Japan's 2025 Tax Reform: A Shift Towards Refund Application for Tourist Purchases

Starting in the year 2025, Japan is set to introduce a significant change in its tax regulations, aligning itself with systems seen in other nations. This adjustment will transform the way tourists benefit from tax savings, moving from the current tax-exemption at the point of purchase to a refund application system for eligible purchases.

Under the revised policy, tourists will no longer enjoy immediate tax exemptions while shopping. Instead, they will be required to retain receipts for their purchases and submit a refund application for items bought within a 90-day window. This shift aims to streamline the process and ensure uniformity with global standards, while also addressing administrative efficiencies.

What Does This Mean for Travelers?

For tourists, the process will now involve:

1. Keeping detailed purchase records and receipts for qualifying items.

2. Submitting a refund request before the 90-day purchase period expires.

3. Likely receiving reimbursements directly through designated platforms or bank transfers.

   
   

While the immediate convenience of tax-exempt shopping might be missed, the new system offers the potential for greater accountability and flexibility for both shoppers and retailers.

Stay informed as more details and guidelines for the refund application procedure are released closer to 2025. This change marks another step in Japan’s evolution toward international best practices in tax and commerce.

The shift to a refund application system for foreign tourists will take effect starting November 1, 2026