Tax-free shopping shifts to refund method as revised law takes effect Nov 1

The revised law moving Japan's consumption-tax exemption for inbound travelers to a refund method (refund after purchase or after departure) took effect on November 1, 2026. Money-transfer operator Digital Wallet marked the day by launching its refund remittance service TAX REFUND JAPAN for tax-free retailers nationwide. Tax-free shops and e-commerce sellers need to set up how refunds are handled under the new system.

Key points

The revised law shifting tourist tax exemption to the refund method took effect on November 1, 2026
Digital Wallet launched TAX REFUND JAPAN in full for tax-free businesses nationwide the same day
Payout options cover 200+ countries and regions, including Visa, Mastercard and UnionPay cards, mobile wallets, bank accounts and cash pickup (per the company)

Background

Until now, tax-free stores typically waived consumption tax at the counter at the time of sale. The revision moves the exemption to a refund method.

According to the company, it ran pilot operations with some businesses for more than a year after the law was enacted. It also says its service connects to POS and tax-free systems via API and lets travelers receive refunds by a method different from their payment method. Note that this article is based on a service provider's announcement; confirm detailed requirements on official sources.

What it means for shops

Retailers, restaurants and souvenir shops that run tax-free counters or tax-free e-commerce need to review how refunds reach travelers. Deciding early whether to handle this in-house or through a remittance or tax-free system provider will also make it easier to explain the process to visitors.

What shops should do

Check the requirements and procedures on official sites such as the National Tax Agency and Japan Tourism Agency (consult a tax professional if unsure)

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Original releasePR TIMESprtimes.jp ↗

Summaries are written by Seiichi Studio based on the original releases. Always check the source for the exact details.

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