Japan Shifts to “Pay Now, Refund Later” Tax-Free Tourist Shopping from November
Starting November 1, Japan's new tax-free shopping system will require international visitors to pay consumption tax at the time of purchase and claim refunds upon clearing customs or after leaving the country.
Japan is set to shift to a "pay now, refund later" tax-free shopping system starting November 1, 2025, requiring international visitors to pay consumption tax at the time of purchase and claim refunds upon departing the country. The new system will eliminate the distinction between general and consumable goods, as well as the spending cap of ¥500,000 per store, but travelers will still be limited to what they can personally carry out of the country upon departure.
The new policy aims to address concerns over the misuse of tax-free shopping, with some items suspected of being resold within Japan. Despite the increase in international tourism, the consumption tax exemption has been a subject of debate, with some calling for its abolition to boost international competitiveness.
Brief written by urgent.news from Nippon.com's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
