Order for Enforcement of the Consumption Tax Act

The fixed period specified by Cabinet Order prescribed in Article 2, paragraph (1), item (xiii) of the Act is to be the fiscal year of a public corporation, etc. (meaning the national government, a local government, or any other corporation not subject to the application of Articles 13 and 14 (Business Year) of the Corporation Tax Act (including an association or foundation without legal personality; the same applies hereinafter); the same applies hereinafter in this Article) or any other period equivalent to it (hereinafter in this Article referred to as the "fiscal year, etc.") that is prescribed by laws and regulations, or that is prescribed in the articles of incorporation, act of endowment, rules or regulations of the public corporation, etc. (hereinafter in this Article referred to as the "articles of incorporation, etc."), and, where laws and regulations or the articles of incorporation, etc. do not prescribe a fiscal year, etc., is to be the fiscal year, etc. notified to the district director having jurisdiction over the place for tax payment under the provisions of the following paragraph, the fiscal year, etc. designated by the district director having jurisdiction over the place for tax payment under the provisions of paragraph (3), or the period prescribed in paragraph (4); provided, however, that where any of those periods exceeds one year, it is to be each period into which that period is divided at intervals of one year from its start date (or, where a period of less than one year arises at the end, that period of less than one year).

A public corporation, etc. for which laws and regulations or the articles of incorporation, etc. do not prescribe a fiscal year, etc. must, within two months after the day on which it commenced business pertaining to taxable transfers, etc. of assets in Japan (excluding those that fall under specified transfers, etc. of assets; the same applies in paragraph (5)), prescribe a fiscal year, etc. and notify the district director having jurisdiction over the place for tax payment of it.

Where a public corporation, etc. (excluding an association or foundation without legal personality) that is to make the notification under the provisions of the preceding paragraph does not make that notification, the district director having jurisdiction over the place for tax payment is to designate its fiscal year, etc. and notify that public corporation, etc. to that effect in writing.

Where an association or foundation without legal personality that is to make the notification under the provisions of paragraph (2) does not make that notification, the fiscal year, etc. of that association or foundation without legal personality is to be the period from January 1 to December 31 of that year.

Where a public corporation, etc. commences business pertaining to taxable transfers, etc. of assets in Japan in the middle of a fiscal year, etc. determined under the provisions of the preceding paragraphs, notwithstanding those provisions, the first day of the fiscal year, etc. that includes the day on which it commenced that business is to be the day on which it commenced that business, and where a public corporation, etc. discontinues that business in the middle of a fiscal year, etc. determined under those provisions (including where it is extinguished by merger) or where the residual assets of a public corporation, etc. in liquidation are finalized, notwithstanding those provisions, the last day of the fiscal year, etc. that includes the day on which it came to fall under any of those cases is to be the day on which it came to fall under that case.

Where a public corporation, etc. changes the fiscal year, etc. prescribed in its articles of incorporation, etc., or newly prescribes a fiscal year, etc. in its articles of incorporation, etc., it must, without delay, notify the district director having jurisdiction over the place for tax payment of the fiscal year, etc. before the change and the fiscal year, etc. after the change, or of the fiscal year, etc. so prescribed.

The assets specified by Cabinet Order prescribed in Article 2, paragraph (1), item (xv) of the Act are the assets for which inventory taking is to be conducted and that are set out in the following items:

merchandise or products (including by-products and scrap);

semi-finished products;

work in process (including partially completed construction);

principal raw materials;

auxiliary raw materials;

supplies in storage;

anything equivalent to the assets set out in the preceding items.

The assets specified by Cabinet Order prescribed in Article 2, paragraph (1), item (xvi) of the Act are, among the assets other than inventory that are set out in the following items, those for which the amount equivalent to 100/110 of the amount of consideration paid for taxable purchases prescribed in Article 30, paragraph (8), item (i), (d) of the Act pertaining to the asset, the amount of consideration paid for specified taxable purchases prescribed in paragraph (1) of that Article pertaining to the asset, or the amount that is the tax base of the asset taken from a bonded area is 1,000,000 yen or more per unit of one transaction (for those ordinarily treated as a unit of transaction by a set or a complete set, per set or complete set):

buildings and their ancillary facilities (meaning heating and cooling equipment, lighting equipment, ventilation equipment, elevators, and other facilities attached to buildings);

structures (meaning docks, bridges, quays, piers, tracks, reservoirs, mine shafts, chimneys, and other civil engineering facilities or works fixed to land);

machinery and equipment;

a vessel;

aircraft;

vehicles and transport equipment;

tools, appliances and fixtures (including living things used for ornamental, entertainment, or similar purposes);

the following intangible fixed assets:

mining rights (including mining lease rights, quarrying rights, and other rights to excavate or collect earth and stone (excluding the intangible fixed assets set out in (b)));

storage rights (including test drilling rights prescribed in Article 2, paragraph (8) (Definitions) of the Act on Carbon Dioxide Storage Business (Act No. 38 of 2024));

fishing rights (including fishing access rights);

dam usage rights;

water rights;

patent rights;

utility model rights;

design rights;

trademark rights;

breeder's rights;

public facilities, etc. operation rights;

tree harvesting rights;

fishing port water surface facilities operation rights;

goodwill;

exclusive siding use rights (meaning the right, acquired by bearing, for a person who conducts the railway business prescribed in Article 2, paragraph (1) (Definitions) of the Railway Business Act (Act No. 92 of 1986) or the transport business conducted by laying the rail tracks prescribed in Article 1, paragraph (1) (Scope of Application of the Act) of the Act on Rail Tracks (Act No. 76 of 1921) (hereinafter in this item referred to as a "railway business operator, etc."), the cost required for laying a railway or rail track, to exclusively use that railway or rail track);

railway and rail track connecting passage facilities use rights (meaning the right of a railway business operator, etc., acquired by bearing, for another railway business operator, etc., the incorporated administrative agency Japan Railway Construction, Transport and Technology Agency, the incorporated administrative agency Japan Expressway Holding and Debt Repayment Agency, or the national government or a local government, the cost required to provide bridges, underpasses, and other facilities necessary for connection with the railway or rail track of that other railway business operator, etc., the incorporated administrative agency Japan Railway Construction, Transport and Technology Agency, or the incorporated administrative agency Japan Expressway Holding and Debt Repayment Agency, or facilities necessary for laying a railway or rail track, to use those facilities);

electricity and gas supply facilities use rights (meaning the right, acquired by bearing, for a person who conducts the general transmission and distribution business prescribed in Article 2, paragraph (1), item (viii) (Definitions) of the Electricity Business Act (Act No. 170 of 1964), the transmission business prescribed in item (x) of that paragraph, the distribution business prescribed in item (xi)-2 of that paragraph, or the power generation business prescribed in item (xiv) of that paragraph, or the general gas pipeline business prescribed in Article 2, paragraph (5) (Definitions) of the Gas Business Act (Act No. 51 of 1954), the cost required to provide electricity or gas supply facilities (excluding those used for the specified gas pipeline business prescribed in paragraph (7) of that Article), to receive the supply of electricity or gas using those facilities);

water supply facilities use rights (meaning the right, acquired by bearing, for a water supply operator prescribed in Article 3, paragraph (5) (Definitions of Terms) of the Water Supply Act (Act No. 177 of 1957), the cost required to provide water supply facilities, to receive the supply of water using those facilities);

industrial water supply facilities use rights (meaning the right, acquired by bearing, for an industrial water supply operator prescribed in Article 2, paragraph (5) (Definitions) of the Industrial Water Supply Business Act (Act No. 84 of 1958), the cost required to provide industrial water supply facilities, to receive the supply of industrial water using those facilities);

telecommunications facilities use rights (meaning the right, acquired by bearing, for a telecommunications carrier prescribed in Article 2, item (v) (Definitions) of the Telecommunications Business Act (Act No. 86 of 1984) that installs the telecommunications line facilities prescribed in Article 9, item (i) (Registration of Telecommunications Business) of that Act, the cost required to install the telecommunications facilities prescribed in Article 2, item (ii) of that Act that are used for the telecommunications business prescribed in Article 2, item (iv) of that Act, to receive the provision of telecommunications services prescribed in Article 2, item (iii) of that Act using those facilities);

golf course membership shares, etc. prescribed in Article 9, paragraph (2);

the following living things (excluding those that fall under what is set out in item (vii)):

cattle, horses, pigs, sheep, and goats;

citrus trees, apple trees, grape vines, pear trees, peach trees, cherry trees, loquat trees, chestnut trees, Japanese apricot trees, persimmon trees, apricot trees, plum trees, fig trees, kiwifruit trees, blueberry trees, and pineapple plants;

tea plants, olive trees, camellia trees, mulberry trees, wicker willows, paperbush, paper mulberry, moso bamboo, asparagus, ramie, New Zealand flax, and hops;

anything equivalent to the assets set out in the preceding items.