ニュース
Japan to Launch New Refund-Style Tax-Free System on November 1 to Combat Illegal Resale
2026年10月22日 12:41
- Starts November 1 2026
On October 22, the All Japan Tax-Free Stores Association held a media briefing on the transition to a new "refund-style" tax-free system for international visitors. Association Chairman Masaki Akita, along with representatives from co-sponsoring organizations and relevant government ministries, spoke about the system's impact on airports, seaports, and duty-free shops, its integration of digital technology, and the expected economic benefits for local regions.
The refund-style system is a framework where international visitors purchase goods at the full price, including consumption tax, and then receive a refund for the tax amount upon departure. This system is designed to prevent the illegal resale of tax-free items and reduce the procedural workload for retailers. As part of a tax reform, the initiative is being jointly carried out by the Ministry of Finance's Customs and Tariff Bureau, the National Tax Agency, the Japan Tourism Agency, and the Digital Agency, and is set to take effect this November 1.
Under the previous system, where consumption tax was waived at the point of purchase, the illegal resale of tax-free goods within Japan became a serious problem. In contrast, with the new refund-style system, travelers will first purchase items at the full tax-inclusive price. They will then receive a refund for the consumption tax amount after customs at the airport or seaport confirms that the goods are being taken out of the country upon departure.
Travelers will need to receive customs confirmation for export within 90 days of purchase. This structure, which ensures that tax exemption is only granted if the products are physically taken out of Japan, is expected to be effective in directly preventing illegal resale.
Furthermore, the requirements for tax-free sales in stores will be significantly relaxed. The distinction between "general goods" and "consumables," which were previously treated separately, will be eliminated. Any purchase totaling 5,000 yen or more (excluding tax) will be eligible for tax exemption in a single transaction. Additionally, the purchase limit of "500,000 yen per day per store" previously set for consumables will be abolished.
By centralizing the export confirmation process at customs upon departure, retailers will no longer need to make individual judgments on whether items are for personal use (as opposed to business purposes). The obligation to use special packaging (sealing in clear plastic bags) to prevent the domestic use of consumables like cosmetics will also be eliminated. This is expected to reduce the labor and material costs associated with packaging, leading to less congestion at cash registers and smoother store operations. For international visitors, the process will become more streamlined, improving convenience.
It should be noted that in response to the widespread misuse of the "unaccompanied baggage" system for sending tax-free goods abroad via post offices, the government already abolished this form of tax exemption as of April 1, 2025. However, the "direct shipping" system, where duty-free stores ship goods directly overseas, will be maintained.
Furthermore, the Digital Agency's "Visit Japan Web" service will be integrated into the new process. Previously, travelers could use a QR code generated by Visit Japan Web in place of their passport for purchases. With the introduction of the refund system, the service has been enhanced. In the international departure areas of major airports (Narita, Haneda, Kansai, Chubu, Fukuoka, New Chitose, and Naha), travelers will be able to complete the customs confirmation process online using their own smartphones via Visit Japan Web, instead of using dedicated tax-free procedure terminals.
The reforms are expected to do more than just strengthen border controls against illegal resale. By leveraging digital technology and reducing the workload for stores, the range of tasks that can be outsourced in the tax-free sales process is broadened. This is anticipated to help address issues such as labor shortages and language barriers, and in turn, stimulate tax-free consumption in local regions.
Speaking to the press, Chairman Akita of the Japan Duty Free Association drew a comparison with other countries. "I traveled to Europe this past April and experienced the refund process at the airport, which was extremely smooth. I have high hopes for this being implemented in Japan," he said. Noting that the procedure is already familiar to many international travelers, he commented, "In some ways, Japan's old system was a bit unusual. I believe this will make the process much smoother."
Regarding purchasing trends for high-value items, he analyzed, "I don't believe this new system will cause any sudden changes in customer purchasing behavior." He anticipates that demand for items like jewelry, watches, and luxury brand bags and shoes will remain largely unchanged.
On the other hand, he pointed out that for consumables such as high-end cosmetics and liquor, the removal of the 500,000-yen limit and the special packaging requirement will be a positive factor. "The time saved on packaging will be a significant benefit for customers. I expect it will create more opportunities for them to shop at the same time," he added with anticipation.
