Starting October 1, 2015 an 8% consumption tax will be applied to all ebooks sold to customers living in Japan. No action is required of you, but KDP is notifying authors who have one or more titles available through KDP that may be affected by this change.
One-time Adjustment for Existing KDP Titles
Beginning October 1, list prices set for Amazon.co.jp will be tax-inclusive, meaning that the 8% consumption tax will be included in the list price you give. For example, if you set your Amazon.co.jp list price at ¥1250, your new tax-inclusive list price would be ¥1250. Tax will be deducted from this price, and your royalties would be calculated on a resulting price of ¥1157. Keep in mind that you can change your price at any time subject to KDP’s Terms and Conditions.
Minimum and Maximum List Prices
The minimum and maximum list prices for the 35% and 70% royalty plans will now also be inclusive of tax. Previously the minimum and maximum list price for the 35% royalty plan were ¥99 and ¥20,000 respectively. The new minimum and maximum list prices for the 35% royalty plan will be ¥99 and ¥20,000 inclusive of tax (or ¥91.67 and ¥18,518.52 exclusive of tax). Similarly, the minimum and maximum list prices for the 70% royalty were ¥250 and ¥1250. The new minimum and maximum list prices for the 70% royalty plan will be ¥250 and ¥1250 inclusive of tax (or ¥231.48 and ¥1,157.41 exclusive of tax).
Setting List Prices for Amazon.co.jp
Starting October 1, to make it easier to set customer friendly list prices without having to calculate tax, authors will set list prices for the JP marketplace that include consumption tax. To accommodate this, the KDP pricing grid will be updated to accept tax-inclusive list prices. In the pricing page, authors will also see their suggested price without tax to help them understand how royalties will be calculated. For those authors who set their JP marketplace price automatically from their US list price, we will convert the US list price to local currency and that will be the list price that includes tax.