Order for Enforcement of the Consumption Tax Act

The provisions of Article 9, paragraphs (1) and (4) and Article 10, paragraph (3) of the New Order and the provisions of Article 48, paragraphs (2) and (5) of the New Order (including where these provisions are applied mutatis mutandis pursuant to Article 53, paragraph (4) of the Order for Enforcement of the Consumption Tax Act; the same applies in the following paragraph) apply to consumption tax pertaining to transfers, etc. of assets made by a business operator in Japan on or after the day specified in Article 1, item (iii) of the Supplementary Provisions (hereinafter in this Article referred to as the "cryptoasset application date") and to taxable purchases made by a business operator in Japan on or after the cryptoasset application date, and the provisions then in force continue to govern consumption tax pertaining to transfers, etc. of assets made by a business operator in Japan before the cryptoasset application date and to taxable purchases made by a business operator in Japan before the cryptoasset application date.

No English for the wording before the change.

Notwithstanding the preceding paragraph, in the case where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of the Consumption Tax Act; the same applies hereinafter in this Article and the following Article) has, in Japan before the cryptoasset application date, made a taxable purchase of an adjustment-target fixed asset (meaning an adjustment-target fixed asset prescribed in Article 2, paragraph (1), item (xvi) of that Act; the same applies hereinafter in this paragraph and paragraph (5)) or taken taxable goods prescribed in Article 2, paragraph (1), item (xi) of that Act that fall under an adjustment-target fixed asset out of a bonded area prescribed in item (ii) of that paragraph (hereinafter in this paragraph and paragraph (5) referred to as a "purchase, etc. of an adjustment-target fixed asset") (limited to the case where that business operator (including an heir who has succeeded to the business of that business operator relating to that adjustment-target fixed asset through inheritance, a merging corporation that has succeeded to that business through a merger, and a successor corporation in a company split that has succeeded to that business through a company split, in each case as prescribed in Article 33, paragraph (1) of that Act, but excluding, among these persons, those exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of that Act) holds that adjustment-target fixed asset on the last day of the third-year taxable period prescribed in Article 33, paragraph (1) of that Act pertaining to that purchase, etc. of an adjustment-target fixed asset), the provisions then in force may continue to govern the application of Article 10, paragraph (3) of the New Order and Article 48, paragraphs (2) and (5) of the New Order in the calculation of the aggregate taxable sales ratio in the third-year taxable period prescribed in Article 33, paragraph (1) of that Act pertaining to that purchase, etc. of an adjustment-target fixed asset and of the taxable sales ratio prescribed in that paragraph in the taxable period of purchase, etc. prescribed in that paragraph.

Where a business operator has, on or after the cryptoasset application date, received a refund, etc. of consideration for purchases prescribed in Article 32, paragraph (1) of the Consumption Tax Act with respect to a taxable purchase pertaining to the lending of cryptoassets or electronic payment instruments prescribed in Article 9, paragraph (1), item (i) of the New Order (hereinafter in this Article referred to as "cryptoassets, etc.") made in Japan before the cryptoasset application date, the provisions then in force continue to govern the calculation of the deduction of consumption tax on purchases under Article 32 of that Act pertaining to that refund, etc. of consideration for purchases.

Where a business operator that lends cryptoassets, etc. has made, in Japan before the cryptoasset application date, a purchase, etc. of an adjustment-target fixed asset for use in the business pertaining to the lending of cryptoassets, etc. in Japan, then, for as long as that business operator (including an heir who has succeeded to the business of that business operator relating to that adjustment-target fixed asset through inheritance, a merging corporation that has succeeded to that business through a merger, and a successor corporation in a company split that has succeeded to that business through a company split, in each case as prescribed in Article 34, paragraph (1) of the Consumption Tax Act, but excluding, among these persons, those exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of that Act) continues, on or after the cryptoasset application date, to use that adjustment-target fixed asset for that business, that adjustment-target fixed asset is deemed to be used for the business pertaining to the taxable transfers, etc. of assets prescribed in Article 2, paragraph (1), item (ix) of that Act, and Article 34 of that Act applies.

Where a business operator has, with respect to a lending of cryptoassets, etc. made in Japan before the cryptoasset application date, made a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Consumption Tax Act, the provisions then in force continue to govern the deduction of the amount of consumption tax under Article 38 of that Act pertaining to that refund, etc. of consideration for sales.

Where, with respect to accounts receivable or other claims pertaining to the amount of consideration (meaning the amount of consideration prescribed in Article 28, paragraph (1) of the Consumption Tax Act) for a lending of cryptoassets, etc. made by a business operator in Japan before the cryptoasset application date, a fact prescribed in Article 39, paragraph (1) of that Act has occurred and, as a result, it has become impossible to collect all or part of the tax-inclusive price referred to in that paragraph for that lending of cryptoassets, etc., the provisions then in force continue to govern the deduction of the amount of consumption tax under that paragraph and the addition of the amount of consumption tax under paragraph (3) of that Article pertaining to the lending of cryptoassets, etc. for which collection has become impossible.