Japan’s new tax-free system was introduced after careful review by the Ministry of Finance, the National Tax Agency, the Ministry of Economy, Trade and Industry, and the Japan Tourism Agency. The change was prompted by findings that, among tax-free purchases exceeding 100 million yen, nearly 90 percent of the items were never taken out of Japan. As a result, consumption tax that should have been paid was rarely recovered, causing significant economic losses. Some stores even chose to stop offering tax-free shopping altogether, creating a serious challenge for the government.

To address this issue, Japan will introduce a revised system on November 1, 2026, in line with the Tax Reform Outline for 2024 (Reiwa 6). The goal is to prevent improper use while avoiding additional burdens on tax-free retailers. Under the new “refund method” (refund-based system), customs officers will confirm at departure that purchased items are leaving Japan with the traveler. Only after this confirmation will the consumption tax be refunded. By switching to this refund-based approach, Japan aims to prevent situations where tax-free items remain in the country, protecting both retailers and the wider Japanese economy from further losses.

By now, you might be wondering how the new tax-free system actually differs from the one in place today. To make things easy to understand, let’s take a quick look at the key differences between the current system and the new rules coming in 2026.

The biggest difference between the two systems is when the tax is handled. Under the current system, travelers purchase items at a tax-free price directly at the store. While this makes things quick and convenient at departure, Japan has no reliable way to confirm that the tax-free items actually leave the country. As a result, consumption tax on items that remain in Japan often cannot be recovered, leading to financial losses.

Under the new system starting in 2026, travelers will first purchase items at the tax-included price. After arriving at the airport, customs will confirm that the items are being taken out of Japan. Once this check is completed, the consumption tax will be refunded. Although this means travelers may need to allow a bit more time during departure, it enables Japan to properly verify exports and prevent misuse of the tax-free system.

Now that we have covered why Japan is changing its tax-free system, how the new rules differ from the current ones, and the overall process, let’s move on to the most important part: how to complete your tax refund at the airport.

After purchasing items at a tax-free shop, travelers must register those items on the tax refund website (J-TaxRefund). If this is your first time using the system, you will need to enter your passport details, contact information, and refund account details. Once registration is complete, you can continue enjoying your trip and take care of the rest at the airport later. It is a good idea to double-check each day, such as when you return to your hotel, that all items you want refunded have been properly registered. This helps avoid any last-minute stress at the airport.

When you arrive at the airport, go to a self-service kiosk such as a KIOSK terminal and scan your passport. The system will check the items you have registered for a tax refund. After completing this step, you can proceed with departure procedures as usual.

Once you have left Japan, the system will complete its review. If everything is approved, the consumption tax will be refunded to your designated account through refund platforms such as J-TaxRefund.

If all of this sounds a bit overwhelming, don’t worry. You really only need to remember the key points below.

Because the new system introduced in 2026 adds an extra step to the departure process, it is recommended to arrive at the airport earlier than usual. This will help ensure you have enough time to complete the tax refund procedure and receive the consumption tax you are entitled to.

When the new tax-free system launches on November 1, 2026, it will not only change the refund process but also remove several restrictions under the current system. These updates are designed to give travelers more freedom when shopping. Below is a simple comparison of what will change.

The new tax-free system launching on November 1, 2026 brings significant changes. Compared with the current system, travelers will need to complete more steps to receive a tax refund, which may feel confusing at first. To help you prepare, here is a simple summary of the key points to watch out for.

Worried that the new system might feel complicated at first? In reality, once you register the required information on the tax refund website (J-TaxRefund), you are already more than halfway done. The first time may take a little extra effort, but after that, the process becomes quite simple. You can focus on shopping as usual, then just receive the receipt with the J-TaxRefund QR code from the store and scan it to complete registration. In many ways, it can actually feel more convenient than before.

To successfully receive your tax refund, it is not enough to simply register your eligible purchases on the tax refund website (J-TaxRefund). You will also need to scan your passport at a self-service kiosk such as a KIOSK terminal at the airport. This allows the system to verify your information and confirm that the items are leaving Japan with you before the refund can be processed.

Travelers to Japan come from all over the world. In 2024 alone, Japan welcomed 36.87 million visitors, more than the total population of Taiwan. Because of this, it is expected that many people will be completing tax refund procedures at airports. Even under the current system, travelers typically arrive at the airport at least two hours before their flight.

Once the new system is in place, many travelers may need to arrive three hours or more in advance and be prepared to wait in line for tax refund processing. The good news is that Japan is aware this could place an extra burden on travelers, and after the new system launches, adjustments such as operational improvements or additional equipment may be introduced based on actual conditions.

The new system launching in November 2026 brings major changes to the tax refund process and adds a bit more work for travelers. However, it helps prevent losses in Japan and supports the development of better tourism services overall. Once you are familiar with using the tax refund website (J-TaxRefund) and make sure your items leave Japan with you, all that remains is to wait for the consumption tax refund to arrive in your account back home. Then, why not use that refund toward your next trip to Japan?

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