Order for Enforcement of the Consumption Tax Act

A business operator that operates a general-type tax-free shop may have the work pertaining to the tax-free sale procedures of the general-type tax-free shop carried out, by entrusting it to a business operator that has received the approval under the following paragraph (excluding a business operator exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1) of the Act; referred to as an "approved tax-free procedure business operator" in this Article and in paragraph (4), item (iii) of the following Article), at the tax-free procedure counter pertaining to the approval (meaning the facilities and equipment by which an approved tax-free procedure business operator carries out the tax-free sale procedures of other business operators; the same applies in this Article). In this case, the business operator that operates the general-type tax-free shop must take the following measures:

measures to enable confirmation that the tax-exempt goods for which tax-free sale procedures are carried out at the tax-free procedure counter are identical to the tax-exempt goods transferred at the general-type tax-free shop;

measures to enable confirmation that tax-free sale procedures have not yet been carried out for the tax-exempt goods for which tax-free sale procedures are carried out at the tax-free procedure counter;

provision of other information necessary for the tax-free sale procedures carried out at the tax-free procedure counter.

A business operator that intends to carry out, upon entrustment under the preceding paragraph, the work pertaining to the tax-free sale procedures of a general-type tax-free shop must obtain the approval of the district director having jurisdiction over its place for tax payment for each tax-free procedure counter it establishes.

A business operator that intends to obtain the approval under the preceding paragraph must submit to the district director having jurisdiction over its place for tax payment a written application stating the location of the tax-free procedure counter it intends to establish and other matters specified by Ministry of Finance Order, attaching to it documents describing an outline of the work pertaining to the tax-free sale procedures to be carried out at that tax-free procedure counter and other documents specified by Ministry of Finance Order.

Where a written application under the preceding paragraph has been submitted, the district director is to examine it without delay, approve the application where all of the following requirements are satisfied, and dismiss the application where any of those requirements is not satisfied:

the business operator currently has no arrears of national taxes (limited to those for which collection of the amount of taxes in arrears is extremely difficult);

the business operator has established the necessary system for properly carrying out the tax-free sale procedures at the tax-free procedure counter;

the business operator is not a person whose permission for a tax-free shop has been rescinded pursuant to Article 8, paragraph (8) of the Act, or whose approval as an approved tax-free procedure business operator or as an approved transmission business operator provided for in Article 18-4, paragraph (1) has been rescinded pursuant to the following paragraph or paragraph (5) of the following Article, and for whom three years have not elapsed from the day of the rescission, and there are no other circumstances found to make it particularly inappropriate as an approved tax-free procedure business operator that establishes a tax-free procedure counter.

The district director may rescind the approval under paragraph (2) pertaining to an approved tax-free procedure business operator where the approved tax-free procedure business operator has violated the provisions of laws and regulations concerning consumption tax, or where the status of the tax-free sale procedures at the tax-free procedure counter pertaining to the approval under paragraph (2) is found to be particularly inappropriate.

When the district director makes a disposition under the preceding two paragraphs, the district director is to notify the business operator pertaining to the disposition to that effect in writing.

An approved tax-free procedure business operator must, when it intends to abolish a tax-free procedure counter pertaining to the approval under paragraph (2), submit to the district director having jurisdiction over its place for tax payment a written notification stating the day on which it intends to abolish it and other matters specified by Ministry of Finance Order. In this case, when the written notification has been submitted, the approval under that paragraph ceases to be effective as of that day.

Where the amounts of consideration provided for in Article 28, paragraph (1) of the Act (referred to as the "amount to be combined" in this paragraph) for tax-exempt goods transferred on the same day to the same person eligible for tax-free purchase at multiple general-type tax-free shops are totaled and tax-free sale procedures are carried out for them at one tax-free procedure counter, and the total amount is 5,000 yen or more, the amount specified by Cabinet Order as provided for in Article 8, paragraph (1) of the Act at each of those general-type tax-free shops is, notwithstanding Article 18, paragraph (4), the amount to be combined pertaining to each of those general-type tax-free shops.

An approved tax-free procedure business operator that has carried out work pertaining to tax-free sale procedures upon entrustment under paragraph (1) must provide, to the business operator that operates the general-type tax-free shop pertaining to those tax-free sale procedures, the information necessary for that business operator to carry out the provision of purchase record information pursuant to the first sentence of Article 8, paragraph (2) of the Act.

An approved tax-free procedure business operator must, as specified by Ministry of Finance Order, create records concerning the work pertaining to the tax-free sale procedures separately for each general-type tax-free shop for which it carries out such work upon entrustment under paragraph (1), and retain the records it has created.

A business operator that operates a tax-free shop may have the work pertaining to the provision, etc. of purchase record information of the tax-free shop carried out by entrusting it to a business operator that has received the approval under the following paragraph (excluding a business operator exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1) of the Act; referred to as an "approved transmission business operator" in this Article). In this case, the business operator that operates the tax-free shop must provide the information necessary for carrying out the provision, etc. of purchase record information to the approved transmission business operator.

A business operator that intends to carry out, upon entrustment under the preceding paragraph, the work pertaining to the provision, etc. of purchase record information of a tax-free shop must obtain the approval of the district director having jurisdiction over its place for tax payment.

A business operator that intends to obtain the approval under the preceding paragraph must submit to the district director having jurisdiction over its place for tax payment a written application stating an outline of the information system used for the provision, etc. of purchase record information and other matters specified by Ministry of Finance Order, attaching to it documents describing an outline of the work pertaining to the provision, etc. of purchase record information and other documents specified by Ministry of Finance Order.

Where a written application under the preceding paragraph has been submitted, the district director is to examine it without delay, approve the application where all of the following requirements are satisfied, and dismiss the application where any of those requirements is not satisfied:

the business operator currently has no arrears of national taxes (limited to those for which collection of the amount of taxes in arrears is extremely difficult);

the business operator has established the necessary system for properly carrying out the provision, etc. of purchase record information;

the business operator is not a person whose permission for a tax-free shop has been rescinded pursuant to Article 8, paragraph (8) of the Act, or whose approval as an approved tax-free procedure business operator or an approved transmission business operator has been rescinded pursuant to paragraph (5) of the preceding Article or the following paragraph, and for whom three years have not elapsed from the day of the rescission, and there are no other circumstances found to make it particularly inappropriate as an approved transmission business operator that carries out, upon entrustment under paragraph (1), the work pertaining to the provision, etc. of purchase record information.

The district director may rescind the approval under paragraph (2) pertaining to an approved transmission business operator where the approved transmission business operator has violated the provisions of laws and regulations concerning consumption tax, or where the status of the provision, etc. of purchase record information for which it carries out the work upon entrustment under paragraph (1) is found to be particularly inappropriate.

When the district director makes a disposition under the preceding two paragraphs, the district director is to notify the business operator pertaining to the disposition to that effect in writing.

An approved transmission business operator must, when it intends to discontinue the business pertaining to the approval under paragraph (2), submit to the district director having jurisdiction over its place for tax payment a written notification stating the day on which it intends to discontinue it and other matters specified by Ministry of Finance Order. In this case, when the written notification has been submitted, the approval under that paragraph ceases to be effective as of that day.

The provisions of Article 18, paragraph (8) apply mutatis mutandis to the provision of purchase record information for which an approved transmission business operator carries out the work upon entrustment under paragraph (1).

Where an approved transmission business operator has, in respect of a tax-free shop for which it carries out the work upon entrustment under paragraph (1), made the provision of purchase record information pursuant to the first sentence of Article 8, paragraph (2) of the Act or received customs confirmation information pursuant to the second sentence of paragraph (3) of that Article, it must provide that purchase record information or customs confirmation information to the business operator that operates the tax-free shop.

An approved transmission business operator must, as specified by Ministry of Finance Order, create records concerning the work pertaining to the provision, etc. of purchase record information that it carries out upon entrustment under paragraph (1), and retain the records it has created.

A business operator that intends to obtain the approval under Article 8, paragraph (10) of the Act must submit to the district director having jurisdiction over its place for tax payment a written application stating an outline of the temporary sales outlets it plans to establish (meaning the temporary sales outlets provided for in Article 8, paragraph (9) of the Act that are deemed to be tax-free shops provided for in paragraph (7) of that Article pursuant to paragraph (9) of that Article; the same applies in this Article) and other matters specified by Ministry of Finance Order.

Where a written application under the preceding paragraph has been submitted, the district director is to examine it without delay and, according to the category of business operator listed in the following items, grant the approval under Article 8, paragraph (10) of the Act where the application falls under the case specified in the relevant item, and dismiss the application where it does not fall under such case:

a business operator that intends to establish a temporary sales outlet that is deemed to be a general-type tax-free shop: the case where all of the following requirements are satisfied:

that the business operator has established the necessary system for accurately carrying out the work pertaining to the tax-free sale procedures and the provision, etc. of purchase record information at the temporary sales outlet;

that the business operator is not a person whose permission for a tax-free shop has been rescinded pursuant to Article 8, paragraph (8) of the Act (excluding the part pertaining to item (iii)), or whose approval under Article 8, paragraph (10) of the Act has been rescinded pursuant to the following paragraph (excluding the part pertaining to item (iii)), and for whom three years have not elapsed from the day of the rescission, and that there are no other circumstances found to make it particularly inappropriate as a business operator that establishes a temporary sales outlet;

that the business operator has obtained the permission under Article 8, paragraph (7) of the Act for a general-type tax-free shop.

a business operator that intends to establish a temporary sales outlet that is deemed to be a vending-machine-type tax-free shop: the case where the requirements listed in (a) and (b) of the preceding item are satisfied.

The district director may rescind the approval where a business operator that has obtained the approval under Article 8, paragraph (10) of the Act falls under any of the cases listed in the following items:

where it has violated the provisions of laws and regulations concerning consumption tax;

where the status of the tax-free sale procedures at the temporary sales outlet is found to be particularly inappropriate;

where, owing to a deficiency in or false entry in the purchase record information provided pursuant to the first sentence of Article 8, paragraph (2) of the Act, or other circumstances, the confirmation of the director-general of the customs house under paragraph (1) of that Article is found to be hindered.

When the district director makes a disposition under the preceding two paragraphs, the district director is to notify the business operator pertaining to the disposition to that effect in writing.

A business operator that has submitted the written notification provided for in Article 8, paragraph (9) of the Act must, when there is a change in the matters stated in the written notification, submit without delay to the district director having jurisdiction over its place for tax payment a written notification stating that fact and other matters specified by Ministry of Finance Order. In this case, where there has been a change making the period provided for in that paragraph a period exceeding seven months, the provisions of that paragraph apply only to the period before the change.

A business operator that has obtained the approval under Article 8, paragraph (10) of the Act must, when it intends to cease establishing the temporary sales outlet pertaining to the approval, submit to the district director having jurisdiction over its place for tax payment a written notification stating the day on which it intends to cease and other matters specified by Ministry of Finance Order. In this case, when the written notification has been submitted, the approval under that paragraph ceases to be effective as of that day.