- Japanese Finance Ministry plans to extend VAT collections to app stores starting January 2025
- Google and Apple will be responsible for collecting a 10% Consumption Tax from third-party providers selling to Japanese consumers through their platforms
- Finance Ministry will establish a threshold for app stores, exempting those with taxable supplies below Yen 10 million for two consecutive years from registering for Consumption Tax
- Measures will be taken to address the challenge of app providers ‘splitting’ income between entities to evade registration thresholds
- Effective date of the initiative is January 2025
Source: tpa-global.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
