Japan to implement new tax refund system for foreign tourists in November 2026

Japan will implement a new consumption tax refund system for foreign tourists starting November 1, 2026. Moving away from the current practice of deducting tax at the point of sale, the new “Refund System” requires travelers to pay the full tax-inclusive price upfront and claim the refund after customs confirmation at the airport or port upon departure.

To successfully claim a refund, travelers must use a dedicated kiosk to scan their passports and complete customs verification before checking in their luggage. Once luggage is handed over to the airline, goods can no longer be inspected, which may result in the loss of refund eligibility. Refunds will not be issued as cash at the airport but will be processed via credit card chargebacks, electronic payments, or bank transfers by the retailer or a third-party provider.

Major retailers, including Don Don Donki, Bic Camera, and Takeya, have announced they will waive service fees for online credit card refunds to mitigate concerns regarding increased shopping costs. Seven major airports, including Narita, Haneda, and Kansai, will support the system through dedicated kiosks and the Visit Japan Web (VJW) platform.