Anyone counting down the days to pack for a shopping trip to Japan early next month (starting 1 Nov 2026 GMT+7) should urgently update their information, as the Japanese government is set to enforce a new Tax Refund system for foreign tourists.
This overturns the familiar previous system, where simply showing a passport allowed immediate tax-free payment at checkout. From now on, everyone must follow a new process. “Pay the full price including tax first, then claim your refund at the airport.” This must be done before departing the country.
The main reason Japan introduced this measure is to close loopholes exploited under the old system, where some tourists bought tax-free goods and illegally resold them domestically for profit, which violates the purpose of tax exemption. To plug this gap, the new system requires tourists to pay the full price including 10% consumption tax upfront at stores, then show the purchased goods and receipts to customs officers at the airport upon departure to verify they will take the items out of Japan, before receiving tax refund approval.
You still need to buy at least 5,000 yen (tax excluded) per store per day, but the good news is the new rules remove the previous distinction between general goods (like clothing, bags, electronics) and consumables (like cosmetics, snacks, medicine). You can now combine purchases from both categories in a single receipt to meet the minimum.
The old rule that banned buying more than 500,000 yen of consumables per day has also been abolished.
Previously, consumables had to be tightly sealed in transparent bags and were not to be opened in Japan. Now sealing is no longer required, but strictly do not consume or use these items in Japan. If you eat snacks or open creams while still in Japan, you will lose your right to claim a refund at the airport.
With these rule changes, shoppers must prepare carefully. The most important is budgeting, as you must have sufficient funds on your credit card or in cash to pay the full price including tax upfront. If you plan to buy branded goods, electronics, or other expensive items, calculate your available credit or cash accordingly to avoid shopping interruptions.
Next is organizing your luggage and documents efficiently.
Keep receipts together with your passport in an easily accessible place. It’s recommended to pack the goods you want tax refunds for in a bag that can be easily opened for inspection, as officials may ask to see the items to confirm their presence before approving refunds. Also, the credit card name used for payment must match your passport name exactly; otherwise, you cannot claim the refund.
Finally, allow extra time at the airport.
At the system’s launch and with large tourist numbers, queues for tax refunds at the airport may be long and take more time than usual. It’s best to arrive at the airport at least 3-4 hours early to handle documents, wait in line for refunds, and enter your departure gate calmly without rushing.
Though the process is more involved and requires managing upfront payments, the goal remains to shop for quality goods at great value and get your tax refund. Planning ahead and preparing as advised will ensure your trip to Japan goes smoothly, shopping is enjoyable, and you reclaim every yen of tax you're entitled to.