The procedures for purchasing tax-free goods in Japan have changed significantly. Under the previous system, consumption tax was exempted at the time of purchase, which made it difficult to confirm whether goods had actually been taken out of Japan. As a result, abuse of the system, such as reselling goods bought at tax-free prices within Japan, had become a problem. 

In response, from November 1, 2026, the consumption tax exemption system for foreign travelers and Japanese nationals temporarily returning to Japan who meet the relevant requirements (hereinafter, “travelers”) has shifted to a “refund method,” under which an amount equivalent to the consumption tax is refunded after confirmation at the time of departure. 

1. Overview of the New System

(1) Basic Mechanism from Purchase to Refund 

Under the new system, travelers first pay the price including consumption tax at the tax-free shop when purchasing goods, and register a refund method (described below). Then, upon departure, they undergo a customs check confirming that the goods are being taken out of Japan, and if there are no issues, an amount equivalent to the consumption tax is refunded. Note that the tax exemption applies only if the traveler departs Japan within 90 days, counting from the day after the date of purchase. 

Upon departure, travelers hold their passport over a dedicated terminal at the airport, and if “green” is displayed on the screen, the procedure is complete. If “red” is displayed, a customs officer will physically inspect the purchased goods, and the procedure will be completed if there are no issues. At some airports, the procedure can also be completed through the government website “Visit Japan Web.” 

After confirmation by customs, the amount equivalent to the consumption tax will be refunded by the tax-free shop or other relevant party. Anticipated refund methods include bank transfer, transfer to a credit card, transfer via an app, and receipt of cash at the port or airport of departure. However, specific refund methods and registration procedures vary depending on the tax-free shop or refund service provider, so travelers should check with the shop at the time of purchase. 

(2) Changes Concerning Tax-Exempt Goods 

The new system has significantly simplified the rules concerning goods eligible for tax exemption. 

Previously, eligible goods were divided into “general goods” and “consumables.” For consumables, a purchase cap of 500,000 yen per person, per shop, per day applied, and special packaging (such as a sealed transparent bag) was required. The new system has abolished this distinction, as well as the purchase cap and the special packaging requirement. The minimum purchase amount (5,000 yen), however, remains in place. 

In addition, tax exemption was previously limited to “goods for ordinary daily use,” that is, goods that travelers themselves use in their daily lives, and goods for business use or for sale were excluded. The new system has also abolished this usage requirement. However, it remains the case that, to receive the tax exemption, travelers must have all purchased goods in their possession and take them out of Japan themselves upon departure. 

Note that (i) gold and platinum bullion, (ii) gold and platinum coins, and (iii) goods that are not subject to consumption tax are not eligible for tax exemption. 

 

2. Points Travelers Should Note

(1) Customs Checks Are Assessed per Purchase 

Customs checks are conducted on the basis of each single purchase transaction (receipt, etc.). If even one of the tax-exempt goods included in that unit is not in the traveler’s possession upon departure, for example because it has been used, consumed, or lost, no refund can be received for any of the goods included in that purchase. Purchased goods and receipts must be kept properly until the procedure is complete. 

(2) Complete Departure Procedures Before Checking In Baggage 

Customs checks of purchased goods must be completed before handing over baggage to the airline. Please note that once purchased goods have been checked in as baggage, they can no longer be checked by customs. 

Screening at the dedicated terminal is usually completed quickly, but a “red” result may require additional time for an individual physical inspection. Since no refund will be made unless all procedures are completed, it is important to allow sufficient time. Also note that when transferring from a domestic flight to an international flight, the tax-free procedure must be completed at “the airport from which you finally depart Japan.” 

(3) Obligation to Take Goods Out of Japan After Confirmation, and Penalties 

If goods that have been confirmed by customs are not promptly taken out of Japan, an amount equivalent to the consumption tax will be collected immediately under the Consumption Tax Act. Furthermore, violating the obligation to take the goods out of Japan without justifiable reason may result in imprisonment for up to one year or a fine of up to 500,000 yen. 

 

As described above, Japan’s tax-free system now works very differently from before. To be sure of receiving a refund under the new system, it is essential to manage purchased goods properly and allow ample time for departure procedures. 

 

(References) 

National Tax Agency, “Revision of the Tax-Free Shop System to the Refund Method” (accessed November 2, 2026, https://www.nta.go.jp/publication/pamph/shohi/menzei/201805/format/002.htm) 

Japan Tourism Agency, “[For Travelers] If You Wish to Purchase Tax-Free Goods” (accessed November 2, 2026, https://www.mlit.go.jp/kankocho/tax-free/page01_000001_00021.html)