Tax-free sales for tourists switch to the refund method on Nov 1, with no overlap period

On November 1, 2026, Japan's consumption-tax exemption for foreign visitors moved to a "refund method". Shops sell at tax-inclusive prices, and the tax amount is refunded after customs confirms the goods left the country. There was no overlap with the old system, so shops that are not ready cannot make tax-free sales from November 1.

Key points

The new system started on November 1, 2026 with no transition period alongside the old one; shops that are not set up cannot sell tax-free
Flow: sell at the tax-inclusive price, customs confirms export at departure, then the consumption-tax amount is refunded; shops send purchase records to the National Tax Agency for each sale
In a survey of 104 tax-free shop owners and managers (Oct 7-19) by tax-free system provider Pie Systems Japan, only about 20% said they were ready for the new system

Background

This is based on a November 2 release from Pie Systems Japan, which says it drew on the National Tax Agency's explanation of the refund-method revision. The company's CEO commented that Japan's tax-free system changed substantially for the first time in about 74 years.

The survey was an online poll with 104 valid responses run by the company itself, so it may not represent all tax-free shops. The company's statement that its system is running normally refers only to its own service, not to the tax agency's or customs' systems.

What it means for shops

Retailers, souvenir shops, drugstores and others that sell tax-free to visitors, or plan to, are affected. Because the process now depends on sending purchase records and refunding after departure, registers, tax-free systems and the way staff explain the process all need to match the new rules.

What shops should do

Check the National Tax Agency's official page for the new requirements and any filings the shop must make

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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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