The Japanese subsidiary of the brand would not have correctly applied a consumption tax. Apple’s sales in Japan reached $26 billion in 2022.
Japanese authorities have decided to sanction Apple for illegal business practices. Japan is asking the American brand to repay a bill of 13 billion yen (about 92 million euros) in tax arrears.
As the media reports NikkeiApple reportedly let overseas buyers make wholesale purchases of iPhones in some Japanese stores, without charging them the 10% consumption tax.
A poorly applied exemption
Japan allows visitors staying in the country for less than six months to buy products without paying the consumption tax. However, this exemption is not accepted for purchases for resale.
However, several wholesale purchases have been made in certain stores, with some individuals buying several hundred smartphones in a single checkout, without the store in question taxing them.
Purchases of electronic goods are not regulated in Japan, which explains why such purchases were possible. No ceiling exists for this type of product, unlike cosmetics or pharmaceutical products which are limited to 500,000 yen (about 3,500 euros) per purchase.
Apple has since filed an amended tax return and said it stopped offering tax-free shopping since June. In 2022 alone, the brand’s sales in Japan would have reached $26 billion, according to the company’s latest report.
