TOKYO - The operator of Don Quijote, a discount store chain popular among foreign visitors, has started providing instructions on new tax-free procedures in multiple languages following Japan's shift from in-store tax exemption to a refund method from this month.
At a Mega Don Quijote in Tokyo's Shibuya district in early November, store clerks handed out flyers to inbound tourists at the cashier, notifying them that they need to claim tax refunds upon departure from the country under the new system.
The major overhaul is aimed at combatting abuse of the tax-free system by purchasers, such as reselling items before leaving Japan.
Previously, foreign visitors could buy items at tax-exclusive prices by showing their passports at eligible shops.
Under the new system that came into force on Nov. 1, they now need to pay the consumption tax upfront and then claim refunds at airports and seaports after they complete customs inspections.
Spending by foreign visitors to Japan hit an all-time high of 9.46 trillion yen ($59.7 billion) in 2025.
An American man shopping at the Shibuya store told a reporter that the new system requires a little extra effort from travelers like him, though he would have no trouble navigating it.
A daily limit of 500,000 yen worth of tax-free purchases of consumables per store, as well as a requirement for goods to be specially packaged with sealed transparent bags designed to prevent resale were eliminated under the new system.
The Mega Don Quijote store has expanded its section for high-end liquors, among other lineup changes, in expectation of welcoming more high-value customers.
"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.
