Tax-free refund system starts Nov 1: only about 2 in 10 shops ready, survey finds
From November 1, 2026, Japan's tax-free system for foreign visitors switches to a "refund method": shops sell at tax-inclusive prices and the consumption tax is refunded after customs confirms the departure. In a survey of 104 tax-free shop owners and managers in major cities by tax-free service provider Pie Systems Japan, only 20.2% said they had finished preparing. It offers a snapshot of how ready shops are, just before launch.
Key points
- Preparation status: 20.2% completed, 39.4% in progress, 22.1% not started but planned
- For roughly the first three months, 41.3% expect tax-free sales to fall and 58.7% expect them to rise
- Top reasons for expecting a fall: reluctance to pay tax-inclusive prices (39.5%); unclear refund steps, longer checkout and staff confusion (37.2% each; n=43)
Background
Under the refund method, shops sell at tax-inclusive prices instead of tax-excluded prices, and the consumption tax amount is refunded after customs confirmation at departure, as explained in the Japan Tourism Agency's guidance for tax-free shops. The Agency reports 64,127 tax-free shops nationwide as of March 31, 2026.
The survey was an online poll run October 7-19, 2026, covering 104 owners and managers of tax-free shops in major cities such as Tokyo's 23 wards, Osaka and Kyoto. It was conducted by a company that sells tax-free procedure services and the sample is small, so it may not represent all tax-free shops.
What it means for shops
Retailers that keep offering tax-free sales need to confirm tax-inclusive checkout, refund guidance and after-sale paperwork before the start date. Views were split in the survey: 50.9% expect lighter in-store procedures, while 51.0% expect more after-sale administration, so results may differ by how each shop runs it.
What shops should do
- Check the Japan Tourism Agency's tax-free shop page for the latest procedures and required steps under the new system
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Summaries are written by Seiichi Studio based on the original releases. Always check the source for the exact details.