Order for Enforcement of the Consumption Tax Act

The case specified by Cabinet Order as a case of significant increase prescribed in Article 33, paragraph (1) of the Act is a case where, of the taxable sales ratio (meaning the taxable sales ratio prescribed in Article 33, paragraph (1) of the Act; the same applies hereinafter in this paragraph and the following paragraph) for the taxable period of purchase, etc. (meaning the taxable period of purchase, etc. prescribed in Article 33, paragraph (1) of the Act; the same applies hereinafter in this Article), the proportion accounted for by the ratio obtained by deducting the taxable sales ratio for the taxable period of purchase, etc. from the aggregate taxable sales ratio (meaning the aggregate taxable sales ratio prescribed in Article 33, paragraph (1) of the Act; the same applies hereinafter in this paragraph and the following paragraph) is 50/100 or more, and the ratio obtained by deducting that taxable sales ratio from that aggregate taxable sales ratio is 5/100 or more.

The case specified by Cabinet Order as a case of significant decrease prescribed in Article 33, paragraph (1) of the Act is a case where, of the taxable sales ratio for the taxable period of purchase, etc., the proportion accounted for by the ratio obtained by deducting the aggregate taxable sales ratio from the taxable sales ratio for the taxable period of purchase, etc. is 50/100 or more, and the ratio obtained by deducting that aggregate taxable sales ratio from that taxable sales ratio is 5/100 or more.

The taxable sales ratio aggregated as provided by Cabinet Order, as prescribed in Article 33, paragraph (2) of the Act, is the proportion that the amount set out in item (ii) accounts for in the amount set out in item (i):

the remainder obtained by deducting, from the total amount of consideration for transfers, etc. of assets (meaning the amount of consideration prescribed in Article 28, paragraph (1) of the Act; the same applies hereinafter in this Chapter) made by that business operator in Japan during each taxable period from the taxable period of purchase, etc. through the third-year taxable period (meaning the third-year taxable period prescribed in Article 33, paragraph (1) of the Act; the same applies in paragraph (6)) (hereinafter in this Article referred to as the "aggregate taxable period"), the total amount of refunds, etc. of consideration pertaining to transfers, etc. of assets prescribed in Article 48, paragraph (1), item (i) made in Japan during the aggregate taxable period;

the remainder obtained by deducting, from the total amount of consideration for taxable transfers, etc. of assets made by that business operator in Japan during the aggregate taxable period, the total of the amounts obtained by deducting the amount set out in (b) from the amount set out in (a):

the amount of refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act made in Japan during the aggregate taxable period (including the amount of refund, etc. of consideration for export transactions, etc. prescribed in Article 19 made during that aggregate taxable period);

the amount calculated by multiplying the consumption tax on refunds, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act made in Japan during the aggregate taxable period by 100/78.

The provisions of Article 48, paragraphs (2) through (6) and Article 51, paragraphs (2) through (4) apply mutatis mutandis to the calculation of the aggregate taxable sales ratio prescribed in the preceding paragraph. In this case, the phrase "item (i) of the preceding paragraph" in Article 48, paragraph (2) is deemed to be replaced with "Article 53, paragraph (3), item (i)"; the phrase "paragraph (1), item (i)" in Article 48, paragraph (3) with "Article 53, paragraph (3), item (i)"; the phrase "paragraph (1)" in Article 48, paragraph (4) with "Article 53, paragraph (3)"; the phrase "paragraph (1), item (i) of this Article" in Article 48, paragraph (5) with "Article 53, paragraph (3), item (i)"; the phrase "paragraph (1), item (i)" in Article 48, paragraph (6) with "Article 53, paragraph (3), item (i)"; the phrase "Article 48, paragraph (1), item (ii)" in Article 51, paragraph (2) with "Article 53, paragraph (3), item (ii)"; and the phrase "Article 48, paragraph (1), item (i)" in Article 51, paragraph (3) with "Article 53, paragraph (3), item (i)".

Where Article 30, paragraph (3), main clause of the Act has been applied in the taxable period of purchase, etc., the taxable sales ratio aggregated as provided by Cabinet Order, as prescribed in Article 33, paragraph (2) of the Act, is, notwithstanding paragraph (3), the ratio calculated in the manner provided in paragraph (3), based on the method of calculating the ratio approved under Article 30, paragraph (3), item (ii) of the Act.

Where a business operator prescribed in Article 33, paragraph (1) of the Act comes to be subject to the application of Article 30, paragraph (3), main clause of the Act, or comes to be no longer subject to the application of the main clause of that paragraph, in any of the taxable periods from the taxable period following the taxable period of purchase, etc. through the third-year taxable period, the taxable sales ratio aggregated as provided by Cabinet Order, as prescribed in Article 33, paragraph (2) of the Act, is, notwithstanding paragraph (3) or the preceding paragraph, the ratio calculated by dividing the ratio obtained by totaling the respective taxable sales ratios prescribed in Article 30, paragraph (2) of the Act and the ratios relating to the approval prescribed in paragraph (3) of that Article for the taxable periods included in the aggregate taxable period by the number of taxable periods included in the aggregate taxable period.

The ratio calculated as provided by Cabinet Order as the taxable rental ratio prescribed in Article 35-2, paragraph (3) of the Act is the proportion that the amount set out in item (ii) accounts for in the amount set out in item (i):

the remainder obtained by deducting, from the total amount of consideration for the lending of that residential rental building (limited to the portion held on the last day of the third-year taxable period prescribed in Article 35-2, paragraph (1) of the Act; the same applies in the following item) made by that business operator during the adjustment period (meaning the adjustment period prescribed in Article 35-2, paragraph (1) of the Act; the same applies hereinafter in this item and the following item), the total amount of refunds, etc. of consideration pertaining to transfers, etc. of assets prescribed in Article 48, paragraph (1), item (i) pertaining to that lending made during that adjustment period;

the remainder obtained by deducting, from the total amount of consideration for the lending (limited to lending put to taxable rental use (meaning taxable rental use prescribed in Article 35-2, paragraph (1) of the Act; the same applies in item (ii) of the following paragraph); the same applies in (a) and (b)) of that residential rental building made by that business operator during the adjustment period, the total of the amounts obtained by deducting the amount set out in (b) from the amount set out in (a):

the amount of refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act pertaining to that lending made during that adjustment period;

the amount calculated by multiplying the consumption tax on refunds, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act pertaining to that lending made during that adjustment period by 100/78.

The ratio calculated as provided by Cabinet Order as the taxable transfer ratio prescribed in Article 35-2, paragraph (3) of the Act is the proportion that the amount set out in item (ii) accounts for in the amount set out in item (i):

the remainder obtained by deducting, from the sum of the total amount of consideration for the lending of that residential rental building (where part of that residential rental building has been transferred, limited to the portion transferred; hereinafter the same applies in this item and the following item) made by that business operator during the taxable transfer adjustment period (meaning the taxable transfer adjustment period prescribed in Article 35-2, paragraph (3) of the Act; hereinafter the same applies in this item and the following item) and the amount of consideration for the transfer of that residential rental building made by that business operator, the total amount of refunds, etc. of consideration pertaining to transfers, etc. of assets prescribed in Article 48, paragraph (1), item (i) pertaining to that lending and that transfer made during that taxable transfer adjustment period;

the remainder obtained by deducting, from the sum of the total amount of consideration for the lending (limited to lending put to taxable rental use; the same applies in (a) and (b)) of that residential rental building made by that business operator during the taxable transfer adjustment period and the amount of consideration for the transfer of that residential rental building made by that business operator, the total of the amounts obtained by deducting the amount set out in (b) from the amount set out in (a):

the amount of refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act pertaining to that lending and that transfer made during that taxable transfer adjustment period;

the amount calculated by multiplying the consumption tax on refunds, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act pertaining to that lending and that transfer made during that taxable transfer adjustment period by 100/78.

Where Article 12-4, paragraph (2) of the Act applies to a residential rental building, Article 35-2 of the Act applies with the day on which the case prescribed in Article 36, paragraph (1) or (3) of the Act came to apply (or, where that residential rental building is an adjustment-target self-constructed high-value asset (meaning the adjustment-target self-constructed high-value asset prescribed in Article 12-4, paragraph (2) of the Act; the same applies hereinafter in this Article) and the construction, etc. (meaning the construction, etc. prescribed in Article 12-4, paragraph (1) of the Act; the same applies hereinafter in this Article) has not been completed by the day preceding that day, the day on which the construction, etc. of that adjustment-target self-constructed high-value asset was completed) treated as the day of purchase, etc. of the residential rental building prescribed in Article 35-2, paragraph (1) of the Act.

Where Article 50-2, paragraph (1) applies to a residential rental building, Article 35-2 of the Act applies only to the residential rental portion that, under that paragraph, has been subject to the application of Article 30, paragraph (10) of the Act.

Where Article 50-2, paragraph (2) applies to a residential rental building, Article 35-2 of the Act applies only to the amount of tax on taxable purchases, etc. relating to the residential rental building for the taxable period for which, under that paragraph, Article 30, paragraph (10) of the Act has been applied.

The transfer of a residential rental building under Article 35-2, paragraph (2) of the Act is to include a transfer of assets in lieu of performance of an obligation, the acts set out in Article 2, paragraph (1), items (i) through (iii), and those deemed to be transfers of assets under Article 2, paragraph (2).