This Cabinet Order comes into effect on April 1, 2014.

①The provisions of Article 5 of the Order for Enforcement of the Consumption Tax Act after the amendment (hereinafter referred to as the "New Order") apply to assets pertaining to taxable purchases (meaning taxable purchases prescribed in Article 2, paragraph (1), item (xii) of the Consumption Tax Act; the same applies hereinafter) made in Japan on or after April 1, 2014 (hereinafter referred to as the "Effective Date") by a business operator (meaning a business operator prescribed in item (iv) of that paragraph; the same applies hereinafter) and to assets taken out of a bonded area (meaning a bonded area prescribed in item (ii) of that paragraph; the same applies hereinafter in this Article and Article 14 of the Supplementary Provisions) on or after the Effective Date, and the provisions then in force continue to govern assets pertaining to taxable purchases made in Japan by a business operator before the Effective Date and assets taken out of a bonded area before the Effective Date.

②Notwithstanding the preceding paragraph, with respect to the application of Article 5 of the New Order to assets (limited to the portion to which those provisions apply) to which Article 5, paragraph (3) and Article 7, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Consumption Tax Act, etc., and Other Matters to Carry Out a Drastic Reform of the Tax System for Securing Stable Financial Resources for Social Security, etc. (hereinafter referred to as the "Amending Act") and Article 5, paragraphs (1) through (3) of the Supplementary Provisions apply, the phrase "100/108" in Article 5 of the New Order is deemed to be replaced with "100/105".

①Where a business operator has made a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Consumption Tax Act as amended by the provisions of Article 2 of the Amending Act (hereinafter referred to as the "New Act") with respect to taxable transfers, etc. of assets (meaning taxable transfers, etc. of assets prescribed in Article 2, paragraph (1), item (ix) of the Consumption Tax Act; the same applies hereinafter) made in Japan before the Effective Date, the provisions then in force continue to govern the calculation of the taxable sales in each business year prescribed in Article 22, paragraph (1) of the New Order and the taxable sales in the specified business year prescribed in Article 23, paragraph (4) of the New Order relating to that refund, etc. of consideration for sales.

②Where a person subject to determination prescribed in Article 25-4, paragraph (1) of the New Order has made a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the New Act with respect to taxable transfers, etc. of assets made in Japan before the Effective Date, then, in the calculation of the taxable sales in the period corresponding to the base period prescribed in Article 25-4, paragraph (1) of the New Order relating to that refund, etc. of consideration for sales, the phrase "80/63" in item (ii) of that paragraph is deemed to be replaced with "125/100".

①The consideration for taxable transfers, etc. of assets prescribed in Article 5, paragraph (1) of the Supplementary Provisions of the Amending Act that is specified by Cabinet Order is the following:

②The taxable transfers, etc. of assets specified by Cabinet Order prescribed in Article 5, paragraph (2) of the Supplementary Provisions of the Amending Act are the following taxable transfers, etc. of assets, for which the right to receive payment of charges is fixed on the basis of meter reading or any act similar thereto:

③The portion specified by Cabinet Order prescribed in Article 5, paragraph (2) of the Supplementary Provisions of the Amending Act is the portion relating to the amount calculated by dividing the charges for which the right to receive payment is first fixed on or after the Effective Date, among the taxable transfers, etc. of assets by specified continuous supply prescribed in that paragraph, by the number of months in the period from the previous fixing date (meaning the day on which the right to receive payment of the immediately preceding charges was fixed; the same applies hereinafter in this paragraph) to the day on which the right to receive payment of charges is first fixed on or after the Effective Date, and multiplying the result by the number of months in the period from the previous fixing date to April 30, 2014.

④The number of months set forth in the preceding paragraph is calculated according to the calendar; a division of less than one month is counted as one month.

⑤The contracts specified by Cabinet Order prescribed in Article 5, paragraph (3) of the Supplementary Provisions of the Amending Act are, among contracts relating to surveying, geological surveys, surveys concerning the execution of construction work, planning, drafting and supervision, and design, film production, software development and other work contracts (including mandates and other contracts similar to work contracts), those for which completion of the work requires a long period and delivery of the subject matter of the work is to be made in one lump, and in which the other party's order is attached concerning the content of the work under the contract (including contracts relating to the transfer of a building that relate to a building constructed in response to an order by the person receiving the transfer of the building concerning the interior or exterior finishing of the building or the installation or structure of its facilities).

⑥The requirements specified by Cabinet Order prescribed in Article 5, paragraph (4), item (iii) of the Supplementary Provisions of the Amending Act are that the contract provides that the proportion accounted for by the total amount of consideration for the lending of assets paid during the contract period, in the total of the amount of expenses required to acquire the assets relating to that lending and the amount of incidental expenses (including the amount of interest or insurance premiums), is 90/100 or more.

⑦The contracts specified by Cabinet Order under which all or part of the consideration is paid in installments in advance of the provision of services prescribed in Article 5, paragraph (5) of the Supplementary Provisions of the Amending Act are, among contracts relating to specified prepaid transactions prescribed in Article 2, paragraph (6) of the Installment Sales Act (Act No. 159 of 1961), those relating to the provision of designated services prescribed in that paragraph.

①Where, with respect to books or other goods that a business operator transfers under a contract concluded before October 1, 2013 (hereinafter referred to as the "designated day") that promises periodic and continuous supply to unspecified and numerous persons, all or part of the consideration for that transfer stipulated in that contract has been received before the Effective Date, and the business operator transfers on or after the Effective Date the books or other goods relating to the receipt of that consideration, the consumption tax on the taxable transfer, etc. of assets for the portion of the taxable transfers, etc. of assets relating to those books or other goods that relates to the consideration so received is at the rate prescribed in Article 29 of the Consumption Tax Act prior to the amendment by the provisions of Article 2 of the Amending Act (hereinafter referred to as the "Former Act").

②Where a business operator transfers specified newspapers (meaning newspapers issued periodically to unspecified and numerous persons at intervals of a week, a month or any other fixed period, for which the issuer designates the sale date, and the designated date is before the Effective Date) on or after the Effective Date, the consumption tax on the transfer of those specified newspapers is at the rate prescribed in Article 29 of the Former Act.

③Where a business operator that sells goods by the method of mail order sale (meaning the sale of goods carried out by presenting the content of the goods, the sales price and other conditions to unspecified and numerous persons, receiving offers for sales contracts by mail, telephone or other methods, and following the conditions so presented, and excluding sales relating to the contracts prescribed in paragraph (1)) has presented those conditions, or has completed preparations to present them, before the designated day, and sells goods on or after the Effective Date in accordance with the conditions so presented, in response to offers received before the Effective Date, the consumption tax on the sale of those goods is at the rate prescribed in Article 29 of the Former Act.

④Where a business operator has continued, from before the Effective Date, to make on or after the Effective Date transfers, etc. of assets (meaning transfers, etc. of assets prescribed in Article 2, paragraph (1), item (viii) of the Consumption Tax Act; the same applies in paragraph (1) of the following Article and Article 8, paragraph (1) of the Supplementary Provisions) relating to a lifetime residence contract (meaning a contract under which the other party to the contract acquires the right to reside for life in a fee-based home for the elderly by paying a lump sum when moving into that home) for a fee-based home for the elderly prescribed in Article 29, paragraph (1) of the Act on Social Welfare for the Elderly (Act No. 133 of 1963) that the business operator concluded during the period from October 1, 1996 to the day preceding the designated day, in which the consideration for the provision of services relating to care during the period of residence (excluding those that fall under transfers, etc. of assets set out in Appended Table 1, item (vii) of the Consumption Tax Act) is paid as a lump sum upon moving in and there is no provision that the business operator may request a change in the amount of that lump sum due to a change in circumstances or for any other reason, the consumption tax on the provision of those services made on or after the Effective Date (limited to the portion corresponding to that lump sum) is at the rate prescribed in Article 29 of the Former Act; provided, however, that this does not apply to the provision of those services made after a change where the amount of that lump sum has been changed on or after the designated day.

⑤In the application of Article 38, paragraph (1) and Article 39, paragraph (1) of the New Act to taxable transfers, etc. of assets to which paragraphs (1) through (3) or the main clause of the preceding paragraph applies, the phrase "8/100" in Article 38, paragraph (1) of the New Act is deemed to be replaced with "5/100" and "6.3/108" with "4/105", and the phrase "6.3/108" in Article 39, paragraph (1) of the New Act is deemed to be replaced with "4/105".

⑥In the application of Article 30, paragraph (1), Article 32, paragraph (1) and Article 36, paragraph (1) of the New Act where a business operator has acquired, from a business operator to which paragraphs (1) through (3) have applied, assets relating to a taxable transfer, etc. of assets to which those provisions have applied, or has received the provision of services relating to that taxable transfer, etc. of assets, the phrase "6.3/108" in those provisions is deemed to be replaced with "4/105".