September 30, 2015 Last Updated 1:31 pm

Apple warns iBooks sellers about new Japanese consumption tax

For the second time in 24 hours, Apple has sent out a notice to publishers/developers concerning Japan’s new consumption tax – though this communications was likely limited to holder of paid iBooks Store accounts.*

If you’re offering digital books for sale in Japan, keep in mind that new tax laws for foreign businesses that provide electronic commerce to Japanese residents go into effect on October 1, 2015. Under the new laws, you may now have to collect and pay Japanese consumption tax (at current rate of 8%) on books that you sell to Japanese customers on iBooks.

To learn more about the new tax laws, check the website of the Ministry of Finance Japan. For more information on your tax responsibilities, see your eBooks Agency/Commissionaire Distribution agreement in Contracts, Tax, and Banking on iTunes Connect. If you have any questions about taxation, talk to your tax or legal advisor.


The iBooks team

The good news for self-publishing authors and small publishers is that businesses who sell less than 10 million JPY are exempt from tax filing on Japanese Consumption Tax. As of today, that is the equivalent of about $83,400. (TNM has sold only a handful of copies of Talking Digital or the Guide to Digital Publishing Platforms in Japan through iBooks.)

* Anyone can publish to the iBooks Store, but those offering their eBooks for free do not need to create a commercial account, so this only applies to those who had to go through the process of setting up a paid iBooks account.

Comments are closed.