Japan Retailers Brace for Major Overhaul of Tax-Free Tourist Shopping Rules

Department stores fear that the transition from tax exemptions to refunds could dampen demand for high-end goods.

Japan’s roughly 64,000 tax-free shops are preparing to transition from tax exemptions to refunds for foreign customers. (Photo by Hazumu Urushiyama)

Nikkei staff writers

October 22, 2026 05:50 JST

TOKYO — Japan is set to overhaul its tax-free shopping system for international visitors in November to combat domestic reselling. However, some retailers worry that the transition from direct exemptions to a refund-based process could deter big-spending tourists.

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