In brief
Japan replaced its former in‑store tax‑exemption system with a refund‑at‑departure model that takes effect from November 1. In Shibuya, Don Quijote clerked foreign visitors with handouts in many languages, explaining the new steps. The change, aimed at curbing stealing and resale, also coincides with record‑high overseas tourist spending and higher‑value shopping at the chain’s stores.
Japan’s tax‑free rules changed this month. Instead of buying products tax‑exclusive in the shop, foreign visitors now pay the consumption tax when they purchase and then claim a refund at an airport or seaport after completing customs checks. Don Quijote, a discount chain that attracts tourists, began handing out multilingual flyers at its Mega Shibuya outlet in early November to explain the new steps.
The flyers tell shoppers that they must keep their receipts, show their passports, and find the refund counters at their departure airport to get the tax back. The change was designed to stop abuse of the older system, where people could buy goods tax‑free and then resell them in Japan.
"It takes time to explain the system (to customers) but once we get used to it, the burden will be reduced," a Don Quijote official said, and handed the flyers along with a guide on which airports host refund desks.
Tourist spending in Japan reached a record 9.46 trillion yen ($59.7 billion) in 2025, so the rule applies to a large amount of purchases each year. The new guidelines also require shoppings of at least ¥5,000 (excluding tax) per store in a single day and the presentation of a passport at the shop, according to Bloomberg’s coverage of the policy.
While the refund‑at‑departure system adds a step for travelers, its goal is to keep tax‑free shopping fair and to reduce cases of counterfeit or resale of goods. Don Quijote’s expanded high‑end liquor section shows it is also attracting shoppers who want to buy more expensive items and use the new refund process.
