Regulation for Enforcement of the Consumption Tax Act

The matters specified by Ministry of Finance Order prescribed in Article 47, paragraph (1) of the Order are the following:

the applicant's name or title (including the name of the representative; except in Article 15-7, the same applies hereinafter in this Chapter) and place for tax payment (for a person who has a corporate number, the title, place for tax payment, and corporate number);

the reasons why the method of calculating the ratio equivalent to the taxable sales ratio prescribed in Article 30, paragraph (3) of the Act that the applicant intends to use is reasonable;

the dates (date) of the first day and last day of the first taxable period for which the applicant seeks to have Article 30, paragraph (3) of the Act apply;

any other matters for reference.

A business operator that intends to submit the written notification prescribed in the proviso to Article 30, paragraph (3) of the Act must state the following matters in that written notification and submit it to the district director with jurisdiction over the place for tax payment:

the notifier's name or title and place for tax payment (for a person who has a corporate number, the title, place for tax payment, and corporate number);

the content of the method of calculating the ratio equivalent to the taxable sales ratio for which the approval was obtained;

the date on which the approval was obtained;

any other matters for reference.

The securities or certificates specified by Ministry of Finance Order prescribed in Article 48, paragraph (2), item (iii), (d) of the Order are the securities or certificates set out in Article 2, paragraph (1), item (xviii) (Definitions) of the Financial Instruments and Exchange Act (Act No. 25 of 1948) (including rights that are to be indicated on the securities or certificates set out in that item (limited to those for which the securities or certificates have not been issued), and, among the rights that are deemed to be securities under paragraph (2) of that Article and are set out in item (ii) of that paragraph, those relating to beneficial interests in trusts that trust the loan claims of the persons set out in the following items (limited to trusts in which the beneficiary at the time of the contract relating to the trust is the settlor)):

a bank;

a cooperative structured financial institution prescribed in Article 2, paragraph (1) (Definitions) of the Act on Preferred Equity Investment by Cooperative Structured Financial Institution (Act No. 44 of 1993), and a financial institution set out in the items of Article 1-9 (Scope of Financial Institutions) of the Order for Enforcement of the Financial Instruments and Exchange Act (Cabinet Order No. 321 of 1965);

a trust company.

The items specified by Ministry of Finance Order prescribed in Article 49, paragraph (1), item (i), (c)(1) of the Order are the articles and tokens, purchased by the business operator prescribed in (c)(1) of that item by a method of transaction equivalent to the secondhand goods business prescribed in Article 2, paragraph (2) (Definitions) of the Secondhand Goods Business Act (Act No. 108 of 1949), that are similar to the secondhand goods prescribed in paragraph (1) of that Article (limited to those acquired for use, appreciation, or other purposes by the person who transfers them to that business operator (excluding a qualified invoice issuer), and excluding those that fall under the specified metal scrap prescribed in Article 49, paragraph (1), item (i), (c)(4) of the Order).

The taxable purchases specified by Ministry of Finance Order prescribed in Article 49, paragraph (1), item (i), (d) of the Order are the following taxable purchases:

a taxable purchase relating to a taxable transfer, etc. of assets set out in the items of Article 26-6 that the business operator has received from another person;

a taxable purchase relating to the portion recognized as ordinarily necessary for travel, of money or goods that a business operator pays to its employees, etc. or retirees, etc. to cover the expenditures necessary for travel, where an officer or employee prescribed in Article 2, item (xv) (Definitions) of the Corporation Tax Act (Act No. 34 of 1965) (hereinafter in this item and the following item referred to as "employee, etc.") travels to perform duties away from the place of work, or travels to relocate in connection with a transfer, or where a person who has taken up or left employment, or the bereaved family of a person who left employment by reason of death (hereinafter in this item referred to as "retiree, etc."), travels to relocate in connection therewith;

a taxable purchase relating to the portion recognized as ordinarily necessary for a commuter, of the commuting allowance prescribed in Article 9, paragraph (1), item (v) (Nontaxable Income) of the Income Tax Act (Act No. 33 of 1965) that a business operator pays to its employees, etc. who commute (hereinafter in this item referred to as "commuters").

The method specified by Ministry of Finance Order prescribed in Article 50, paragraphs (1) and (2) of the Order is a method of retaining the electronic or magnetic records prescribed in those provisions by taking any of the measures set out 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 50, paragraphs (1) and (2) of the Order and the preceding paragraph, a business operator that retains the electronic or magnetic records prescribed in Article 50, paragraphs (1) and (2) of the Order pursuant to these 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). In this case, the business operator must retain the document, in an organized manner, at the place at which, and for the period for which, it is required to be retained under these provisions.

The cases specified by Ministry of Finance Order prescribed in the proviso to Article 50, paragraph (1) of the Order are, for the books prescribed in Article 30, paragraph (7) of the Act (hereinafter in this Article referred to as "books"), the case where the invoices, etc. prescribed in that paragraph (hereinafter in this Article referred to as "invoices, etc.") relating to the matters stated in those books are retained pursuant to the main clause of Article 50, paragraph (1) of the Order, and, for invoices, etc., the case where the books relating to the matters stated or recorded in those invoices, etc. are retained pursuant to the main clause of that paragraph.