“Duty-free” and “tax-free” get used interchangeably by travelers, but in Japan they describe two different systems with different rules. Knowing which one you’re standing in front of changes what you should expect at checkout.

How to tell duty-free and tax-free apart

  1. City stores, department stores, and most shops are tax-free, not duty-free. These are the stores covered by the refund system: you pay full price including tax, the store registers your purchase, and the tax comes back to you after you leave Japan.
  2. Airport shops past security are duty-free. Once you’ve cleared the security checkpoint into the restricted area, shops there sell goods tax-free immediately, at the counter, with no refund process involved. What you pay is what it costs, no waiting.
  3. The new refund system only applies to the tax-free side. If you’re shopping anywhere before you reach airport security, meaning any city store, mall, or even shops in the airport terminal before the checkpoint, the pay-now-refund-later process applies.
  4. Don’t expect a refund on airside purchases. If you buy something duty-free past security, there’s nothing to claim later. That transaction is already complete and already tax-free.
  5. When in doubt, ask which system a shop uses. Some larger airports have both tax-free shops before security and duty-free shops after it, so the location of a specific counter, not just “the airport” as a whole, decides which rule applies.
  6. Plan your major purchases around this if timing matters to you. If you’d rather have an item tax-free on the spot without any wait, and you’ll pass it regardless, that’s a duty-free-only advantage, not something the refund system offers.

Once you’ve confirmed you’re in tax-free territory, see how to check whether a specific store is eligible before you buy.

Show this in Japanese日本語カードを表示 — hand your phone to the staff

店員・係員のみなさまへ:外国からのお客様がこのカードを提示しています。

【状況】

海外からの旅行者です。この店舗での購入が出国時の税還付の対象になるか確認したいと考えています。

【お願い】

この店舗での購入が、出国時の税還付(リファンド方式)の対象になるか教えていただけますか。

【公式情報】

国税庁:輸出物品販売場制度のリファンド方式への見直し

店員・係員のみなさまへ:外国からのお客様がこのカードを提示しています。

【状況】

海外からの旅行者です。この店舗での購入が出国時の税還付の対象になるか確認したいと考えています。

【お願い】

この店舗での購入が、出国時の税還付(リファンド方式)の対象になるか教えていただけますか。

【公式情報】

国税庁:輸出物品販売場制度のリファンド方式への見直し

Why these are two separate systems

Duty-free shopping is tied to customs law around goods that cross a border: because airside airport shops sit past the security and immigration checkpoint, anything sold there is treated as already leaving the country, so the tax and duty exemption applies immediately at the register. There’s no need to verify anything further because the physical boundary itself does the verification.

Tax-free shopping in the city works differently, precisely because a city store has no way to confirm a purchase is actually leaving Japan. That’s the entire reason the new refund process exists: pay the tax upfront, register the sale electronically, and only release the refund once a customs check at the airport confirms the goods are being exported. The store’s location, inside the country versus past the border checkpoint, is what determines which of these two logics applies.

This is also why nothing about the 2026 refund change affects airport duty-free shops at all. They were never part of the tax-free purchase-then-refund loop to begin with; they’re a completely separate retail category governed by different rules. If a shop’s status isn’t obvious from where it’s located, the official pages below are the most reliable way to confirm which system you’re dealing with.