J&J Tax Free and GMO Payment Gateway Form Strategic Partnership for New Tax Refund Scheme

Strategic Alliance between J&J Tax Free and GMO Payment Gateway

On November 28, 2025, J&J Tax Free and GMO Payment Gateway established a strategic business partnership aimed at developing a new service to digitize the refund process associated with Japan's tax refund system for foreign tourists. Set to take effect in November 2026, this initiative aligns with the upcoming "Refund Method", which seeks to streamline how tax refunds are processed, ensuring tourists receive timely refunds for consumption tax paid during their visit.

Background and Overview

Japan's tax-free shopping system is undergoing a significant overhaul, transitioning from the current method, which sells goods at tax-exempt prices at the time of purchase, to a new method that will require taxes to be paid upfront. Refunds will then be processed when travelers leave the country, thereby addressing issues of fraud and promoting transparency in tax legislation. The new policy aims to bolster Japan's tourism industry, which aspires to attract 60 million foreign visitors and generate a travel expenditure of 15 trillion yen by 2030.

The shift to the Refund Method is expected to enhance the shopping experience for inbound tourists, as shopping expenditures are a significant portion of their travel spending. This transition will also provide an opportunity for local economies to benefit from increased tourism spending. However, for tax-free shops, this new approach requires a substantial upgrade in back-end processes. Retailers will need to accurately record passport and purchase data, communicate with the National Tax Agency, and manage refunds and fund transfers more efficiently.

Advantages of the Partnership

J&J Tax Free has been at the forefront of facilitating tax exemption processes since 2013, when it began offering the J-TaxFree system. As the tax exemption policy evolves, the company has continued to provide updated services that support retailers across various industries, including department stores, electronics retailers, drugstores, and local souvenir shops. This wealth of experience and deep understanding of tax regulations makes J&J Tax Free a trusted partner for numerous tax-free stores nationwide.

In conjunction with the transition to the Refund Method, J&J Tax Free will now offer multi-language support available 24/7 to enhance foreign visitors' shopping experiences and improve the efficiency of tax exemption procedures. This collaboration aims to significantly boost the sales of tax-free products by ensuring that processes are accurate and efficient.

On the other hand, GMO Payment Gateway is a leading payment service provider in Japan, with over 21 trillion yen in annual transaction volume. The organization specializes in payment solutions that support online transactions, cashless payments, and digital transformation initiatives across various sectors. As an authorized money transfer operator, GMO-PG possesses the operational expertise and foundation necessary to provide seamless income and expense management for businesses.

By combining the strengths of both companies, the newly developed service will automate refund-related financial transactions and settlement operations in tax-free stores. This automation facilitates a proper and efficient operation, which is essential for delivering a secure and comfortable shopping experience for inbound tourists. Both companies aim to provide safe and reliable services to tax-free shops and foreign visitors as the new tax refund system takes effect.

Differences Between Current and Refund Method

Current System	Refund Method (Effective November 1, 2026)
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Tax exemption at the point of sale	Tax paid upfront; refund processed upon departure

Conclusion

In summary, the strategic partnership between J&J Tax Free and GMO Payment Gateway seeks to revolutionize the tax refund process for inbound travelers. By implementing a digitized and efficient system, both companies are committed to supporting the growth of the inbound tourism market and contributing positively to Japan’s economy through enhanced shopping experiences and efficient tax refund procedures.

For more information about J&J Tax Free, visit here.