Report: Japan to Tax Digital Goods from Foreign Sources in 2015

If you live in Japan you already know that the government taxes games (and other physical goods) with a consumption tax that are imported from outside the country, but that tax will soon be applied to digital purchases as well, according to this Kotaku report. The Kotaku report, which cites a story in Japanese newspaper Nikkei, notes that downloadable content such as digital music, e-books, apps, games, and even DLC downloaded from foreign servers will be levied with a consumption tax.

The tax on digital goods is basically the result of Japanese retailers complaining about foreign competitors like Amazon having an unfair advantage because individuals in Japan who buy digital content from the company get their content tax-free.

Next year that will all change. The focus on taxes and retailers who live on the Internet sounds very familiar to Americans who have watched traditional retailers use their lobbying muscle on the state and federal level to pass legislation that collects taxes from customers who buy goods of all stripes online..

Source: Kotaku

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