Tax-Free and Duty-Free in Japan

International tourists traveling in Japan can do tax-free shopping, and not only at duty-free shops located in airports or maritime ports’ international areas. The "Tax Free" program in Japan is indeed directly available in duty-free shops that can be found throughout the archipelago and in major touristic areas, starting with the capital Tokyo.

Exemption of Japanese VAT

A duty-free purchase in Japan consists in buying goods that are exempted of the "consumption tax", called shohizei in Japanese and equivalent to the VAT (Value-Added Tax). It is an indirect tax payed by consumers.

The Japanese VAT currently amounts to 10 %, or 8 % for non-durable goods since October 2019. While not the highest among the OECD countries, its exemption is nonetheless a financial benefit that can help saving on the budget and that can be associated with, for example, an advantageous Yen 💴 exchange rate at the time of travel.

To be fair, Japan often feels like a huge mall. With its ¥100-yen shops, gashapon or konbini that can be found at almost every corner of each street; shotengai shopping arcades near all touristic attractions; and the gigantic shopping centers spreading over several floors, especially near train 🚅 stations, a traveler’s wallet tends to slim out very fast!

Since April 1rst, 2021, all prices must be displayed all taxes included in Japan:

• Exclusive of tax is zeinuki (税抜き) or menzei (免税);
• All taxes included is zeikomi (税込);
• Zei (税) is the Japanese word for taxes and duties in Japan and was elected the Kanji of the year in 2014 and 2023.

On a side note, price negotiation or bargaining are not a cultural norm in Japan.

Tax-free shopping when traveling in Japan

Several rules govern the tax-free shopping system in Japan:

• "Tax Free" Japan program is only available to foreign consumers staying in Japan under a temporary visitor visa (usually for 3 to 6 months stays at most).
• Purchases benefiting from a tax refund are registered and must be carried personally by the buyer during their trip in Japan. Therefore, the day of purchase is important as it imposes a specific time frame according to the type of tax-free item purchased, or at least the respect of the maximum length of stay stated on the passport when leaving the territory. Furthermore, sending tax free products by international parcels through the Japanese Post or private carrier is not possible anymore since April 1rst, 2025 ; separate shipping is not allowed.
• Buyers must show their passport when purchasing, and may be asked to sign a short form and have the purchase receipts stapled to the passport.
• Purchases must be made in one of the shops participating in the "Tax Free" program (免税店 menzei-ten), or for those that are part of a network or located in a shopping mall that have a dedicated corner "Japan. Tax-free Counter", with sometimes English-speaking staff. The comprehensive list of duty-free shops is available on the official website of duty-free shopping in Japan.

Not all shops offer a tax refund to their foreign customers. When there is no signage or dedicated counter, it is necessary to check case by case before paying. The 7-Eleven brand offers tax-free services under specific conditions, but not all shops are formerly required to do so. Naturally, big cities such as Tokyo, Kyoto or Osaka are often the best places to get tax-refund services.

Among the most popular brands / shops offering tax-free services, can be mentioned:

• Don Quijote (Donki) for discount souvenirs and the unique ambiance of its stores;
• Matsumoto Kiyoshi, for skincare products and toiletries;
• Uniqlo for seasonal clothing;
• Bic Camera and Yodabashi Camera for high-tech and electronics among others; and,
• Large Japanese department stores such as Daimaru, Takashimaya, Isetan.

Some shops even offer additional discount coupons that add up with the tax refund on some specific product categories for further savings.

Until October 2026: immediate VAT exemption upon purchase

Currently, and provided all the legal conditions are met, foreign tourists traveling in Japan can do tax-free shopping directly at the store, that is to say benefit from an immediate 10% (or 8%) discount on the price displayed. When paying the full price is still required, the consumption tax amount can be refund directly at a "Tax Free" counter.

Since late November 2015, the minimum amount to benefit from a tax refund is ¥5,000 (~US$31.59) per shop (or mall) and per day.

There also are 2 categories of tax-free goods:

• The non-consumable goods, without expiration date, such as high-tech or cultural products, artisanal items, clothing and leather goods, watches and jewelry (etc.) are not subjected to a maximum purchase amount.
• However, consumable goods purchased tax-free are subjected to a maximum amount of ¥500,000 (~US$3,159) and must be sealed at the shop. Indeed, to be eligible to the VAT exemption, they can’t be consumed in Japan and must leave the territory within 30 days following the day of purchase. It mainly concerns the omiyage souvenirs of local food specialties, as well as skincare products and drugs.

Starting November 1rst, 2026: VAT refund only at the airport

With the new rules regarding the Japanese consumption tax refund, all purchases made from November 1rst 2026 in Japan must be payed all taxes included. Showing the passport is still required upon purchasing in a tax-free shop so as the vendor / seller can start the process for VAT refund, that must be confirmed by Japanese customs 🛂 at the airport upon leaving Japan.

The tax is refunded after departure is confirmed, and after the customs’ approval, and it will take on average:

• 1 to 2 weeks for a refund on a credit card;
• 2 to 4 weeks for a refund by bank transfer.

It means the end of the immediate VAT exemption when shopping in Japan for foreign visitors. This new regulation was decided after finding misuses, such as illicit trade of tax-free goods from Japan.

Therefore, we recommend to:

• Keep all proofs of purchase (receipts, detailed invoices) to make sure to confirm the VAT refund at the Japanese customs’ office at the airport of departure;
• Make sure to allow extra time at the airport when leaving to go through the required paperwork;
• Don’t unwrap the goods eligible to tax-refund and put them in your carry-on luggage so you can provide proof in case of an inspection;
• Show all the goods listed on the proofs of purchase. If a good is missing, you will not benefit from the tax refund for any of the goods.

Since April 1rst, 2023, a tax-refund functionality is available on the Visit Japan Web app, including the generation of a QR code after the immigration step, to facilitate the validation of customs when leaving. It allows the traveler to make a self-check out on an automatic terminal; in the same way as when arriving in Japan, when doing the advance immigration procedure (scanning a QR code).

This new procedure is implemented together with the lift of the specific rules regarding consumable goods: there is no need of a sealed wrapping anymore and no maximum amount of purchase. The distinction by product categories disappears. However, the minimum ¥5,000 (~US$31.59) purchase amount on 1 day is still required.

Don’t forget custom allowances

If you need a limit to your shopping spree, remember that all countries have a custom allowance, that is to say a limitation on the goods that can be brought in without paying a tax or a duty. For example, when coming back home, U.S. travelers are allowed a maximum of $800 and U.K. travelers £390 per person.

There are also various limitations targeting goods brought back by an adult (18 or 21 years old depending on the country), such as cigarettes or alcohol (and not limited to these items). In any case, make sure to check your country’s custom allowance before planning your purchases.

While customs inspections at the airport may not be systematic, be informed and ready for when they happen.

Ultimately, it is up to each individual to assess the benefits of the "Tax Free" program in Japan and if it is worth using it. Especially from November 1rst, 2026, is the money saved worth the additional time spent in paperwork? The cost of purchase may also vary according to the Yen exchange rate and the means of payment used. Travelers can still pay all taxes included without asking for a VAT refund and therefore without worrying about custom procedures and minimum or maximum amounts of purchase.

Our last tip is to make the bulk of souvenir shopping at the end of the trip, so as not to be overloaded and to make sure, regarding food purchases, that they can be consumed for the longest time after coming back from Japan.