Tokyo authorities are hitting Apple Japan with a $98 million additional tax bill for incorrectly exempting tourists and resellers from a consumption tax.
Nikkei reports that authorities had discovered bulk purchases of iPhones and other devices in certain Apple stores in the country.
Bulk purchases of iPhones by foreign shoppers were discovered at some Apple stores, a source said. At least one transaction involved an individual buying hundreds of handsets at once, suggesting that the store missed taxing a possible reseller.
Japan’s tax-free shopping allows visitors staying for less than six months to buy items such as souvenirs or everyday goods without paying the 10% consumption tax, but this exemption does not apply to purchases for resale purposes.
Japan offers tax-free shopping for visitors staying less than six months to buy certain goods without paying the country’s 10% consumption tax. However, the exemption doesn’t apply to purchases for resell purposes.
Apple Japan filed an amended tax return and the company also voluntarily stopped offering tax-free shopping in June.
“We do not offer tax-free shopping at our stores,” the company told Nikkei. “We apologize for the inconvenience.”
Apple is just one of the companies being served with larger tax bills. Since last year, Tokyo’s tax bureau has charged three big department store chains a total of more than 100 million yen in unpaid consumption taxes.
Apple’s sales in Japan totaled $26 billion in fiscal 2022, according to the company’s latest annual report.