Regulation for Enforcement of the Consumption Tax Act

Those for which proof has been made as specified by Ministry of Finance Order prescribed in Article 7, paragraph (2) of the Act are those for which a business operator that has made a taxable transfer, etc. of assets prescribed in paragraph (1) of that Article that falls under a transfer, etc. of assets listed in the items of that paragraph has made proof, with respect to that taxable transfer, etc. of assets, by organizing the documents or books prescribed in each of the following items in accordance with the category of cases listed in that item, and retaining them for seven years from the day on which two months have elapsed from the day following the last day of the taxable period that includes the day on which the taxable transfer, etc. of assets was made (one month, where the residual assets of a corporation in liquidation (including an association or foundation without legal personality; the same applies hereinafter) have been determined; the same applies in paragraph (3)), at the place for tax payment or at the location of the office, place of business or other similar place related to the transaction (referred to as "office or similar place" in item (i), (a)).

In the case of a transfer or lending of assets made as an export listed in Article 7, paragraph (1), item (i) of the Act (excluding the lending of vessels and aircraft) (excluding the cases listed in the following item and item (iii)): a document, issued by the director-general of the customs house for the export of the assets, certifying that an export permission (meaning the export permission prescribed in Article 67 (Permission for Export or Import) of the Customs Act (Act No. 61 of 1954)) or loading approval (meaning the approval, under Article 23, paragraph (2) (Loading of Ship's Stores or Aircraft Stores, etc.) of that Act, for loading the assets onto a vessel or aircraft prescribed in that paragraph (excluding a Japanese vessel or aircraft)) has been granted, or a document by which that director-general of the customs house has certified the fact of the export of the assets, being a document stating the following matters (in a case where the consideration for the transfer or lending of the assets is received in cash or by a method by which it is not clear that the counterparty paid it (hereinafter in this paragraph referred to as a "case of receipt in cash, etc."), that document and the document designated by the Commissioner of the National Tax Agency as equivalent to the document listed in Article 30, paragraph (9), item (v) of the Act relating to the import of the assets in the country of destination of the assets (hereinafter in this paragraph referred to as the "designated document")):

the name of the business operator that exported the assets and its address or residence, or the location of its office or similar place (hereinafter in this paragraph referred to as "address, etc.");

the date of the export of the assets;

the product name of the assets and the quantity and value for each product name;

the destination of the assets;

In the case of a transfer or lending of assets made as an export listed in Article 7, paragraph (1), item (i) of the Act where the assets have been exported as postal items (limited to postal items prescribed in Article 76, paragraph (1) (Simplified Procedures for Export and Import of Postal Items) of the Customs Act; the same applies hereinafter in this item) (excluding the case listed in the following item): the documents prescribed in the following, according to the following categories of postal items (in a case of receipt in cash, etc. of the consideration for the transfer or lending of the assets, those documents and the designated document relating to the import of the assets in the country of destination of the assets):

a parcel post item or EMS postal item prescribed in Article 1 of the Universal Postal Convention (referred to as a "parcel post item, etc." in (a)): a document certifying the acceptance of the parcel post item, etc. issued by Japan Post Co., Ltd., and a copy of the document affixed or attached to the parcel post item, etc. (limited to one stating the matters listed in (a) and (c) of the preceding item, the name and address, etc. of the addressee of the parcel post item, etc., and the date on which Japan Post Co., Ltd. accepted the parcel post item, etc.);

an ordinary postal item prescribed in Article 1 of the Universal Postal Convention: a document certifying the acceptance of the ordinary postal item issued by Japan Post Co., Ltd., to which additional entries have been made regarding the matters listed in (c) of the preceding item;

In the case of a transfer of assets made as an export prescribed in Article 7, paragraph (1), item (i) of the Act where a contract of carriage for the export of the assets is concluded between the counterparty to the transfer of the assets and an international type II consigned freight forwarder (meaning a person who, having obtained permission under Article 20 (Permission) or Article 45, paragraph (1) (Permission) of the Consigned Freight Forwarding Business Act (Act No. 82 of 1989), operates the type II consigned freight forwarding business prescribed in Article 2, paragraph (8) (Definitions) of that Act relating to the international freight transport prescribed in Article 6, paragraph (1), item (v) (Refusal of Registration) of that Act; the same applies hereinafter in this item) (limited to a case where the transfer of the assets is made at a sales outlet and, at the time of the transfer, the assets are delivered on the spot to the international type II consigned freight forwarder (including its agent)): a contract or other document relating to the contract of carriage that states the following matters (in a case of receipt in cash, etc. of the consideration for the transfer of the assets, that document and the designated document relating to the import of the assets in the country of destination of the assets):

the name of the counterparty;

the date on which the contract of carriage was concluded;

the product name of the assets and the quantity and value for each product name;

the destination of the assets;

the name and address, etc. of the international type II consigned freight forwarder;

In the case of transport or communications listed in Article 7, paragraph (1), item (iii) of the Act, or postal service or correspondence delivery listed in Article 17, paragraph (2), item (v) of the Order: a book or document in which the business operator that made that provision of services has stated the following matters:

the date of the provision of the services (where the book or document is prepared collectively for the provision of services made within a fixed period within the scope of a taxable period, that fixed period);

the content of the services provided;

the amount of consideration for that provision of services;

the name and address, etc. of the counterparty to that provision of services;

In the case of a transfer, etc. of assets, among those listed in the items of Article 7, paragraph (1) of the Act, other than the transfer, etc. of assets prescribed in the preceding items: a contract or other document with the counterparty to whom the transfer, etc. of assets was made, stating the following matters:

the name of the business operator that made the transfer, etc. of assets and that business operator's address, etc. relating to the transaction (including, where the transfer, etc. of assets is the provision of services listed in Article 6, paragraph (2), item (v) of the Order, the place specified in that item);

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

the content of the assets or services relating to the transfer, etc. of assets;

the amount of consideration for the transfer, etc. of assets;

the name of the counterparty to the transfer, etc. of assets and that counterparty's address, etc. relating to the transaction.

Where a business operator has made the provision of services of transport of passengers or communications listed in Article 7, paragraph (1), item (iii) of the Act, or of postal service or correspondence delivery listed in Article 17, paragraph (2), item (v) of the Order, and it is difficult to state the matters listed in item (iv), (d) of the preceding paragraph, the statement of the matters listed in (d) of that item may be omitted, notwithstanding that item.

The retention under the provisions of paragraph (1) in 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 that paragraph may be made by a method specified by the Minister of Finance.

The documents prescribed in the items of paragraph (1) are to include electronic or magnetic records pertaining to those documents (meaning the 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 (Act No. 25 of 1998); the same applies in the following paragraph and paragraph (6)).

A business operator that retains the electronic or magnetic records prescribed in the preceding paragraph pursuant to the provisions of paragraph (1) 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 (Ministry of Finance Order No. 43 of 1998), and in accordance with requirements equivalent to the requirements prescribed in that paragraph.

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

The articles specified by Ministry of Finance Order prescribed in Article 8, paragraph (1) of the Act are gold and platinum bullion and gold and platinum coins.

The documents specified by Ministry of Finance Order prescribed in Article 18, paragraph (1), item (i) of the Order are any of the following documents by which it can be confirmed that the person has had an address or residence continuously for two years or more in a region outside Japan up to the day on which the person last entered Japan (limited, for the documents listed in item (ii) and item (iii), to those prepared on or after the day six months before that day, counting from that day):

an Individual Number Card prescribed in Article 2, paragraph (7) (Definitions) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No. 27 of 2013) (limited to one on which the scheduled date of moving out prescribed in item (iii) of that paragraph is stated);

a certificate of residence issued by a consular officer (including the head of an embassy or legation that performs the duties of a consular officer, or a person who acts on behalf of that head in those affairs);

a copy of the annex to the family register.

The information relating to a passport, etc. prescribed in Article 18, paragraph (2), item (i) of the Order is, among the matters stated in the passport, etc. (meaning the passport, etc. prescribed in that item; the same applies in item (ii)), the following matters:

name, nationality, date of birth, status of residence, and date of landing;

the type of the passport, etc. and the passport number.

The information stated in the document prescribed in Article 18, paragraph (2), item (ii) of the Order is, among the matters stated in that document, the matters relating to the name of the document and to the date, stated in the document, on which the person came to have an address or residence in a region outside Japan.

The matters specified by Ministry of Finance Order prescribed in Article 18, paragraph (3) of the Order are the following matters:

that the confirmation by the director-general of the customs house under the provisions of Article 8, paragraph (1) of the Act is received by presenting one's passport, or providing information relating to that passport, to the director-general of the customs house having jurisdiction over the port of departure when leaving Japan, within 90 days from the day on which one purchased the tax-exempt goods (meaning the tax-exempt goods prescribed in that paragraph; the same applies hereinafter through Article 10), and that a person eligible for tax-free purchase (meaning the person eligible for tax-free purchase prescribed in that paragraph; the same applies in Article 8, paragraph (5) and Article 9, paragraph (7)) must be prepared to present those tax-exempt goods at the request of that director-general of the customs house;

that tax-exempt goods that have received the confirmation by the director-general of the customs house under the provisions of Article 8, paragraph (1) of the Act must be exported without delay, and that, if they are not exported, an amount equivalent to the amount of consumption tax exempted under the provisions of that paragraph for the transfer of those tax-exempt goods (including the amount equivalent to the amount of local consumption tax to be imposed with that amount of consumption tax as the tax base) may be collected, and a penalty may be imposed pursuant to the provisions of Article 65 of the Act (limited to the part pertaining to item (i)).