Apple will have to reimburse nearly 100 million euros in VAT to the Japanese tax authorities.
And it’s not a scam. It is rather an error of appreciation on the receipt.
In Japan, VAT and tourism do not mix
Anyone who has ever had the chance to set foot in Japan will tell you that when you go shopping, it is not uncommon to come across a poster ” tax free shop “. The promise of a nice economy.
Indeed, for many years, it has been possible for all holders of a visa for less than 6 months in Japan (in other words, tourists) not to pay VAT on many products. To benefit from it, all you have to do is shop in stores that say they practice duty free. The VAT exemption (10% in Japan) is then applied either directly at the checkout or at a counter accessible just after payment.
And it is possible to heat the card for fairly full shopping carts, since the limit for items such as cosmetics or pharmacy is for example 500,000 yen (about 3,540 euros). Even better, there is simply no limit for electronic products. And that’s the rub !
Smart guys bought Apple products for resale
According to sources accessed by the media Nikkei, this tax was diverted from its objective by people who wanted to buy… to resell. What the exemption regime does not provide.
The Japanese authorities were thus able to observe that Apple Japan had allowed people buying wholesale iPhones and other Apple devices to avoid paying the 10% VAT. And some brought big bags, since among the problematic examples cited, we learn that a customer was able to buy hundreds of telephones… without VAT!
In total, the damage is estimated by the administration at 13 billion yen, or approximately 92 million euros. And this is not the only consequence. Apple has not been offering these tax exemptions for several months. For fear of a new recovery?
Sources: Reuters, Nikkei Asia
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