Order for Enforcement of the Consumption Tax Act

Where a business operator (limited to a qualified invoice issuer) conducts a taxable transfer, etc. of assets in Japan through a person engaged in business relating to intermediation or brokerage (limited to a qualified invoice issuer; hereinafter in this Article referred to as an "intermediary, etc."), if, by the time of that taxable transfer, etc. of assets, the intermediary, etc. has been notified by that business operator that it has received registration, the intermediary, etc. may, in place of the matters to be stated pursuant to Article 57-4, paragraph (1) of the Act (limited to the part relating to item (i)), the matters to be stated pursuant to paragraph (2) of that Article (limited to the part relating to item (i)) or the matters to be stated pursuant to paragraph (3) of that Article (limited to the part relating to item (i)), deliver or provide, on behalf of that business operator, to the other person that receives that taxable transfer, etc. of assets, a qualified invoice, qualified simplified invoice or qualified return invoice relating to that taxable transfer, etc. of assets stating the name or title of that intermediary, etc. and the registration number of that intermediary, etc. prescribed in Article 57-2, paragraph (4) of the Act (hereinafter through Article 70-14 referred to as a "qualified invoice, etc."), or an electronic or magnetic record relating to the matters to be stated in a qualified invoice, etc. (meaning the electronic or magnetic record prescribed in Article 57-4, paragraph (5) of the Act; the same applies hereinafter in this Article and the following Article). In this case, the intermediary, etc. must retain a copy of that qualified invoice, etc. or that electronic or magnetic record, as specified by Ministry of Finance Order.

The provisions of Article 57-4, paragraph (4) of the Act apply mutatis mutandis where there is an error in the matters stated in a qualified invoice, etc. delivered by an intermediary, etc. under the application of the preceding paragraph, and the provisions of the second sentence of paragraph (5) of that Article apply mutatis mutandis where there is an error in the matters provided by an intermediary, etc. under the application of the preceding paragraph as an electronic or magnetic record relating to the matters to be stated in a qualified invoice, etc. In this case, the phrase "A qualified invoice issuer" in Article 57-4, paragraph (4) of the Act is deemed to be replaced with "An intermediary, etc. prescribed in Article 70-12, paragraph (1) of the Order for Enforcement of the Consumption Tax Act".

Where an intermediary, etc. has, pursuant to paragraph (1), delivered a qualified invoice, etc. on behalf of the business operator referred to in that paragraph, or provided an electronic or magnetic record relating to the matters to be stated in a qualified invoice, etc., the intermediary, etc. must promptly deliver or provide to that business operator a copy of that qualified invoice, etc. or that electronic or magnetic record.

Where a business operator that has given the notification under paragraph (1) ceases to be a qualified invoice issuer, that business operator must promptly notify the intermediary, etc. that received the notification to that effect.

Where a business operator (limited to a qualified invoice issuer) conducts a taxable transfer, etc. of assets in Japan by a compulsory liquidation procedure prescribed in Article 2, item (xii) (Definitions) of the National Tax Collection Act (Act No. 147 of 1959) through an enforcement agency (meaning the enforcement agency prescribed in item (xiii) of that Article; the same applies hereinafter in this Article), the enforcement agency may, in place of the matters to be stated pursuant to Article 57-4, paragraph (1) of the Act (limited to the part relating to item (i)), deliver or provide, on behalf of that business operator, to the other person that receives that taxable transfer, etc. of assets, a qualified invoice relating to that taxable transfer, etc. of assets stating the name of that enforcement agency and that it is subject to the application of this paragraph, or an electronic or magnetic record relating to the matters to be stated in a qualified invoice. In this case, the enforcement agency must retain a copy of that qualified invoice or that electronic or magnetic record, as specified by Ministry of Finance Order.

The provisions of paragraphs (2) and (3) apply mutatis mutandis to an enforcement agency that is subject to the application of the preceding paragraph.

Beyond what is prescribed in the preceding paragraphs, necessary matters concerning the delivery of qualified invoices, etc. by an intermediary, etc. or an enforcement agency are specified by Ministry of Finance Order.

A qualified invoice issuer that has delivered a qualified invoice, etc. must organize a copy of that qualified invoice, etc. (or, where it has provided an electronic or magnetic record relating to the matters to be stated in the qualified invoice, etc. pursuant to Article 57-4, paragraph (5) of the Act, that electronic or magnetic record) and retain it, for seven years from the day on which two months (one month where the residual assets of a corporation in liquidation have been finalized; the same applies in the following paragraph) have elapsed from the day following the last day of the taxable period that includes the day on which it was delivered (or, where that electronic or magnetic record was provided, the day on which it was provided), at its place for tax payment or at the location of the office, place of business or other equivalent facility relating to the transaction.

Retention under the preceding paragraph (excluding retention of electronic or magnetic records under that paragraph) during the period on or after the day on which five years have elapsed from the day on which two months have elapsed from the day following the last day of the taxable period prescribed in the preceding paragraph may be by a method determined by the Minister of Finance.

The persons specified by Cabinet Order prescribed in the proviso to Article 57-6, paragraph (1) of the Act are the persons specified in the relevant one of the following items for the category of voluntary partnership, etc. (meaning the voluntary partnership, etc. prescribed in that paragraph; the same applies hereinafter in this Article) listed in that item:

a partnership formed by a partnership contract prescribed in Article 667, paragraph (1) (Partnership Contracts) of the Civil Code (Act No. 89 of 1896): among the partners of that partnership, the person who executes business prescribed in Article 670, paragraph (3) (Methods of Deciding and Executing Business) of that Act (where there are multiple such persons who execute business, one of those persons who execute business, and where there is no person who executes business, one of the partners of that partnership);

an investment limited partnership prescribed in Article 2, paragraph (2) (Definitions) of the Limited Partnership Act for Investment (Act No. 90 of 1998): the general partner with unlimited liability who executes the business of that investment limited partnership (where there are multiple such general partners with unlimited liability, one of those partners);

a limited liability partnership prescribed in Article 2 (Definitions) of the Limited Liability Partnership Act (Act No. 40 of 2005): the partner prescribed in Article 29, paragraph (3) (Preparation and Retention of Accounting Books) of that Act who executes the business of that limited liability partnership;

an organization established under the laws and regulations of a foreign country that is similar to the partnerships set forth in the preceding three items: a person equivalent to the persons specified in the preceding three items.

When intending to be subject to the application of the proviso to Article 57-6, paragraph (1) of the Act, a written notification stating the matters specified by Ministry of Finance Order, with a copy of the partnership contract or other similar document relating to the voluntary partnership, etc. listed in the items of the preceding paragraph attached, must be submitted to the district director having jurisdiction over the place for tax payment of the executive partner relating to that voluntary partnership, etc. (meaning the executive partner prescribed in Article 57-6, paragraph (1) of the Act; the same applies in the following paragraph and paragraph (4)).

An executive partner that has submitted a written notification under the proviso to Article 57-6, paragraph (1) of the Act must, where there is a change in the matters stated in that written notification, promptly submit a written notification stating that fact, with a copy of the partnership contract or other similar document relating to the voluntary partnership, etc. listed in the items of paragraph (1) attached, to the district director having jurisdiction over its place for tax payment.

Where a voluntary partnership, etc. that has submitted a written notification under the proviso to Article 57-6, paragraph (1) of the Act is dissolved and its liquidation is completed, the liquidator relating to that liquidation must submit a written notification stating that fact to the district director having jurisdiction over the place for tax payment of the executive partner relating to that voluntary partnership, etc.

With regard to taxable transfers, etc. of assets relating to the business of a voluntary partnership, etc. that has submitted a written notification under the proviso to Article 57-6, paragraph (1) of the Act, among the matters that are to be stated in a qualified invoice, etc. pursuant to Article 57-4, paragraphs (1) through (3) of the Act, the matters set forth in paragraph (1), item (i), paragraph (2), item (i) and paragraph (3), item (i) of that Article may, notwithstanding those provisions, be the name or title of any one of the partners of that voluntary partnership, etc., the registration number of that partner under Article 57-2, paragraph (4) of the Act, and the name of that voluntary partnership, etc.

A special filer prescribed in Article 58 of the Act (excluding a business operator prescribed in paragraph (1) that is not subject to the application of Article 37, paragraph (1) of the Act; referred to as a "special filer" in the following paragraph) must keep books and record in them, in an orderly and clear manner, the matters specified by Ministry of Finance Order concerning the taking out of taxable goods (limited to taxable goods covered by a special return prescribed in Article 7-2, paragraph (2) (Special Provisions on Declaration) of the Customs Act; referred to as "goods covered by a special return" in the following paragraph) from a bonded area.

A special filer must organize the books recorded pursuant to the preceding paragraph and retain them, for seven years from the day following the last day of the month following the month that includes the day of import permission for the goods covered by a special return, at the head office or principal office of that special filer, at the location of an office, place of business or other equivalent facility relating to the import transaction of those goods covered by a special return, or at the place of address of that special filer.