The Japanese government has changed the tax-free shopping system for international tourists. From November 1, 2026, tourists will no longer receive tax-free items straight away. Instead, tourists will pay the full amount for their items before receiving a refund on their departure.
This aims to combat tax fraud.
Foreign tourists will now pay the standard rates of consumption tax (usually 10% or 8% depending on the item) at the point of sale. They will then be able to claim their refund at airports/ports.
How the New Refund System Works
Requirements for tourists:
- Minimum purchase: Spending at the same authorized retailer on the same day must reach at least the equivalent of about $32 (the legal yen threshold).
- Time limit: Claims must be completed within 90 days of the purchase date.
- Customs process: Dedicated terminals operate at major airports including Narita, Haneda, and Kansai. Officials check passports and may inspect luggage, so travelers need to complete the process before checking bags.
- Digital support: The official Visit Japan Web platform helps with straight validation.
- Packaging changes: Retailers no longer need to seal general goods and consumables in special plastic bags. However, items cannot be used or consumed in Japan if a refund is desired.
Tourist Spending Hits Records Even as Arrivals Soften
This comes at a time when foreign tourists are spending record amounts. According to data from the Japan Tourism Agency, international tourists have spent a record amount of $14 billion in the third quarter of 2026—a 3.2% year-on-year rise in local-currency terms. Average spending per visitor climbed 6.1% to about $1,483.
Accommodation was the most spent on (35.2%), followed by shopping (27.7%) and restaurants (22.9%).
The Japan National Tourism Organization reported 3.10 million international tourists arrived in September 2026, a decrease of 5% compared to the previous year. Overall, in the first nine months of 2026, 30.73 million international tourists visited Japan, a decrease of 2.9% compared to the previous year. This has been due to higher airfares, fewer flights, and extreme weather, especially for Chinese tourists.
