Japan moves tax-free shopping to the refund method from 1 November 2026

What changed in detail

Japan’s tax-free (exported goods sales site) scheme moves to the refund method from 1 November 2026. The National Tax Agency’s Q&A on the refund method (overview edition, dated April 2025) states that it is implemented from that date.

Under the refund method, tax-free shops sell to eligible non-resident travellers with consumption tax charged, and refund the tax-equivalent amount after Customs confirms that the goods have been taken out of Japan.

Transactions from 0:00 on 1 November 2026 fall under the refund method. There is no transition period allowing the current method and the refund method to be used in parallel.

Related changes include the abolition of the general-goods and consumables distinction, the JPY 500,000 consumables cap and special packaging requirements.

What it means

There is no transition period in which the old and new methods run side by side, and the method follows the sale date, so a shop’s point-of-sale and refund systems must be ready to charge tax at the till for transactions from 0:00 on 1 November 2026.

Cash flow changes: the shop charges tax and refunds it only after the export confirmation, which turns an upfront exemption into a refund liability to be funded and tracked.

Shops should confirm their system provider supports the refund method and the end of the consumables rules before the date.