Order for Enforcement of the Consumption Tax Act

In addition to what is provided for in the following paragraph and paragraph (3), the businesses specified by Cabinet Order as prescribed in Article 37, paragraph (1), item (i) of the Act are the businesses set out in the following items, and the rate specified by Cabinet Order as prescribed in item (i) of that paragraph is the rate specified in each of the following items for the category of those businesses:

type 1 business: 90/100;

type 2 business: 80/100;

type 3 business: 70/100;

type 5 business: 50/100;

type 6 business: 40/100.

Where the businesses carried on by a business operator are two or more businesses among type 4 business and the businesses set out in the items of the preceding paragraph, the rate specified by Cabinet Order as prescribed in Article 37, paragraph (1), item (i) of the Act is the ratio of the total of the amounts set out in the following items to the total of the remainders prescribed in those items (referred to as "consumption tax on sales" in the following paragraph):

the amount calculated by multiplying by 90/100 the remainder (referred to as "consumption tax for type 1 business" in item (ii), (a) of the following paragraph) obtained by deducting, from the total amount of consumption tax on taxable transfers, etc. of assets pertaining to type 1 business made in Japan during that taxable period, the total amount of consumption tax relating to the amount of refunds, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act (hereinafter in this paragraph referred to as "consumption tax on refunds, etc. of consideration for sales") that pertain to type 1 business and were made during that taxable period;

the amount calculated by multiplying by 80/100 the remainder (referred to as "consumption tax for type 2 business" in item (ii), (b) of the following paragraph) obtained by deducting, from the total amount of consumption tax on taxable transfers, etc. of assets pertaining to type 2 business made in Japan during that taxable period, the total amount of consumption tax on refunds, etc. of consideration for sales pertaining to type 2 business made during that taxable period;

the amount calculated by multiplying by 70/100 the remainder (referred to as "consumption tax for type 3 business" in item (ii), (c) of the following paragraph) obtained by deducting, from the total amount of consumption tax on taxable transfers, etc. of assets pertaining to type 3 business made in Japan during that taxable period, the total amount of consumption tax on refunds, etc. of consideration for sales pertaining to type 3 business made during that taxable period;

the amount calculated by multiplying by 60/100 the remainder (referred to as "consumption tax for type 4 business" in item (ii), (d) of the following paragraph) obtained by deducting, from the total amount of consumption tax on taxable transfers, etc. of assets pertaining to type 4 business made in Japan during that taxable period, the total amount of consumption tax on refunds, etc. of consideration for sales pertaining to type 4 business made during that taxable period;

the amount calculated by multiplying by 50/100 the remainder (referred to as "consumption tax for type 5 business" in item (ii), (e) of the following paragraph) obtained by deducting, from the total amount of consumption tax on taxable transfers, etc. of assets pertaining to type 5 business made in Japan during that taxable period, the total amount of consumption tax on refunds, etc. of consideration for sales pertaining to type 5 business made during that taxable period;

the amount calculated by multiplying by 40/100 the remainder obtained by deducting, from the total amount of consumption tax on taxable transfers, etc. of assets pertaining to type 6 business made in Japan during that taxable period, the total amount of consumption tax on refunds, etc. of consideration for sales pertaining to type 6 business made during that taxable period.

In the case of the preceding paragraph, where a business operator falls under any of the following cases, the rate specified by Cabinet Order as prescribed in Article 37, paragraph (1), item (i) of the Act may, notwithstanding the preceding paragraph, be the ratio specified in each of the following items for the category of cases set out in that item:

where the ratio of the remainder obtained by deducting, from the total amount of consideration for taxable transfers, etc. of assets (excluding those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) of the Act or any other Act or treaty; the same applies hereinafter in this Article) made in Japan by that business operator during that taxable period relating to a specified single business (meaning one business among the businesses set out in the items of paragraph (1) or type 4 business), the total of the tax-exclusive amount of refunds, etc. of consideration for sales made during that taxable period relating to that specified single business, to the taxable sales of that business operator for that taxable period (meaning the remainder obtained by deducting, from the total amount of consideration for taxable transfers, etc. of assets made in Japan during that taxable period, the total of the tax-exclusive amount of refunds, etc. of consideration for sales made during that taxable period; the same applies in the following item) is 75/100 or more: the ratio specified respectively for the following categories of cases:

where that specified single business is a type 1 business: 90/100;

where that specified single business is a type 2 business: 80/100;

where that specified single business is a type 3 business: 70/100;

where that specified single business is a type 4 business: 60/100;

where that specified single business is a type 5 business: 50/100;

where that specified single business is a type 6 business: 40/100;

where the ratio of the remainder obtained by deducting, from the total amount of consideration for taxable transfers, etc. of assets made in Japan by that business operator during that taxable period relating to specified two businesses (meaning two businesses among the businesses set out in the items of paragraph (1) or type 4 business), the total of the tax-exclusive amount of refunds, etc. of consideration for sales made during that taxable period relating to those specified two businesses, to the taxable sales of that business operator for that taxable period is 75/100 or more: the ratio specified respectively for the following categories of cases:

where the specified two businesses are a type 1 business and a business other than a type 1 business: the ratio of the total of the following amounts to the consumption tax on sales:

the amount set out in item (i) of the preceding paragraph;

the amount calculated by multiplying the amount obtained by deducting the consumption tax for type 1 business from the consumption tax on sales by the ratio specified respectively for the following categories of cases:

where the business other than that type 1 business is a type 2 business: 80/100;

where the business other than that type 1 business is a type 3 business: 70/100;

where the business other than that type 1 business is a type 4 business: 60/100;

where the business other than that type 1 business is a type 5 business: 50/100;

where the business other than that type 1 business is a type 6 business: 40/100;

where the specified two businesses are a type 2 business and a business other than a type 2 business (excluding a type 1 business): the ratio of the total of the following amounts to the consumption tax on sales:

the amount set out in item (ii) of the preceding paragraph;

the amount calculated by multiplying the amount obtained by deducting the consumption tax for type 2 business from the consumption tax on sales by the ratio specified respectively for the following categories of cases:

where the business other than that type 2 business is a type 3 business: 70/100;

where the business other than that type 2 business is a type 4 business: 60/100;

where the business other than that type 2 business is a type 5 business: 50/100;

where the business other than that type 2 business is a type 6 business: 40/100;

where the specified two businesses are a type 3 business and a business other than a type 3 business (excluding a type 1 business and type 2 business): the ratio of the total of the following amounts to the consumption tax on sales:

the amount set out in item (iii) of the preceding paragraph;

the amount calculated by multiplying the amount obtained by deducting the consumption tax for type 3 business from the consumption tax on sales by the ratio specified respectively for the following categories of cases:

where the business other than that type 3 business is a type 4 business: 60/100;

where the business other than that type 3 business is a type 5 business: 50/100;

where the business other than that type 3 business is a type 6 business: 40/100;

where the specified two businesses are a type 4 business and a business other than a type 4 business (excluding a type 1 business, type 2 business and type 3 business): the ratio of the total of the following amounts to the consumption tax on sales:

the amount set out in item (iv) of the preceding paragraph;

the amount calculated by multiplying the amount obtained by deducting the consumption tax for type 4 business from the consumption tax on sales by the ratio specified respectively for the following categories of cases:

where the business other than that type 4 business is a type 5 business: 50/100;

where the business other than that type 4 business is a type 6 business: 40/100;

where the specified two businesses are a type 5 business and a type 6 business: the ratio of the total of the following amounts to the consumption tax on sales:

the amount set out in item (v) of the preceding paragraph;

the amount calculated by multiplying the amount obtained by deducting the consumption tax for type 5 business from the consumption tax on sales by 40/100.

The application of the preceding two paragraphs, where among the taxable transfers, etc. of assets conducted in Japan during the taxable period by a business operator that carries on two or more businesses among type 4 business and the businesses set out in the items of paragraph (1) there are those for which no classification has been made by type of those businesses, is as set out in the following items:

where, among the taxable transfers, etc. of assets conducted in Japan during the taxable period by a business operator that carries on a type 1 business and a type 2 business, there are those for which no classification has been made as to whether they relate to a type 1 business or a type 2 business, the taxable transfers, etc. of assets for which no classification has been made are to be treated as relating to a type 2 business;

where, among the taxable transfers, etc. of assets conducted in Japan during the taxable period by a business operator that carries on a type 1 business or type 2 business and a type 3 business, there are those for which no classification has been made as to whether they relate to a type 1 business or type 2 business or to a type 3 business, the taxable transfers, etc. of assets for which no classification has been made are to be treated as relating to a type 3 business;

where, among the taxable transfers, etc. of assets conducted in Japan during the taxable period by a business operator that carries on a type 1 business, type 2 business or type 3 business and a type 4 business, there are those for which no classification has been made as to whether they relate to a type 1 business, type 2 business or type 3 business or to a type 4 business, the taxable transfers, etc. of assets for which no classification has been made are to be treated as relating to a type 4 business;

where, among the taxable transfers, etc. of assets conducted in Japan during the taxable period by a business operator that carries on a type 1 business, type 2 business, type 3 business or type 4 business and a type 5 business, there are those for which no classification has been made as to whether they relate to a type 1 business, type 2 business, type 3 business or type 4 business or to a type 5 business, the taxable transfers, etc. of assets for which no classification has been made are to be treated as relating to a type 5 business;

where, among the taxable transfers, etc. of assets conducted in Japan during the taxable period by a business operator that carries on a type 6 business and a business other than a type 6 business, there are those for which no classification has been made as to whether they relate to a type 6 business or to a business other than a type 6 business, the taxable transfers, etc. of assets for which no classification has been made are to be treated as relating to a type 6 business.

In the preceding paragraphs, the meanings of the terms set out in the following items are as prescribed in those items.

type 1 business: means wholesale business;

type 2 business: means the following businesses:

retail business;

agriculture (limited to the part that conducts transfers of food and drink items set out in Appended Table 1, item (i) of the Act);

forestry (limited to the part that conducts transfers of food and drink items set out in Appended Table 1, item (i) of the Act);

fishery (limited to the part that conducts transfers of food and drink items set out in Appended Table 1, item (i) of the Act);

type 3 business: means the following businesses (excluding those that fall under the businesses set out in the preceding two items and businesses that conduct the provision of services for consideration in the form of processing fees or similar charges):

agriculture;

forestry;

fishery;

mining;

construction business;

manufacturing (including a business of retail sale of inventory that has been manufactured);

electricity business, gas business, heat supply business and water supply business;

type 5 business: means the following businesses (excluding those that fall under the businesses set out in the preceding three items):

transportation and communications business;

finance business and insurance business;

service industry (excluding those that fall under the restaurant business);

type 6 business: means real estate business (excluding those that fall under the businesses set out in the preceding items);

type 4 business: means businesses other than those set out in the preceding items;

tax-exclusive amount of refunds, etc. of consideration for sales: means the amount obtained by deducting, from the amount of the refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act, the amount calculated by multiplying the consumption tax on refunds, etc. of consideration for sales prescribed in that paragraph by 100/78.

The wholesale business in item (i) of the preceding paragraph means a business of selling goods purchased from another person to another business operator without changing their nature and form, and the retail business in item (ii), (a) of that paragraph means a business of selling goods purchased from another person without changing their nature and form, other than a business set out in item (i) of that paragraph.