Japan Consumption Tax (October 1, 2015 onwards)

There has been a change to how tax is applied to eBooks in Japan starting October 1^st, 2015.

What’s changed?

Originally, Japan ebooks were tax exclusive, which means they are sold for the JPY price you set and tax is added to this at the point of purchase. Since October 1st, consumption tax is now inclusive for all eBooks sold in Japan. This means that instead of adding tax at the point of purchase, it is included in the books’ pricing. This is the same way that tax is calculated in Europe.

What does this mean for you?

The consumption tax rate is 8% and should be considered when pricing books in JPY. Our minimum threshold for earning 70% royalties on JPY is ¥299. This threshold will remain the same but from October 1^st, 2015 this threshold will be inclusive of tax – exclusive of tax this is amount is ¥275.08. This means that you should bear in mind the inclusive tax rate when pricing your JPY titles.

If you have any questions about these changes, please email us at [e-mail].