Japan's Tax-Free Shopping Changes on 1 November: You Now Pay the 10% Up Front

Until 31 October, shopping tax-free in Japan was simple. You showed your passport at the counter and paid the price without the 10% consumption tax. Nothing to claim, nothing to chase.

From 1 November 2026, that ends. You pay the full price, tax included, and the tax comes back to you only after a customs check at the airport on your way out. If anything goes wrong at that check, you don't get it back.

That matters to a lot of Indian travellers right now. JNTO counted 230,600 visitors from India between January and July 2026, up 21.7% on the year before, and Japan is one of the few places where Indians reliably come home with electronics, cosmetics and a second suitcase.

The short version: carry about 10% more yen for anything you plan to buy tax-free, register a refund method you can actually use, and do the airport check before you check in your bags. The rest of this guide shows how it works and what it costs in rupees.

 

 

What Changes on 1 November

The rule follows the purchase date, not your travel date. Anything bought up to 31 October uses the old method. Anything bought from 1 November uses the new one, even on the same trip.

 

Step	Until 31 October 2026	From 1 November 2026
At the shop	Tax-free price, or tax refunded at the store's counter	You pay the tax-inclusive price and register how you want the refund paid
At the airport	Customs check after security, in the restricted area	Customs check before security, in the public departure hall
Time limit	Leave Japan with the goods	Leave Japan within 90 days of the purchase
The refund	Not needed, you never paid the tax	Paid by the shop or its refund operator after customs confirms the export

Source: Japan Tourism Agency, Refund Method and the joint Tourism Agency, METI, National Tax Agency and Japan Customs leaflet.

 

Japan's consumption tax is 10% on most goods and 8% on food and drink other than alcohol, so the amount you wait for depends on what you buy.

 

How the Refund Works, Step by Step

1. At the shop. Look for the "Japan. Tax-free Shop" sign. Your purchases at one store on one day must total at least ¥5,000 before tax. Show your passport, pay the full price, and register a refund method. The Tourism Agency's leaflet mentions credit cards, and the options depend on the shop.
2. Keep every purchase together. Customs checks one receipt at a time. Keep the receipts and the goods unopened, and in your hand luggage.
3. At the departure airport, before check-in. Scan your passport at a tax-free procedure terminal. A green result means you are done. A red result means a customs officer wants to see the goods, so you need them with you, not inside a checked suitcase.
4. Or use Visit Japan Web. At Narita, Haneda, Kansai, Chubu, New Chitose, Fukuoka and Naha, you can complete the procedure through Visit Japan Web in designated departure lobbies instead of at a terminal.
5. If you connect through a domestic flight, do the whole procedure at the airport you leave Japan from, not the one you start at.
6. The refund arrives through the method you registered, paid by the shop or a refund operator it appoints. The official guidance does not set a deadline for payment, so ask at the shop how long it takes.

 

What It Costs in Rupees

Take a camera priced at ¥50,000 before tax. Under the old system you paid ¥50,000 at the till. From 1 November the till charges ¥55,000, and ¥5,000 comes back later if everything goes right.

Here is what that ¥55,000 costs on the day, three ways.

 

How you pay	Rate used	Charged at the till
Forex card loaded with yen	₹61.90 per 100 yen	₹34,045
Indian credit card, paying in yen	₹60.39 per 100 yen, plus 3.5% markup and 18% GST on the markup	₹34,587 (₹33,215 + ₹1,163 + ₹209)
Yen cash bought in India	₹62.90 per 100 yen	₹34,595

Rates: JPY mid-market ₹60.39 per 100 yen and the Matrix Forex JPY card (₹61.90) and cash (₹62.90) rates, from the live rate feed at 3:47 PM IST on 12 October 2026. The credit card line assumes the card network's rate equals the mid-market rate, which is close but not exact, and a 3.5% markup typical of regular Indian cards. Rates move through the day.

 

 

Three things follow from the table.

You need about 10% more yen up front. On ¥50,000 of shopping, that is roughly ₹3,100 more on the card than the old system needed. If shopping is part of the plan, load or carry for the tax-inclusive price.

On an Indian credit card, you pay the markup on the tax too. The 3.5% and its GST are charged on the full ¥55,000, including the ¥5,000 you will get back. That part costs about ₹125. The refund itself is converted back to rupees at whatever rate applies on the day it reaches your card, so ask your bank how it handles refunds of foreign transactions.

On a yen forex card, a refund to the same card normally comes back in yen, so there is no conversion either way. Spend it on your next trip, or sell it back when you are home. Check first that the shop can refund to the card you paid with.

Cash costs the most for large purchases, and it raises a practical question: if you paid in notes, ask how the refund will be paid before you buy, because cash refunds depend on the store.

 

The Rules That Cost People Their Refund

These come straight from the official leaflet, and each one voids the refund.

Using something before you leave. Special sealed packaging for consumables is gone, but if you eat, drink or use food, drinks or cosmetics in Japan, they are not eligible.

Missing one item from a receipt. Customs checks per receipt. If even one item on it is missing, nothing on that receipt qualifies. Buy the snacks you plan to eat on a separate bill.

Checking in your bags first. The check happens before security. Get a red result after your suitcase is gone and, depending on the airline, you may not be able to get it back in time.

Leaving after 90 days. The goods must leave Japan within 90 days of the purchase date.

Buying more than you can carry. Tax-free quantities are limited to what you can personally carry out of Japan.

High-value items without papers. For anything costing ¥1 million or more before tax, customs may ask for a certificate of authenticity or warranty, so keep it with the item.

Clearing customs and then leaving the goods behind. If goods pass the check but are not taken out of Japan, the tax is collected and a penalty applies.

 

Will You Get the Full 10% Back?

Not necessarily.

Shops can appoint a refund operator to pay you, and according to Unseen Japan's reading of the Tourism Agency's FAQ, the law sets no rules on who pays that operator's commission and no cap on it. If the operator deducts a fee, you receive less than the full tax. The same article notes that a refund does not have to arrive as cash, and that some shops may offer coupons or points, which are of little use if you are not coming back.

So before you pay, ask two questions at the counter: how will the refund be paid, and will anything be deducted from it. If the answer is store points, decide whether the purchase is still worth it at the full price.

 

Two More Japan Charges to Budget For in 2026

Departure tax tripled. Japan's International Tourist Tax rose from ¥1,000 to ¥3,000 per departure on 1 July 2026, according to the Japan Tourism Agency. It is collected through your air fare, so you will not pay it at the airport. Tickets issued on or before 30 June 2026 keep the old ¥1,000 rate, and infants under 2 are exempt.

Kyoto's lodging tax went up on 1 March 2026. It is charged per person per night, based on the room rate:

 

Accommodation fee per person per night	Tax per person per night
Under ¥6,000	¥200
¥6,000 to ¥19,999	¥400
¥20,000 to ¥49,999	¥1,000
¥50,000 to ¥99,999	¥4,000
¥100,000 or more	¥10,000

Source: Kyoto City official tourism site.

 

For a family of four in a mid-range Kyoto hotel at ¥25,000 per person, that is ¥4,000 a night on top of the room, usually paid at check-in. Our Kyoto travel guide covers what else to budget for there.

 

How to Carry Money for Japan Now

The new system rewards travellers who pay in yen they already hold.

A forex card loaded with yen fixes the rate once, before you fly, and keeps any refund in yen. It works almost everywhere in Tokyo, Osaka and Kyoto, and at the ATM networks that take foreign cards, which our guide to ATMs in Japan sets out.

Some yen in cash still matters for small ramen shops, temples, older vending machines and rural inns. Japan issued new ¥1,000, ¥5,000 and ¥10,000 notes in 2024, and both series are valid; our guide to Japanese yen notes shows what to check.

Always choose yen at the card machine. Some shops and ATMs in Japan offer to charge you in rupees. That is dynamic currency conversion, and it adds a markup before your bank adds its own.

Know the cash limits on both sides. RBI lets you buy up to USD 3,000 in foreign currency notes per trip, about ¥475,000 at today's rates, with the rest on a card; our guide to RBI rules on carrying foreign currency has the detail. At the other end, Japan Customs requires you to declare cash and other means of payment above ¥1 million when you enter or leave.

Coming home with leftover yen? You can keep some for the next trip or sell it back; our guide to leftover foreign currency explains the RBI limits on holding it.

The Japan travel guide covers the rest of the trip, from rail passes to how much cash a day really needs.

 

Common Mistakes

Budgeting for the tax-free price. From 1 November the till price includes tax. Carry or load for it.

Packing tax-free goods in the checked suitcase. Do the terminal check first, then check in.

Opening the skincare in the hotel. Anything used or consumed in Japan loses its refund, and one missing item voids the whole receipt.

Not asking how the refund is paid. Card, cash, points or something else: you register it at the till, so decide then.

Assuming the refund is a full 10%. Ask whether a fee is deducted.

Pressing "INR" at the card terminal. It costs more than paying in yen, every time.

 

Frequently Asked Questions

When does Japan's new tax-free system start?

It applies to purchases made on or after 1 November 2026. Purchases made up to 31 October 2026 follow the old system, where the tax was removed at the till. The rule follows the purchase date, so one trip can involve both.

 

How do I get my tax refund in Japan from November 2026?

Pay the tax-inclusive price at a tax-free shop and register a refund method there. At the airport or seaport, before checking in your luggage, scan your passport at a tax-free procedure terminal and, if it shows red, let customs inspect the goods. The shop or its refund operator then pays the refund through the method you registered.

 

What is the minimum purchase for tax-free shopping in Japan?

Your purchases at one store on one day must total at least ¥5,000, excluding tax. You must also leave Japan with the goods within 90 days of the purchase date.

 

Do I get the full 10% back?

Not always. Shops can use a refund operator, and the law does not cap or assign the operator's commission, so a fee may be deducted. Some shops may also pay refunds as points or coupons rather than cash. Ask how the refund is paid, and whether anything is deducted, before you buy.

 

Can I check in my bags before the tax-free procedure?

You should not. The customs check takes place before security, and a red result at the terminal means an officer needs to see the goods. If they are already in a checked suitcase, you may not be able to retrieve it, and you lose the refund.

 

What if I use some of the items while I am still in Japan?

Food, drinks and cosmetics used or consumed in Japan are not eligible. Customs checks one receipt at a time, and if any item on a receipt is missing, none of the items on that receipt qualify.

 

How much is Japan's departure tax now?

¥3,000 per person per departure from 1 July 2026, up from ¥1,000. It is included in your air fare. Tickets issued on or before 30 June 2026 keep the ¥1,000 rate, and infants under 2 are exempt.

 

Land With Yen, Leave With Your Refund

The new system works best for travellers who already hold yen and know exactly what each purchase costs in rupees. Matrix Forex is an RBI-authorised Authorised Dealer Category-II (licence NDL-ADII-0023-2023). We load forex cards with yen alongside other currencies, sell Japanese yen in cash with delivery in the cities we serve, and show you the rate before you pay. Start at buy forex, budget 10% more for the shopping, and do the airport check before you check in.