Effective November 2026! What You Need to Know About Japan’s New Refund Method

Starting November 1, 2026, Japan will end its long-standing tax-free shopping at the time of purchase and introduce a new system called the Refund Method. Under this system, eligible items must be purchased with consumption tax included and travelers can receive a refund for that tax at the airport when departing Japan.

This article provides an overview of the differences between the current and new systems, the three-step Refund Method process, and common cases where refunds may not be granted. By giving these points a quick review before your trip to Japan, you’ll be able to complete the procedures smoothly and efficiently once you’re there.

• Table of Contents:
• Tax-Free Shopping Shifts to Pay Now, Refund Later in November 2026
• Surprisingly Easy! A 3-Step Guide to the New Refund Method
• Caution! No Refunds in the Following Cases
• FAQ About the New Tax-Free System
• Remember to Clear Customs Before Checking Your Luggage

Tax-Free Shopping Shifts to Pay Now, Refund Later in November 2026

Picture courtesy of Japan Tourism Agency
Until now, travelers could simply show their passport at stores displaying the “Tax Free” sign and purchase items immediately at the tax-free price.

However, starting November 1, 2026, the Japanese government will be implementing the Refund Method nationwide. Under this system, travelers must pay the price including consumption tax at checkout and can receive a refund for the tax-equivalent amount after clearing customs inspection at the airport (or seaport) on their departure day.

Surprisingly Easy! A 3-Step Guide to the New Refund Method

Picture courtesy of PIXTA

Step 1: Buy at Tax Inclusive Prices at Tax-Free Shops and Register Your Refund Method

During checkout, you will be asked to present your passport to confirm your short-term visitor status, just like in the current system. However, instead of paying the tax-free price, you will pay the price with the consumption tax included. At the time of payment, you will also register your refund method. Once you have cleared customs inspection and your purchase transactions have been verified, your refund will be issued through your registered method.

Until now, consumables such as cosmetics, food, and medicine had to be sealed in special packaging and could not be opened or used while in Japan. Under the Refund Method, this requirement will be discontinued. However, the rule that you cannot open, use or consume eligible items before departing the country will not change. Please open or use them only after leaving Japan.

Step 2: Clear Customs Before Checking Your Luggage

This step is the easiest to overlook and the most important in the new system. You can avoid any issues later on by completing customs inspection before checking your luggage.

International departure lobbies will be equipped with Customs Tax Refund Kiosks (or electronic terminals) for tax-free procedures. You can confirm your purchase records simply by scanning your passport at the kiosk.

The system will display one of the following two results:

・GREEN: Tax-free procedures are complete. Proceed to the departure process (checking your luggage).

・RED: All eligible items must be brought to the customs counter to be inspected by a customs officer.

Additionally, if customs inspection is not completed within 90 days after the date of purchase, that purchase is no longer eligible for a consumption tax refund.

* If you complete customs inspection after checking your luggage, the next steps will depend on your result. If you receive a GREEN result, you can proceed with the refund procedures. However, if you receive a RED result, whether you can retrieve your items for inspection will depend on the airline due to your luggage already being checked in. Some airlines may not allow this, so it is best practice to complete customs inspection before checking your luggage.

Visit Japan Web is also a great tool.

At major airports with high passenger traffic (Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose, and Naha), kiosks for tax-free procedures will be available. You can also use Visit Japan Web to complete the procedures online instead of using a kiosk in designated areas of the international departures lobby where dedicated Wi-Fi for these procedures is available (before the security checkpoint).

Caution! No Refunds in the Following Cases

Picture courtesy of PIXTA
The Refund Method treats “refund” and “actually taking your purchased tax-free eligible items out of Japan” as a set. Because of this, if even one step or condition is incomplete, you may not be able to receive a refund for the consumption tax. Pay attention in particular to the following cases.

1. If even one item on the receipt is missing

Customs inspection is conducted on a per-purchase basis (i.e. per receipt).

In other words, if you are unable to bring even one tax-free eligible item listed on the receipt for customs inspection (whether it was transferred, lost, used, or consumed), then not only that missing item, but all eligible items on that receipt will become ineligible for refund.

2. If a consumable has been opened, used, or consumed in Japan

Consumables such as cosmetics, medicine, and food that have been opened, used, or consumed within Japan before departure will become ineligible for a refund. This rule remains unchanged under the Refund Method; the discontinuation of special sealed packaging does not relax this requirement.

3. If you arrive late and don’t have enough time for procedures

If you arrive late and have to stop the customs inspection to board your flight, the procedure will not be considered completed. As a result, you will not be able to receive a refund for those purchases.

* If you receive a RED result at the customs kiosk after checking your luggage, whether you can retrieve your checked luggage to complete the tax-free procedures will depend on the airline. There is no standardized policy. Please be aware that you may be unable to retrieve your checked luggage and complete the tax-free procedures.

Additionally, compensation from airlines or customs will not be provided if you miss your flight due to completing tax-free procedures. It’s highly recommended to allow extra time and head to the airport earlier than usual, taking into account the time needed for these procedures.

FAQ About the New Tax-Free System

Picture courtesy of PIXTA
Q: Can I ship tax-free eligible items from Japan to overseas?
A: Ahead of the start of the Refund Method, Japan discontinued the “Separate Delivery System” on March 31, 2025. As a result, tax-free eligible items must either be carried out of the country personally by the traveler or sent through international shipping arranged by the retailer. Whether international shipping is available will vary by store, so please confirm directly with the retailer at the time of purchase.

Q: How long does customs inspection take at the airport or seaport?
A: At a customs kiosk, the procedure normally takes only a few seconds by scanning your passport. However, if you receive a RED result, it will take longer as you will need to bring your tax-free eligible items to the customs counter to be inspected. It’s highly recommended to allow extra time and head to the airport earlier than usual, considering the time needed for both tax-free procedures and your departure schedule.

Q: If I am leaving the country on an international cruise, how do I complete tax-free procedures?
A: For international cruises, whether departing from Japan or from overseas, you will need to bring your tax-free eligible items to the seaport’s customs inspection counter or customs kiosk for inspection before boarding. The basic process is almost the same as the procedure at the airport.

Q: If I leave the country from a domestic airport in Japan after boarding a cruise departing from Japan, where do I complete the procedure?
A: For these travel itineraries, you will basically undergo customs inspection at the final seaport or airport from which you actually depart Japan. For details, please check the notices provided by the seaport or airport you will be using, along with the latest official information.

Q: Can I receive my refund in cash?
A: The refund method is registered in advance at the time of purchase. Available refund options, such as refunds to a credit card or other cashless payments, will vary by store and tax-free operator. Whether you can receive your refund in cash will also vary by store, so it’s best to confirm this at the time of purchase.

Remember to Clear Customs Before Checking Your Luggage

Starting November 1, 2026, Japan’s tax-free system will change from “tax-free shopping at the time of purchase” to the “Refund Method.” This won’t make the shopping process itself more complicated; it simply adds an additional step involving customs inspection on your departure day.

What’s important is to keep these three points in mind: complete customs inspection before checking your luggage, bring all tax-free eligible items listed on your receipt(s), and do not open, use, or consume consumables before leaving Japan. Additionally, by heading to the airport a little earlier than usual on your departure day, you can finish your shopping and refund procedures with peace of mind even under the new Refund Method.

Click here to read the leaflet on the new tax-free system.