Guide to Preparing for the Refund Method
Overview
The Ministry of Economy, Trade and Industry created the “Guide to Preparing for the Transition to the Refund Method” for retailers operating tax-free shops in connection with the transition to the refund system. From November 1, 2026, the tax exemption system will change to the refund method, under which a tax-free sale is completed when it is confirmed that foreign travelers and others have taken the eligible goods out of Japan upon departure. The guide covers approved transmitting and receiving operators, retailers’ own systems, guidance for travelers, and preparations when retailers handle tax-free procedures themselves. An information session using Microsoft Teams and an archived recording are also planned.
Key points
- The Ministry of Economy, Trade and Industry created the “Guide to Preparing for the Transition to the Refund Method” for retailers operating tax-free shops.
- From November 1, 2026, the tax exemption system will change to the “refund method.”
- A tax-free sale is completed when it is confirmed upon departure that the eligible tax-exempt goods have been taken out of Japan.
- An online information session using the guide will be held on Microsoft Teams, and an archived recording is also planned.
Overview
In connection with the transition to the refund system, the Ministry of Economy, Trade and Industry created the leaflet “Guide to Preparing for the Transition to the Refund Method,” which summarizes the system and the actions required for retailers operating tax-free shops. After the system change, a tax-free sale will be completed when it is confirmed that foreign travelers and others have taken the eligible goods, for which procedures were conducted at a tax-free shop, out of Japan upon departure.
The guide organizes the matters that tax-free shops should check and prepare for the system change, and an online information session explaining its contents will also be held.
Impact
Retailers operating tax-free shops will need to take action in response to the system change. The conditions for completing a tax-free sale will change to include not only procedures at the time of sale but also confirmation that foreign travelers and others have taken the eligible tax-exempt goods out of Japan upon departure.
Details
The preparation guide organizes what tax-free shops should do by using checklists and case distinctions. The main items are confirming matters with approved transmitting and receiving operators, checking the shop’s own system, points to note regarding guidance for travelers, and preparations when a tax-free shop handles tax-free procedures itself.
The online information sessions will be held on Microsoft Teams. The first will take place from 2:00 p.m. to 3:30 p.m. on October 8, 2026; the second from 10:00 a.m. to 11:30 a.m. on October 14; and the third from 2:00 p.m. to 3:30 p.m. on October 19. An archived recording is also planned for people who cannot attend at those times, and details should be confirmed in the information sheet for the sessions.