Apple Japan must pay the equivalent of 92 million euros in back taxes

Apple’s Japanese branch must pay 13 billion yen (92.03 million euros) in back taxes for wholesale sales of iPhones and other Apple devices to tourists who were incorrectly exempted from consumption tax, Nikkei said.

Bulk purchases of iPhones by overseas buyers have been uncovered at some Apple stores, with at least one transaction involving an individual purchasing hundreds of phones at one time and the store failing to tax at least one possible reseller.

Japan allows tourists staying for less than six months to purchase goods without paying the 10% consumption tax, but the exemption does not apply to purchases for sale. According to Nikkei, Apple Japan has filed an amended tax return.

This decision of back taxes targeting Apple comes shortly after Tim Cook visited the country. The leader documented his stay there with several messages and photos shared on Twitter. This notably involved a meeting with Sony, confirming in passing that the Japanese company provides photo sensors for the iPhone.

On the other hand, Japanese authorities have recently pressured Apple to support multiple iPhone app stores. Apple also saw record declines in App Store revenue in Japan and other countries. This problem could be compounded by increased competition as Apple intends to allow third-party App Store and sideloading, taking care of Europe, with iOS 17.

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