Regulation for Enforcement of the Consumption Tax Act

The method specified by Ministry of Finance Order prescribed in Article 57-4, paragraph (6) of the Act is a method of retaining the electronic or magnetic records prescribed in that paragraph by taking any of the measures listed in the items of Article 4, paragraph (1) (Retention of Electronic or Magnetic Records of Transaction Information of Electronic Transactions) of the Regulation for Enforcement of the Act on Special Provisions concerning Preservation Methods for Books and Documents Related to National Tax Prepared by Means of Computers, and in accordance with requirements equivalent to the requirements prescribed in that paragraph.

Notwithstanding Article 70-13, paragraph (1) of the Order and the preceding paragraph, a business operator that retains the electronic or magnetic records prescribed in Article 57-4, paragraph (6) of the Act pursuant to those provisions may adopt the method of retaining a document prepared by outputting those electronic or magnetic records (limited to one output in an orderly format and in a clear condition). In this case, that business operator must organize and retain that document at the place where it is to be retained pursuant to Article 70-13, paragraph (1) of the Order, for the period for which it is to be retained pursuant to that paragraph.

The matters specified by Ministry of Finance Order prescribed in Article 70-14, paragraph (2) of the Order are the following:

the notifier's name or title (including the name of the representative; the same applies hereinafter in this item, in item (i) of the following paragraph and in paragraph (3), item (i)), place for tax payment, and corporate number (for a person that has no corporate number, the name or title and place for tax payment);

the name of the voluntary partnership, etc. prescribed in Article 57-6, paragraph (1) of the Act relating to the notifier and the location of the office or similar place relating to the business of that voluntary partnership, etc.;

the names or titles and registration numbers of all partners of that voluntary partnership, etc.;

the content of the business, and the duration, of that voluntary partnership, etc.;

any other matters for reference.

A written notification under Article 70-14, paragraph (3) of the Order must state the following matters:

the notifier's name or title, place for tax payment, and corporate number (for a person that has no corporate number, the name or title and place for tax payment);

the name of the voluntary partnership, etc. prescribed in Article 57-6, paragraph (1) of the Act relating to the notifier and the location of the office or similar place relating to the business of that voluntary partnership, etc.;

the details of the change;

any other matters for reference.

A written notification under Article 70-14, paragraph (4) of the Order must state the following matters:

the notifier's name or title, place for tax payment, and corporate number (for a person that has no corporate number, the name or title and place for tax payment);

the name of the voluntary partnership, etc. prescribed in Article 57-6, paragraph (1) of the Act relating to the notifier and the location of the office or similar place relating to the business of that voluntary partnership, etc.;

the date on which the liquidation of that voluntary partnership, etc. was completed;

any other matters for reference.

The matters specified by Ministry of Finance Order prescribed in Article 71, paragraph (1) of the Order are the following:

among matters relating to transfers, etc. of assets conducted in Japan (excluding those falling under specified transfers, etc. of assets; hereinafter the same applies in this paragraph and paragraph (3)), the following:

the name or title of the counterparty to the transfer, etc. of assets;

the date on which the transfer, etc. of assets was conducted;

the content of the assets or services relating to the transfer, etc. of assets (where the transfer, etc. of assets is a taxable transfer, etc. of assets subject to the reduced rate, the content of the assets and a statement that it is a taxable transfer, etc. of assets subject to the reduced rate) (for a business operator to which Article 37, paragraph (1) of the Act applies, where the transfer, etc. of assets is a taxable transfer, etc. of assets (excluding one for which consumption tax is exempted under the provisions of Article 7, paragraph (1) of the Act, Article 8, paragraph (1) of the Act or any other Act or treaty), including the type of business listed in Article 57, paragraph (5), items (i) through (vi) of the Order);

the amount of consideration for the transfer, etc. of assets, classified by each different tax rate (meaning the amount of all money, or anything other than money, or rights or other economic benefits, received or to be received as consideration, and, where the transfer, etc. of assets falls under a taxable transfer, etc. of assets, including an amount equivalent to the amount of consumption tax and the amount of local consumption tax relating to that taxable transfer, etc. of assets (excluding an amount equivalent to the amount of accessory tax relating to those amounts of tax));

among matters relating to a refund, etc. of consideration for a transfer, etc. of assets conducted in Japan (meaning, with respect to a transfer, etc. of assets, the refund of all or part of the amount of consideration for that transfer, etc. of assets, or the reduction of all or part of the amount of accounts receivable or other claims relating to the amount of consideration for that transfer, etc. of assets, by reason of having accepted a returned item or granted a price reduction or rebate, and excluding a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act; hereinafter the same applies in this item), the following:

the name or title of the person that received the refund, etc. of consideration for the transfer, etc. of assets;

the date on which the refund, etc. of consideration for the transfer, etc. of assets was made;

the content of the refund, etc. of consideration for the transfer, etc. of assets;

the amount of the refund, etc. of consideration for the transfer, etc. of assets that was made;

among matters relating to a refund, etc. of consideration for purchases (meaning a refund, etc. of consideration for purchases prescribed in Article 32, paragraph (1) of the Act, and excluding a refund, etc. of consideration for specified taxable purchases prescribed in Article 38-2, paragraph (1) of the Act; hereinafter the same applies in this item), the following:

the name or title of the person that made the refund, etc. of consideration for purchases;

the date on which the refund, etc. of consideration for purchases was received;

the content of the refund, etc. of consideration for purchases (where that refund, etc. of consideration for purchases relates to a taxable transfer, etc. of assets subject to the reduced rate received from another person, the content of the refund, etc. of consideration for purchases and a statement that it relates to a taxable transfer, etc. of assets subject to the reduced rate);

the amount of the refund, etc. of consideration for purchases that was received;

in the case where a refund is received under the provisions of an Act of all or part of the amount of consumption tax (excluding an amount equivalent to the amount of accessory tax) relating to taxable goods taken out of a bonded area, among matters relating to those taxable goods, the following:

the name of the customs office having jurisdiction over the location of the bonded area;

the date on which that refund was received;

the details of the taxable goods;

the amount of consumption tax for which that refund was received;

among matters relating to the fact prescribed in Article 39, paragraph (1) of the Act (hereinafter in this item referred to as "bad debt"), the following:

the name or title of the counterparty to the bad debt;

the date on which the bad debt occurred;

the content of the assets or services relating to the taxable transfer, etc. of assets to which the bad debt relates (where the taxable transfer, etc. of assets to which the bad debt relates is a taxable transfer, etc. of assets subject to the reduced rate, the content of the assets and a statement that it is a taxable transfer, etc. of assets subject to the reduced rate);

the amount that has become uncollectible due to the bad debt, classified by each different tax rate.

A person who carries on a business prescribed in Article 70-11 of the Order may omit the recording of the matters listed in item (i), (a) and item (ii), (a) of the preceding paragraph that relate to that business, notwithstanding items (i) and (ii) of that paragraph.

For transfers, etc. of assets relating to the cash sales of a business operator that carries on retail business or a similar business in which it conducts transfers, etc. of assets to unspecified and numerous persons, notwithstanding paragraph (1), item (i), the total amount of each of the daily cash sales divided into taxable transfers, etc. of assets (excluding those falling under taxable transfers, etc. of assets subject to the reduced rate) (for a business operator to which Article 37, paragraph (1) of the Act applies, taxable transfers, etc. of assets for each type of business listed in Article 57, paragraph (5), items (i) through (vi) of the Order), taxable transfers, etc. of assets subject to the reduced rate (for a business operator to which Article 37, paragraph (1) of the Act applies, taxable transfers, etc. of assets subject to the reduced rate for each type of business listed in Article 57, paragraph (5), items (i) through (vi) of the Order), and transfers, etc. of assets other than a taxable transfer, etc. of assets may be used in place of the matters listed in paragraph (1), item (i), (a) through (d).

A business operator to which Article 37, paragraph (1) of the Act applies may, in a taxable period to which that paragraph applies, omit the recording of the matters listed in paragraph (1), items (iii) and (iv) of this Article, notwithstanding items (iii) and (iv) of that paragraph.

The matters specified by Ministry of Finance Order prescribed in Article 71, paragraph (3) of the Order are the following:

the date of the import permission for the taxable goods (meaning the import permission under Article 67 (Permission for Export or Import) of the Customs Act; the same applies in the following paragraph) and the number of the permit;

the details of the taxable goods;

the amount that is the tax base for consumption tax on the taxable goods.

Where all or part of the matters listed in the items of the preceding paragraph are stated in the documents prescribed in Article 4-12, paragraph (2) (Matters to Be Stated in Books, etc.) of the Order for Enforcement of the Customs Act (Cabinet Order No. 150 of 1954) or in the documents certifying that the import permission has been granted, and a special filer (meaning a special filer prescribed in Article 71, paragraph (3) of the Order; the same applies in paragraphs (8) and (9)) organizes and retains those documents, notwithstanding the preceding paragraph, the recording of all or part of those matters in the books may be omitted.

The documents prescribed in the preceding paragraph are to include electronic or magnetic records in which the matters to be stated in those documents are recorded (meaning electronic or magnetic records prescribed in Article 2, item (iii) (Definitions) of the Act on Special Provisions concerning Preservation Methods for Books and Documents Related to National Tax Prepared by Means of Computers; hereinafter the same applies in this Article).

A special filer that retains the electronic or magnetic records prescribed in the preceding paragraph pursuant to paragraph (6) is to retain those electronic or magnetic records by taking any of the measures listed in the items of Article 4, paragraph (1) (Retention of Electronic or Magnetic Records of Transaction Information of Electronic Transactions) of the Regulation for Enforcement of the Act on Special Provisions concerning Preservation Methods for Books and Documents Related to National Tax Prepared by Means of Computers, and in accordance with requirements equivalent to the requirements prescribed in that paragraph.

Notwithstanding paragraph (6) and the preceding paragraph, a special filer that retains the electronic or magnetic records prescribed in paragraph (7) pursuant to those provisions may do so by retaining a document prepared by outputting those electronic or magnetic records (limited to one output in an orderly format and in a clear condition).