Regulation for Enforcement of the Consumption Tax Act

In this Ministerial Order, "Japan," "bonded area," "individual business operator," "business operator," "foreign business operator," "merged corporation," "splitting corporation," "association or foundation without legal personality," "qualified invoice issuer," "transfer, etc. of assets," "specified transfer, etc. of assets," "supply of telecommunications services," "transfer of specified low-value assets," "taxable transfer, etc. of assets," "taxable transfer, etc. of assets subject to the reduced rate," "taxable goods," "taxable purchase," "business year," "base period," "inventory," "adjustment-target fixed asset," "special return," or "accessory tax" mean, respectively, Japan, bonded area, individual business operator, business operator, foreign business operator, merged corporation, splitting corporation, association or foundation without legal personality, qualified invoice issuer, transfer, etc. of assets, specified transfer, etc. of assets, supply of telecommunications services, transfer of specified low-value assets, taxable transfer, etc. of assets, taxable transfer, etc. of assets subject to the reduced rate, taxable goods, taxable purchase, business year, base period, inventory, adjustment-target fixed asset, special return, or accessory tax prescribed in Article 2, paragraph (1), items (i) through (iv)-2, item (v)-2, item (vi), itemsitem (vii) through (viii)-3, item (ix), item, item (vii)-2, items (viii) through (viii)-3, items (viii)-6 through (ix)-2, item (xi), items (xii) through (xvi), item (xviii) or item (xix) of the Consumption Tax Act (Act No. 108 of 1988; hereinafter referred to as "the Act").

In this Ministerial Order, "deadline for filing the final return" means the deadline for filing the final return prescribed in Article 1, paragraph (2), item (v) of the Order for Enforcement of the Consumption Tax Act (hereinafter referred to as "the Order").

The age and other requirements specified by Ministry of Finance Order prescribed in Article 2-42-5, paragraph (2), item (i) of the Order for Enforcement of the Consumption Tax Act (Cabinet Order No. 360 of 1988; hereinafter referred to as "the Order") are that the person falls under any of the following items:

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 (including 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 hereinafter, except in Article 23-3, paragraph (3), item (ii), (b))) 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 offollowing the deadline for filing the final return for 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)).

The retention under the provisions of paragraph (1) in the period on or after the day on which five years have elapsed from (excluding retention of electronic or magnetic records under the provisions of that paragraph) in the period on or after the day on which two monthsfive years have elapsed from the day following the last day ofdeadline for filing the final return for 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), pursuant to the provisions of paragraph (1), retains the electronic or magnetic records pertaining to the documents prescribed in the items of that paragraph 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 , pursuant to those provisions, retains the electronic or magnetic records prescribed in paragraph (4) pursuant to those provisionspertaining to the documents prescribed in the items of paragraph (1) 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)that paragraph, for the period for which it is to be retained pursuant to the provisions of that paragraph.

An approved tax-free procedure business operator must, for each general-type tax-free shop for which it performs the work relating to tax-free sale procedures under entrustment pursuant to the provisions of Article 18-3, paragraph (1) of the Order, prepare and organize records of the tax-free sale procedures concerning the application of the provisions of Article 8, paragraph (1) of the Act for each person eligible for tax-free purchase and records concerning the application of the provisions of Article 18-3, paragraph (8) of the Order, and retain them for seven years from the day on which two months have elapsed from the day following the last day offollowing the deadline for filing the final return for the taxable period that includes the day on which those tax-free sale procedures were carried out (one month, where the residual assets of a corporation in liquidation have been determined), at the place for tax payment or at the location of the office, place of business or other similar place relating to the tax-free sale procedures.

An approved transmission business operator must, for the provision, etc. of purchase record information performed under entrustment pursuant to the provisions of Article 18-4, paragraph (1) of the Order, prepare and organize, for each person eligible for tax-free purchase, records relating to that provision, etc. of purchase record information, and retain them for seven years from the day on which two months have elapsed from the day following the last day offollowing the deadline for filing the final return for the taxable period that includes the day on which the business operator operating the tax-free shop received the customs confirmation information under the provisions of Article 8, paragraph (3), second sentence of the Act with respect to the tax-exempt goods transferred to that person eligible for tax-free purchase (where it does not receive customs confirmation information, the day on which it made the provision of purchase record information under the provisions of paragraph (2), first sentence of that Article) (one month, where the residual assets of a corporation in liquidation have been determined), at the place for tax payment or at the location of the office, place of business or other similar place relating to the provision, etc. of purchase record information.

Matters to Be Stated in the Written Notification to the Effect That a Person Is One That Should Be Designated as a SpecifiedType 1 Platform Operator, etc.

The matters specified by Ministry of Finance Order prescribed in Article 15-2, paragraph (3) of the Act (including where applied with terms replaced pursuant to Article 29, paragraph (2) of the Order) are the following:

the notifier's name or title (limited, for a foreign business operator, to that written in Japanese and English; the same applies hereinafter in this Article and the following Article), place for tax payment (if the place for tax payment differs from the address, etc., the place for tax payment and the address, etc. (limited, for a foreign business operator, to that written in Japanese and English); the same applies hereinafter in this item and in paragraph (1), item (i) of the following Article), and corporate number (for a person who does not have a corporate number, the name or title and place for tax payment);

the name of the digital platform that it provides (meaning the digital platform prescribed in Article 15-2, paragraph (1) of the Act; the same applies hereinafter in this Article and the following Article);

a merging corporation, etc. prescribed in Article 29, paragraph (1) of the Order that has come to be subject to the application of that paragraph: the date of the merger, company split or taking over by transfer, and the name or title of the specifiedtype 1 platform operator prescribed in Article 15-2, paragraph (1) of the Act that had it succeed to the business or transferred the business to it;

The matters specified by Ministry of Finance Order prescribed in Article 15-3, paragraph (3) of the Act (including where applied with terms replaced pursuant to Article 30, paragraph (2) of the Order) are the following:

the notifier's name or title, place for tax payment, and corporate number (for a person who does not have a corporate number, the name or title and place for tax payment);

the name of the digital platform that it provides;

the following matters in accordance with the categories of persons set out below:

a platform operator prescribed in Article 15-2, paragraph (1) of the Act for which the total amount prescribed in Article 15-3, paragraph (2) of the Act has come to exceed 5 billion yen: the first day and last day of its taxable period and that total amount;

a merging corporation, etc. prescribed in Article 30, paragraph (1) of the Order that has come to be subject to the application of that paragraph: the date of the merger, company split or taking over by transfer, and the name or title of the type 2 platform operator prescribed in Article 15-3, paragraph (1) of the Act that had it succeed to the business or transferred the business to it;

any other matters for reference.

The written notification prescribed in Article 15-3, paragraph (6) of the Act must state the following matters:

the notifier's name or title, place for tax payment, and corporate number (for a person who does not have a corporate number, the name or title and place for tax payment);

the details of the change;

any other matters for reference.

The matters specified by Ministry of Finance Order prescribed in Article 15-3, paragraph (7) of the Act are the following:

the applicant's name or title, place for tax payment, and corporate number (for a person who does not have a corporate number, the name or title and place for tax payment);

the name of the digital platform that it provides;

the first day and last day of each taxable period that falls under the case where the total amount prescribed in Article 15-3, paragraph (7) of the Act is 5 billion yen or less;

any other matters for reference.

The written notification prescribed in Article 15-3, paragraph (10) of the Act must state the following matters:

the notifier's name or title, place for tax payment, and corporate number (for a person who does not have a corporate number, the name or title and place for tax payment);

the date on which the business relating to that digital platform was discontinued;

the name of the digital platform referred to in the preceding item;

any other matters for reference.

The matters specified by Ministry of Finance Order prescribed in Article 15-3, paragraph (16) of the Act are the following:

the total amount of consideration prescribed in Article 15-3, paragraph (2) of the Act, classified by the transfers of assets set out in the items of paragraph (1) of that Article to which the provisions of that paragraph apply in its taxable period, and the details thereof;

the total amount of tax on taxable purchases, etc. prescribed in Article 30, paragraph (2) of the Act pertaining to the taxable purchases and the taking out of taxable goods from a bonded area prescribed in Article 15-3, paragraph (15) of the Act to which that paragraph applies in its taxable period, and the details thereof;

any other matters for reference.

The documents specified by Ministry of Finance Order prescribed in Article 30, paragraph (11) of the Act are the documents set out in each of the following items in accordance with the categories of persons set out in those items (including copies of those documents and electronic or magnetic records relating to those documents provided by the person (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; the same applies hereinafter in this Chapter), and limited to those that bear or record the person's name or title and address or residence or the location of the head office or principal office):

The case where proof has been provided as specified by Ministry of Finance Order prescribed in Article 31, paragraph (1) of the Act is the case where a business operator that has made a non-taxable transfer, etc. of assets prescribed in that paragraph that falls under an export transaction, etc. prescribed in that paragraph has provided proof, with respect to that non-taxable transfer, etc. of assets, by organizing the documents or (including electronic or magnetic records relating to those documents) or books specified in the items of Article 5, paragraph (1) in accordance with the categories of cases set out in those items, and retaining them at the place for tax payment or the location of the office, place of business, or similar place relating to the transaction (referred to as "office or similar place" in the following paragraph) for seven years from the day on which two months (one month where the residual assets of a corporation in liquidation have been determined; the same applies in the following paragraph and paragraph (3)) have elapsed from the day following the last day offollowing the deadline for filing the final return for the taxable period that includes the day on which the non-taxable transfer, etc. of assets was made.

The case where proof has been provided as specified by Ministry of Finance Order prescribed in Article 31, paragraph (2) of the Act is the case where a business operator that has exported the assets prescribed in that paragraph has provided proof, with respect to that export of assets, by organizing the documents specified in Article 5, paragraph (1), item (i) (or, where the assets were exported as a postal item prescribed in Article 76, paragraph (1) (Simplified Procedures for Export and Import of Postal Items) of the Customs Act, the documents specified in Article 5, paragraph (1), item (ii); including electronic or magnetic records relating to these documents), and retaining them at the place for tax payment or the location of the office or similar place relating to the transaction for seven years from the day on which two months have elapsed from the day following the last day offollowing the deadline for filing the final return for the taxable period that includes the day on which the assets were exported.

Retention under paragraph (1) and the preceding paragraphthe preceding two paragraphs (excluding retention of electronic or magnetic records under those provisions), for 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 offollowing the deadline for filing the final return for the taxable period prescribed in those provisions, may be done by a method determined by the Minister of Finance.

The documents prescribed in paragraphs (1) and (2) include electronic or magnetic records relating to those documents.

A business operator that , pursuant to paragraph (1) or (2), retains the electronic or magnetic records prescribed in the preceding paragraph pursuant to paragraph (1) or (2)relating to the documents prescribed in those provisions is to retain those electronic or magnetic records 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 paragraphs (1) and (2) and the preceding paragraph, a business operator that , pursuant to these provisions, retains the electronic or magnetic records prescribed in paragraph (4) pursuant to these provisions relating to the documents prescribed in paragraphs (1) and (2) 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 it is required to be retained under paragraph (1) or (2)these provisions, for the period for which it is required to be retained under these provisions.

A business operator subject to the application of Article 37, paragraph (1) of the Act must, where it has made a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act (excluding that pertaining to a transfer of specified low-value assets), make an additional entry in the books prescribed in Article 58-2, paragraph (1) of the Order of the type of business specified in Article 57, paragraph (5), items (i) through (vi) of the Order relating to that refund, etc. of consideration for sales.

A business operator seeking to have Article 39, paragraph (1) of the Act apply must organize documents evidencing that the facts prescribed in that paragraph have arisen with respect to the claim prescribed in that paragraph, and retain them at the place for tax payment or the location of the office, place of business, or similar place relating to the transaction for seven years from the day on which two months (one month where the residual assets of a corporation in liquidation have been determined) have elapsed from the day following the last day offollowing the deadline for filing the final return for the taxable period that includes the day on which it became unable to collect as prescribed in that paragraph.

The method specified by Ministry of Finance Order prescribed in Article 61, paragraph (1) of the Order 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 61, paragraph (1) of the Order and the preceding paragraph, a business operator that, pursuant to these provisions, retains the electronic or magnetic records prescribed in paragraph (1) of that Article may do so by 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 that paragraph, for the period for which it is to be retained pursuant to the provisions of that paragraph.

the filer's name or title (including the name of the representative; the same applies hereinafter through Article 22, in Article 23-2 and in Article 23-523-4, except in Article 23-3, paragraph (6)), place for tax payment, and individual number or corporate number (for a person who has neither an individual number nor a corporate number, the name or title and place for tax payment);

A person who submits the return prescribed in the preceding paragraph that states the shortfall set out in Article 45, paragraph (1), item (v) of the Act must attach to that return, in addition to the documents prescribed in the preceding paragraph, a document stating the following matters (for the matters set out in items (v) and (vi), limited to the case where that return is submitted by a foreign business operator under Article 15-3, paragraph (1), item (i) of the Act that is subject to the application of that paragraph, in the taxable period relating to that return, with respect to a transfer of assets set out in that item):

the matters set out in Article 27, paragraph (1), item (i) relating to taxable transfers, etc. of assets made in Japan during thethat taxable period relating to that return (excluding those that are exempt from consumption tax under Article 7, paragraph (1) of the Act, Article 8, paragraph (1) of the Act, or any other provision of laws or treaties (referred to as "export transactions, etc." in the following item) and those that fall under specified transfers, etc. of assets; the same applies hereinafter in this item) and other matters relating to taxable transfers, etc. of assets;

the total amount of consideration prescribed in Article 15-3, paragraph (2) of the Act, classified by the transfers of assets set out in the items of paragraph (1) of that Article to which the provisions of that paragraph apply that were made during that taxable period, and the details thereof;

the matters set out in Article 30, paragraph (8), item (iii) of the Act pertaining to the taking out of taxable goods from a bonded area made during that taxable period and other matters relating to those taxable goods;