How Japan’s tax-free shopping rules are changing for foreign visitors this year, ETCFO
Japan is changing how tax-free shopping works for foreign visitors, with new rules rolling out this year from November. The changes aim to curb misuse of the tax exemption scheme while keeping Japan attractive for overseas shoppers.
Under the current system, foreign tourists staying in Japan for less than six months, and Japanese nationals living abroad for at least two years, can shop without paying the 10 per cent consumption tax. The exemption applies at registered stores displaying the official “Japan. Tax-free shop” sign. Shoppers must spend at least 5,000 yen on general goods such as clothing, electronics and souvenirs, or between 5,000 yen and 500,000 yen on consumables like food, cosmetics and medicines, and show a passport with an immigration stamp at checkout.
At present, some stores deduct the tax at the point of sale, while others require shoppers to pay the full amount and claim a refund later at a designated counter, sometimes after paying a service fee. The goods must be taken out of Japan and used overseas.
What has already changed in 2025
One key change has already taken effect from April 1, 2025. Visitors can no longer claim tax-free shopping by shipping purchases overseas and showing delivery slips at departure. If customs officials find that travellers are not carrying the items when they leave Japan, the consumption tax will be charged. If they are carrying the items, the tax can be waived. Some retailers may still ship goods overseas directly, allowing shoppers to avoid paying the tax.
How the system will work from 2026
According to Japan’s National Tax Agency, a bigger change will come from November 1, 2026. Japan will move to a refund-based tax-free system, similar to those used in South Korea, Australia and the European Union. Visitors will have to pay the 10% consumption tax when they make a purchase. To get a refund, they must keep receipts and complete refund procedures at electronic kiosks before departure. Customs agents will issue the refund only if they confirm that the goods are being taken out of the country.
Customs officials will have the authority to deny refunds if they suspect items were resold in Japan or cannot verify that the goods are leaving the country.
Additional reforms are also planned to simplify the system. The distinction between general goods and consumables will be removed. The 500,000 yen purchase cap on consumables will be lifted. Special packaging rules for consumables will end, and retailers will no longer need to judge whether items are for everyday personal use.
The changes are positioned as a way to protect tax revenue while allowing tourists to continue enjoying shopping in Japan.
