Order for Enforcement of the Consumption Tax Act

In this Cabinet Order, the meanings of the terms set out in the following items are as prescribed respectively in those items.

resident: means a resident prescribed in Article 6, paragraph (1), item (v) (Definitions) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949);

non-resident: means a non-resident prescribed in Article 6, paragraph (1), item (vi) of the Foreign Exchange and Foreign Trade Act;

registered government bond: means a national government bond registered under the provisions of the Act on National Government Bonds (Act No. 34 of 1906);

national government bonds, etc.: means the securities or bonds set out in Article 2, paragraph (1), items (i) through (v) (Definitions) of the Financial Instruments and Exchange Act (Act No. 25 of 1948), the investment corporation bonds set out in item (xi) of that paragraph, and foreign securities or bonds similar to these (including those whose attribution of rights is determined by entry or record in a transfer account book under the provisions of the Act on Book-Entry Transfer of Corporate Bonds and Shares (Act No. 75 of 2001)), and registered government bonds.

In this Cabinet Order, "lending of assets" is to include the creation of rights relating to assets and any other act of allowing another person to use assets (excluding, among those acts, those that fall under the supply of telecommunications services).

In this Cabinet Order, "inheritance" is to include a universal bequest, "heir" is to include a universal legatee, and "decedent" is to include a person who has made a universal bequest.

The acts specified by Cabinet Order as being similar to the transfer or lending of assets or the provision of services conducted for consideration, as prescribed in Article 2, paragraph (1), item (viii) of the Act, are as follows:

the transfer of assets by a gift with a burden;

a contribution of assets other than money (excluding one relating to succession under a special Act);

the transfer of assets in the case where the settlor of a specified beneficiary certificate issuance trust prescribed in Article 2, item (xxix), (c) (Definitions) of the Corporation Tax Act (Act No. 34 of 1965) or of a trust subject to corporate taxation prescribed in item (xxix)-2 of that Article (excluding a trust set out in (b) of that item; hereinafter in this item referred to as a "trust subject to corporate taxation") has placed in trust assets that it holds (limited to assets other than money), and a contribution deemed under Article 4-3, item (ix) (Application of This Act to Trust Corporations) of the Corporation Tax Act to have been made in the case where a trust under which a beneficiary prescribed in Article 14, paragraph (1) of the Act (including a person deemed under paragraph (2) of that Article to be a beneficiary prescribed in paragraph (1) of that Article) is deemed under Article 14, paragraph (1) of the Act to hold the assets belonging to its trust property has come to fall under a trust subject to corporate taxation (limited to a contribution deemed to have been made with respect to assets other than money);

the taking of an assignment of, or other succession to (excluding comprehensive succession), monetary claims such as claims on loans;

broadcasting prescribed in Article 2, item (i) (Definitions) of the Broadcasting Act (Act No. 132 of 1950), or distribution prescribed in item (xxxi) of that Article, that is conducted by collecting reception fees under a contract that, under an Act, the recipient is required to conclude.

Where a business operator has had its ownership or other rights expropriated under the provisions of the Expropriation of Land Act (Act No. 219 of 1951) or other Acts and has obtained compensation for the extinction of those rights from the person that acquires those rights, the business operator is deemed to have transferred assets for consideration.

Transfers, etc. of assets are to include the transfer and lending of assets and the provision of services that, by their nature, are conducted for consideration incidentally to a business.

The provision of services specified by Cabinet Order as prescribed in Article 2, paragraph (1), item (viii)-5 of the Act is, among the provision of services conducted as a business whose main content is the provision of services by film or stage actors, musicians or other entertainers, or professional athletes, the provision of services conducted by a foreign business operator for another business operator (excluding the provision of services conducted by that foreign business operator for unspecified and numerous persons).

The assets specified by Cabinet Order as prescribed in Appended Table 1, item (i) of the Act are the following assets:

assets in which food (meaning food as prescribed in Appended Table 1, item (i) of the Act; the same applies hereinafter in this Article) and assets other than food form or constitute a single asset (limited to those that have been formed or constituted as a single asset in advance and for which only the price of that single asset is presented; hereinafter in this item referred to as a "combined asset"), among which the amount of consideration for the transfer of the combined asset (meaning the amount of consideration prescribed in Article 28, paragraph (1) of the Act) is 10,000 yen or less and the ratio, calculated by a reasonable method, of the value of the portion relating to the food included in the combined asset to the value of the combined asset is two-thirds or more;

foreign goods in which food and assets other than food form or constitute a single asset (limited to those that fall under goods belonging to one classification for the purposes of applying the Appended Table to the Customs Tariff Act (Act No. 54 of 1910); hereinafter in this item referred to as "combined goods"), among which the amount that is the tax base of consumption tax on combined goods taken out of a bonded area is 10,000 yen or less and the ratio, calculated by a reasonable method, of the value of the portion relating to the food included in the combined goods to the value of the combined goods is two-thirds or more.

The business specified by Cabinet Order as prescribed in Appended Table 1, item (i), (a) of the Act is a business of having food and drink items (meaning food and drink items as prescribed in item (i) of that Table; the same applies in the following paragraph) eaten or drunk on the spot, such as the restaurant business prescribed in Article 34-2, item (ii) (Small-Scale Operators, etc.) of the Order for Enforcement of the Food Sanitation Act (Cabinet Order No. 229 of 1953).

The facilities specified by Cabinet Order as prescribed in Appended Table 1, item (i), (b) of the Act are the facilities set out in the following items, and the provision of food and drink items specified by Cabinet Order as prescribed in item (i), (b) of that Table is, according to the category of facilities set out in the following items, the provision of food and drink items specified in the relevant item (limited to the provision of food and drink items that meet the criteria determined by the Minister of Finance, and excluding transfers, etc. of assets designated by the Minister of Finance under Article 14-2, paragraphs (1) through (3)).

a fee-based home for the elderly prescribed in Article 29, paragraph (1) (Notification, etc.) of the Act on Social Welfare for the Elderly (Act No. 133 of 1963) for which the notification under the provisions of that paragraph has been made (excluding one that falls under the facilities set out in the following item): the provision of food and drink items that a person who establishes or operates that fee-based home for the elderly conducts for its residents (limited to those who fall under requirements such as age specified by Ministry of Finance Order);

a housing for the elderly with services prescribed in Article 5, paragraph (1) (Registration of Housing for the Elderly with Services Business) of the Act on Securement of Stable Supply of Elderly Persons' Housing (Act No. 26 of 2001) that has received the registration prescribed in Article 6, paragraph (1) (Application for Registration) of that Act: the provision of food and drink items that a person who establishes or operates that housing for the elderly with services conducts for the residents of that housing for the elderly with services;

the facilities of the compulsory education schools prescribed in Article 3, paragraph (2) (Definitions) of the School Lunch Program Act (Act No. 160 of 1954): the provision of food and drink items that the founder of those compulsory education schools conducts for all of their pupils or students as school lunches (meaning school lunches prescribed in paragraph (1) of that Article; the same applies in item (vi));

the facilities of the high school with night courses prescribed in Article 2 (Definitions) of the Act on School Lunch Program for High School with Night Courses (Act No. 157 of 1956): the provision of food and drink items that the founder of that high school conducts, as the night school lunches prescribed in that Article, for all of the students who receive the education conducted in those night courses;

the facilities of the kindergarten section or high school section of a school for special needs education prescribed in Article 2 (Definitions) of the Act on School Lunch Program for Kindergarten Section and High School Section of Schools for Special Needs Education (Act No. 118 of 1957): the provision of food and drink items that the founder of that school for special needs education conducts, as the school lunches prescribed in that Article, for all of its infants or students;

the facilities of a kindergarten prescribed in Article 1 (Scope of Schools) of the School Education Act (Act No. 26 of 1947): the provision of food and drink items that the founder of that kindergarten conducts, in conformity with school lunches, for all of the infants who receive education at its facilities;

a dormitory established at a school for special needs education prescribed in Article 1 of the School Education Act pursuant to Article 78 (Obligation to Establish Dormitories) of that Act: the provision of food and drink items that the founder of that dormitory conducts for the infants, pupils or students who board in that dormitory.