The Old System: Instant Exemption
For years, tax-free shopping in Japan has been a straightforward process for tourists. At participating stores, you would show your passport to prove you are a temporary visitor. The store would then either charge you the price without the 10% consumption
tax, or you would pay the full price and receive an immediate cash refund at a dedicated counter in the same store. This system allowed for instant savings. For consumable items like cosmetics and snacks, purchases were sealed in a special bag that was not to be opened until after leaving Japan. This familiar and convenient process is what many repeat visitors have come to expect.
The New System: Pay First, Refund Later
To curb abuse of the system, Japan is moving to a model common in Europe. The new system, which officially starts on November 1, 2026, is a 'pay first, refund later' method. This means shoppers will pay the full price, including the 10% consumption tax, at the register. You will then need to complete a procedure at the airport or seaport before your departure to claim a refund of the tax you paid. The refund can be processed back to a credit card or through other electronic means. While it adds a step at the end of your trip, the new rules also bring some benefits: the distinction between general goods and consumables is being abolished, as are the special sealed bags and the 500,000 yen spending cap on consumables.
The Critical Transition: October vs. November
The headline's question of 'which system applies' has a very clear answer: it depends on the date of purchase. There will be no transitional overlap or grace period. Any tax-free purchase made up to and including October 31, 2026, will fall under the old instant exemption system. Any purchase made on or after November 1, 2026, will be subject to the new 'pay first, refund later' rules. If your trip spans these dates, you will need to manage two different types of receipts and procedures. For example, items bought on October 30 will have the tax removed at the store, while items bought on November 2 will require you to pay the tax and claim it back at the airport.
Who Qualifies and What Is Required?
The core eligibility rules remain the same. Tax-free shopping is available to foreign visitors on a temporary visitor visa who are staying in Japan for less than six months. You will always need to present your passport at the time of purchase. The minimum spending requirement to qualify for tax-free benefits also remains: you must spend at least 5,000 yen (before tax) at a single store on the same day. Under the new system, it becomes easier to reach this threshold as all your purchases, whether they are clothes or cookies, will be counted together towards the same total. One key change to remember is that all tax-free goods must be taken out of the country with you personally within 90 days of purchase; a previous rule allowing for separately shipped goods was abolished in April 2025.
How to Prepare for Your Trip
If you are traveling after November 1, the most important advice is to be organised and allow for extra time at the airport. Keep all of your tax-inclusive receipts safe, as you will need them for the refund process. Before checking your luggage, you must head to the new customs kiosks or counters. There, you will present your passport and follow the procedure to verify your purchases are being exported. In some cases, you may be asked to show the items, so it's wise to keep them easily accessible rather than buried at the bottom of your checked suitcase. Using digital tools like the Visit Japan Web service may help streamline the process. Expect the airport refund procedure to take extra time, especially in the initial months, so plan accordingly to avoid a last-minute rush.
