Apple Japan must pay the equivalent of 92 million euros in back taxes
Apple’s Japanese branch must pay 13 billion yen (92.03 million euros) in back taxes for wholesale sales of iPhones and other Apple devices to tourists who were incorrectly exempted from consumption tax, let it be known Nikkei.
Bulk purchases of iPhones by overseas buyers have been uncovered at some Apple stores, with at least one transaction involving an individual buying hundreds of phones at one time and the store failing to tax at least one possible reseller.
Japan allows tourists staying for less than six months to purchase goods without paying the 10% consumption tax, but the exemption does not apply to purchases for resale. According to Nikkei, Apple Japan filed an amended tax return.
Apple’s tax arrears ruling comes shortly after Tim Cook visited the country. The leader documented his stay there with several messages and photos shared on Twitter. This notably involved a meeting with Sony, confirming in passing that the Japanese company provides photo sensors for the iPhone.
On the other hand, Japanese authorities have recently pressured Apple to support multiple iPhone app stores. Apple also saw record declines in App Store revenue in Japan and other countries. This issue could be compounded by increased competition as Apple intends to allow third-party app stores and sideloading, starting in Europe, with iOS 17.
