes “Tax-Free at the Register” to “Refund Method” Starting November 2026

Japan has long been a favorite destination for tourists who love to shop. Today, foreign visitors can enjoy tax-free prices on many retail goods by simply showing their passport at the time of purchase. This has made shopping in Japan especially attractive for travelers who do not live in the country. 

Combined with the weak yen, world-famous views and a rich cultural experience, Japan has become a top vacation choice for shoppers from around the world. From electronics and fashion to cosmetics and souvenirs, tax-free shopping has been one of the biggest perks for foreign tourists. 

Photo credit: Japan Wonder Travel

That system, however, will soon change. Japan will shift from tax-free shopping at the register to a tax refund system, changing how visitors receive their consumption tax back. 

What’s changing and why?

Beginning November 1, 2026, Japan will revise its tax-free shopping system for foreign tourists. Instead of removing tax at checkout, visitors will pay the full price first and then apply for a refund later. 

The government refers to the change as 免税制度見直し (Menzei Seido Minaoshi). The revision is designed to prevent misuse of the tax-free program and ensure that tax refunds are only issued for items that are taken out of Japan. 

Photo credit: Japan Kuru

The update will apply nationwide, including major tourist shopping areas such as Tokyo, Osaka, Kyoto and Hokkaido. 

What this means for foreign tourists in Japan

Under the new system, tax-free shopping in Japan will no longer mean skipping the 10% consumption tax at the register. Instead, tourists will pay the consumption tax when they buy eligible items. The tax refund will only be processed after customs confirms the goods are leaving the country. 

Photo credit: Orange POS

While this may feel like an extra step, the government says the new process improves transparency and brings Japan’s tax refund system closer to international standards. 

How Japan’s new tax refund system works

The new tax refund process follows a clear sequence that travelers should understand before shopping in Japan. 

• Tourists will first pay the full amount, including consumption tax, at participating stores. 
• Purchases are then registered for a tax refund, linking receipts and items to the traveler’s passport information.
• Before departing Japan, travelers must visit customs at the airport or port of departure to let customs officers verify their passports, receipts and purchased items. 
• Once customs confirms the items are being taken overseas, the tax refund is approved. Refunds are issued through bank transfer, credit card refund, mobile wallet or other approved payment methods. 

To learn more about the new system, read the explanation of Japan’s national tax agency here.

Don’t panic, Tax Refund Japan helps tourists get their money back

For many foreign visitors, completing a tax refund at the airport can feel stressful, especially during peak travel seasons. Tax Refund Japan is designed to make the process easier under the new system. 

Tax Refund Japan helps tourists follow the official refund steps and receive their tax refunds securely and conveniently. The service complies with Japanese regulations and supports safe overseas remittances. 

The service is operated by the same company behind Smiles Mobile Remittance, which is trusted by many residents and travelers in Japan. 

Tax Refund Japan offers multiple payout options including credit card refunds, bank transfers, mobile wallets and cash pickup in many countries. This flexibility helps reduce waiting time and confusion when leaving Japan. 

Tips for tourists shopping in Japan under the new system

Travelers can prepare for the new tax refund system with a few simple steps. 

• Keep all receipts and refund documents organized throughout your trip. Missing paperwork may delay or cancel your refund. 
• Register refund purchases early instead of waiting until the final day. 
• Arrive at the airport earlier than usual to allow enough time for customs checks and refund procedures. 

Stay financially smart with Smiles

Just as Tax Refund Japan helps make tax refunds easier for tourists, Smiles Mobile Remittance is a trusted choice for residents in Japan who need to send money home. The service is safe, reliable and fast, making overseas transfers simple and worry-free.

With 24/7 multilingual customer support, Smiles helps users send money to loved ones with confidence, knowing their funds are handled securely every step of the way.