The Japanese authorities have decided to penalize Apple for illegal business practices. Japan is asking the American brand to pay a bill of 13,000 million yen (about 92 million euros) for back taxes.
According to the Nikkei media, Apple would have allowed wholesale purchases of iPhones by foreign buyers in certain Japanese stores, without charging them the 10% consumption tax.
A misapplied exemption
Japan allows visitors staying in the country for less than six months to purchase products without paying excise tax. However, this exemption is not accepted for purchases for resale.
However, several wholesale purchases have been made at certain stores, with some people purchasing several hundred smartphones in a single box, without being taxed by the store in question.
Electronics purchases are not regulated in Japan, which explains why such purchases were possible. There is no ceiling for these types of products, unlike cosmetic or pharmaceutical products that 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 purchases from June. In 2022 alone, the brand’s sales in Japan would have reached 26 billion dollars, according to the latest report from the company.
Source: BFM TV
