App Store and Japanese Consumption Tax
As a result of last year’s change in Japan’s tax regulations, Apple (through iTunes K.K. in Japan) is now designated as a Specified Platform Operator by the Japan tax authority. All paid apps and In-App Purchases, (including game items, such as coins) sold by non-Japan-based developers on the App Store in Japan will be subject to the platform tax regime. Apple will collect and remit a 10% Japanese consumption tax (JCT) to the National Tax Agency JAPAN on such transactions at the time of purchase. Your proceeds will be adjusted accordingly.
As far as I’m aware, this does not apply to software sold outside the App Store, though that remains subject to the 20% Japanese tax on software royalties unless you file the yearly paperwork (sending the Japanese government your IRS Form 6166) to show that you are paying taxes in the US.
Previously:
- Selling Outside of the Mac App Store
- Japan Passes Law to Allow App Marketplaces
- Japanese Consumption Tax and the App Store
