Tax-Free Shopping in Japan is Shifting to a New System

Japan has long been a favorite destination for American tourists who love to shop. Right now, visitors can enjoy tax-free prices on many retail goods by showing their passport at checkout. That simple process has made shopping in Japan especially appealing for travelers looking to buy popular items like skincare, designer fashion, electronics and souvenirs. 

Combined with the weak yen, iconic landmarks and unforgettable food and culture, Japan continues to be one of the top vacation destinations for travelers from the United States. For many tourists, shopping has become a major part of the trip, whether it is picking up luxury goods in Tokyo, cosmetics in Osaka or specialty items in Kyoto. 

Photo credit: Japan Wonder Travel

But Japan’s tax-free shopping system is about to change. 

Starting in 2026, Japan will shift away from tax-free shopping at the register and move to a tax refund system. This will change how tourists receive their consumption tax back. 

What’s changing and why?

Beginning Nov. 1, 2026, Japan will revise its tax-free shopping system for foreign visitors. Instead of automatically removing the tax at checkout, tourists will pay the full price first, including Japan’s 10% consumption tax, and then apply for a refund later. 

The government refers to the change as 免税制度見直し (Menzei Seido Minaoshi). Officials say the update is meant to prevent misuse of the current system and make sure tax refunds are only given for goods that are taken out of Japan. 

Photo credit: Japan Kuru

What this means for U.S. travelers visiting Japan

For American tourists, the biggest difference is simple: tax-free shopping will no longer mean skipping tax at checkout. 

Instead, travelers will pay the consumption tax when purchasing eligible items. The refund will only be issued after customs verifies that the goods are leaving Japan. 

Photo credit: Orange POS

For many visitors, this may feel like an extra step, especially for those traveling for the first time. However, Japan says the new process will improve transparency and bring the country’s refund system closer to international standards. 

How Japan’s new tax refund system works

Under the new system, travelers should expect a refund process similar to what they may have seen in parts of Europe or other major tourist destinations. 

Here is how it will work: 

• Tourists will pay the full amount, including tax, at participating stores. Purchases will then be registered for a tax refund, linking receipts and purchased items to the travelers passport information. 
• Before leaving Japan, travelers must go through a customs confirmation process at the airport or port of departure. Custom officers may request the traveler’s passport, receipts and the items that were purchased. 
• Once customs confirms the items are being taken out of Japan, the refund will be approved. Travelers can receive the refund through several payout options, including a bank transfer, credit card refund, mobile wallet or other approved methods. 

Japan’s National Tax Agency provides an official explanation of the new system in English and Japanese. 

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

For many travelers, dealing with refunds at the airport can be stressful. Airports are already busy, and last-minute paperwork can easily lead to confusion or missed refunds. That is why Tax Refund Japan was created. 

Tax Refund Japan is a service that helps visitors follow the official tax refund steps and receive their tax refunds securely and conveniently. The service is compliant with Japanese regulations and is designed to support safe overseas remittances. It is operated by the same company behind Smiles Mobile Remittance, a trusted service used by many residents in Japan for international money transfers. 

Tax Refund Japan offers multiple payout options including credit card refunds, bank transfers, mobile wallets and cash pickup in many countries. This flexibility helps tourists avoid unnecessary hassle and gives them more convenient ways to receive their refund after their trip.

Tips for tourists shopping in Japan under the new system

Travelers can make the refund process easier with a few simple habits. 

• Keep all receipts and refund documents organized throughout your trip. Missing paperwork could delay or cancel a refund. 
• It is also a good idea to register refund purchases early instead of waiting until the last day of your vacation.
• Finally, travelers should arrive at the airport earlier than usual, especially during peak travel seasons, to allow enough time for customs checks and refund procedures. 

Stay financially smart with Smiles

Shopping is only one part of managing money while traveling abroad. Just as Tax Refund Japan helps visitors receive tax refunds smoothly, Smiles Mobile Remittance helps users send money internationally in a safe and reliable way. 

Smiles offers fast transfers and 24/7 multilingual customer support, helping customers send money to loved ones with confidence. 

Smiles Mobile Remittance is also expanding, and the service is coming to the United States soon, giving U.S. customers a convenient way to send money overseas.