Guide to the New Duty-Free System

Effective 01 November 2026 : Practical Measures for the Introduction of the Post-Pay System

1. Overview of the New Duty-Free System

Effective 01 November 2026, Japan’s duty-free system will undergo significant changes.

The system will shift from the previous “tax-free at purchase (immediate refund)” method to the “post-pay system (refund system)”, in which consumption tax is included in the payment at the time of purchase, and the refund is issued after the traveler’s departure is confirmed.

As a result of this change, the timing of refund payments will change as follows :

• Old System: Tax-free processing at the time of purchase (completed on the spot)

• New System: Refund paid after the traveler’s departure is confirmed (post-pay)

2. Key Point: Refunds Are Paid “After Departure”

The most significant change under the new system is that refunds will be received after the traveler’s departure.

Consequently, duty-free shops will meet the following new operational requirements :

• Management of refund payments after departure verification

• Handling remittances to overseas residents

• Payment processing supporting multiple currencies and nationalities

• Digitization and automation of refund operations

Unlike the traditional “duty-free processing completed at the store,” “how to establish post-departure payment operations” has become a key challenge.

3. Required Actions for Duty-Free Shops

Under the new system, duty-free shops are required to take the following actions :

(1) Redesigning the Refund Payment Process

• Establishing a payment flow following departure verification

• Managing the linkage between customer information and refund data

(2) Handling International Money Transfers

• Support for transfers in various national currencies

• Securing diverse receipt methods, such as banks and digital wallets

(3) Streamlining Operations

• Reducing manual refund processing

• Automation through system integration

4. New Challenges : Achieving a Seamless Refund Experience

Under the new system, the following become key themes for duty-free shops :

• How to pay refunds smoothly

• How to reduce the stress travelers face when receiving refunds

• How to reduce the operational burden on stores

In particular, since travelers have already departed the country, a “reliable international remittance infrastructure” is essential.

5. KABAYAN INTERNATIONAL’s Initiatives

KABAYAN International Ltd. is building a remittance network to countries around the world and is promoting the development of international remittance infrastructure in the tax refund sector.

Currently, the company is expanding its network in the following areas :

• Expansion of the remittance network to include Asia, the Middle East, and Europe

• Establishment of a remittance infrastructure for multinational travelers

• Development of a remittance scheme dedicated to tax refunds

Through these efforts, the company aims to enable faster and more seamless payment of tax refunds from duty-free shops to international travelers.

6. Proposed Scheme (Concept)

The ideal workflow under the new system is as follows :

1. Purchase at a duty-free shop (payment includes consumption tax)

2. Confirmation of departure

3. Determination of refund amount

4. Overseas remittance via the KABAYAN International remittance network

5. Traveler receives funds in their home country

This system will digitize and automate duty-free shop refund operations, delivering seamless customer experience.

7. Summary

Under the new system, key challenges for duty-free shops will be :

• “Payment of refunds after departure”

• “Overseas remittance support”

• “Digitization of operations”

will be key themes.

In addressing these challenges, KABAYAN International has the potential to contribute as an infrastructure for refund payments leveraging its global remittance network.

8. Summary

Please feel free to contact us for consultations regarding compliance with the new system or the development of remittance schemes.

• Tel No. : 03-5817-8917

• E-mail : kabayanjp@eui.money

(Global remittance network currently under development)