Where a business operator receives, on or after the Effective Date, a refund, etc. of consideration for purchases prescribed in Article 32, paragraph (1) of the Consumption Tax Act (excluding one relating to a taxable purchase of virtual currency to which the main clause of paragraph (1) of the preceding Article (including where applied pursuant to paragraph (2) of that Article) applies) with respect to a taxable purchase of virtual currency made in Japan before the Effective 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 relating to that refund, etc. of consideration for purchases.

Where a business operator that transfers virtual currency (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, except in the following Article) has, before the Effective 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 Article) in Japan for use in the business relating to the transfer of virtual currency in Japan, or has, before the Effective Date, taken out of a bonded area prescribed in item (ii) of that paragraph taxable goods prescribed in item (xi) of that paragraph that fall under an adjustment-target fixed asset, then, for as long as it continues to use that adjustment-target fixed asset for that business on or after the Effective Date, Article 34 of that Act is applied by treating that adjustment-target fixed asset as being used for the business relating to taxable transfers, etc. of assets prescribed in Article 34, paragraph (1) of that Act.

①Where a business operator to which Article 36, paragraph (1) of the Consumption Tax Act applies on or after the Effective Date holds inventory (meaning inventory prescribed in Article 2, paragraph (1), item (xv) of that Act; the same applies hereinafter in this Article) relating to taxable purchases of virtual currency made in Japan before the Effective Date, the provisions then in force continue to govern the adjustment of the amount of consumption tax under Article 36, paragraph (1) of that Act relating to the inventory relating to those taxable purchases of virtual currency.

②Notwithstanding the preceding paragraph, where a business operator to which Article 36, paragraph (1) of the Consumption Tax Act applies on or after the Effective Date holds inventory relating to taxable purchases of virtual currency made in Japan during the period from June 1, 2017 to the day preceding the Effective Date, Article 36, paragraph (1) of that Act does not apply to the adjustment of the amount of consumption tax under that paragraph relating to the inventory relating to taxable purchases of virtual currency for the portion exceeding 1,000,000 yen of the value of the inventory relating to those taxable purchases of virtual currency (meaning the total of the amounts calculated by multiplying the quantity of virtual currency of each kind so held by the unit price by kind of that virtual currency and multiplying the result by 100/108).

③The provisions of Article 8, paragraph (2) of the Supplementary Provisions apply mutatis mutandis to the case of calculating the unit price by kind prescribed in the preceding paragraph.

④The provisions of the preceding three paragraphs apply mutatis mutandis to the case where an individual business operator or corporation prescribed in Article 36, paragraph (3) of the Consumption Tax Act succeeds to the business of a decedent, merged corporation or splitting corporation prescribed in that paragraph. In this case, in paragraphs (1) and (2), the phrase "Article 36, paragraph (1)" is deemed to be replaced with "Article 36, paragraph (3)", the phrase "business operator" with "individual business operator or corporation", and the phrase "made in Japan" with "made in Japan by the decedent, merged corporation or splitting corporation prescribed in that paragraph".

⑤Where a business operator to which Article 36, paragraph (5) of the Consumption Tax Act applies on or after the Effective Date holds inventory relating to taxable purchases of virtual currency made in Japan before the Effective Date, the provisions then in force continue to govern the adjustment of the amount of consumption tax under that paragraph relating to the inventory relating to those taxable purchases of virtual currency.

⑥Notwithstanding the preceding paragraph, where a business operator that is to become subject to Article 36, paragraph (5) of the Consumption Tax Act on or after the Effective Date holds inventory relating to taxable purchases of virtual currency made in Japan before the Effective Date (limited to inventory relating to the portion that, by the application of the main clause of Article 8, paragraph (1) of the Supplementary Provisions (including where applied pursuant to paragraph (2) of that Article), is not to be included in the amount of tax on taxable purchases, etc. that forms the basis for calculating the consumption tax on purchases; the same applies hereinafter in this paragraph), Article 36, paragraph (5) of the Consumption Tax Act does not apply to the adjustment of the amount of consumption tax under that paragraph relating to the inventory relating to those taxable purchases of virtual currency.

Where a business operator submits the written notification prescribed in Article 37, paragraph (1) of the Consumption Tax Act to the district director having jurisdiction over its place for tax payment during the period from the first day of a taxable period beginning on or after the Effective Date (limited to one in respect of which the business operator becomes able to be subject to the application of Article 37, paragraph (1) of that Act by the application of Article 3 and Article 5, paragraph (2) of the Supplementary Provisions, and excluding those listed in the items of Article 56, paragraph (1) of the Order for Enforcement of the Consumption Tax Act) to December 31, 2017, and that written notification states that it will be subject to the application of Article 37, paragraph (1) of the Consumption Tax Act for the taxable period that includes the day on which that written notification was submitted, Article 37, paragraph (1) of the Consumption Tax Act is applied as if that written notification had been submitted to that district director on the day preceding the first day of that taxable period.

Where a business operator makes a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Consumption Tax Act with respect to a transfer of virtual currency made in Japan before the Effective Date, the provisions then in force continue to govern the deduction of the amount of consumption tax under Article 38 of that Act relating to that refund, etc. of consideration for sales.

Where a business operator has become unable to collect all or part of the tax-inclusive price prescribed in Article 39, paragraph (1) of the Consumption Tax Act of a transfer of virtual currency because a fact prescribed in that paragraph has occurred with respect to accounts receivable or other claims relating to a transfer of virtual currency made in Japan before the Effective Date, the provisions then in force continue to govern the deduction, etc. of the amount of consumption tax under Article 39 of that Act relating to the transfer of virtual currency that has become uncollectible.

With regard to the application of penal provisions to acts committed before the enforcement of this Cabinet Order and to acts committed after the enforcement of this Cabinet Order in relation to consumption tax for which the provisions then in force continue to govern pursuant to these Supplementary Provisions, the provisions then in force continue to govern.