Japanese Consumption Tax

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Created Sep ’15

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Regarding the "iTunes Connect: App Store Changes for China and Japan" mail iTunes Connect just send us,

Effective October 1, 2015, new tax laws go into effect in Japan with respect to foreign business that provide electronic commerce to Japanese residents. You may now be required to administer Japanese Consumption Tax (current rate of 8%) imposed under these new tax laws. Further details on the tax law changes can be found at Ministry of Finance Japan website.

Anyone reach out a tax advisor regarding the obligation (or not) to administer Japanese Consumption Tax? The way I understand it, is that you are only required to adminster it if your sale in Japan are over 10M JPY.

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Answer 1

agilemind OP

Oct ’15

"A business whose taxable turnover in Japan (2013FY) is equal or less than 10 million JPY is exempt from tax filing on Japanese Consumption Tax (2015FY)"

Could someone please explain what this line means? How are the years 2013 and 2015 related? And, what does FY stand for?

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Answer 2

OOPer OP

Oct ’15

FY is an abbreviation of `financial year`. It's the same as calendar year for individuals, for companies, it starts at the period declared to the tax office.

Whether you need to file on consumption tax in Japan or not, depends on your business' whole amount of sales. (Not only in the App Store.) The statement says that your obligation for tax filing of this (financial) year, depends on the sales in 2013 (FY).

(Some terminologies are not legally accurate. You need to contact to the government tax office or a legal agent of taxing, when legal accuracy makes sense.)

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Answer 3

agilemind OP

Oct ’15

Even though most people's sales are no where near that, Has anyone pulled their apps from Japanese store because of this new tax requirement?

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Answer 4

LumuS OP

Oct ’15

I am pulled all my paid apps from Japanese store. Now I try to find some information to understand what I need to do with this new tax requirement.

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