THE WHAT? Japan will overhaul its tax-free shopping system from November 1, 2026, replacing immediate tax exemptions at the point of sale with a refund-based system for international visitors.

THE DETAILS Under the new system, tourists will pay the full price, including consumption tax, when making purchases and apply for a refund through customs when departing Japan, prior to checking in for their return flight. Passports will still be presented at the point of purchase, with transaction information recorded electronically for verification. Japan will also remove the distinction between general goods and consumables, eliminate sealed-packaging requirements for consumables and extend the period for taking eligible purchases out of Japan from 30 to 90 days. Consumable products used while in Japan will not qualify for a tax refund.

THE WHY? The changes will alter the tax-free purchasing process for international shoppers and require Japanese beauty retailers and brands to adapt their checkout procedures and customer communications, particularly in tourism-driven beauty retail and travel retail locations.

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Source: Global Cosmetics News (https://www.globalcosmeticsnews.com/)

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