Japan's new tax-free system starts Nov 1 with refund method
On November 1, 2026, Japan's tax-free shopping scheme moved from the old consumption-tax exemption at the point of sale to a refund method: eligible foreign visitors pay the tax when buying and get it back after customs approval on departure. Tax-free service provider Global Blue TFS Japan says it now covers the process from the shop counter to airport refunds (per its press release). Tax-free shops need to review their checkout steps and how they explain the process to visitors.
Key points
- From Nov 1, 2026, eligible visitors pay consumption tax at purchase and receive a refund after customs approval when leaving Japan
- The company obtained a Type I funds transfer business licence on Oct 14, 2026 and says it can process refunds above 1 million yen
- Airport refund service started Nov 1 at six airports (Chubu, Fukuoka, Kansai, Kobe, Narita, New Chitose), in 12 languages, plus about 15 refund counters in city areas
Background
Under the former exemption method, tax-free shops sold goods without consumption tax at the point of sale. Under the refund method travellers first pay the tax-inclusive price, so where and how they get the money back becomes important for both shops and visitors.
The release says the company supported more than 2,000 retailers with systems, operations and staff training ahead of the change, covering over 10,000 stores. This is the provider's own announcement, so scheme details should be checked against official guidance.
What it means for shops
Retail, restaurant and souvenir shops that offer tax-free sales will see changes at the register and in what they must explain to visitors. How clearly a shop communicates the refund process and pick-up points can affect visitor satisfaction and buying decisions.
What shops should do
- Ask your tax-free service provider whether your shop is already set up for the refund method
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Summaries are written by Seiichi Studio based on the original releases. Always check the source for the exact details.