Regulation for Enforcement of the Consumption Tax Act

In the case where an individual business operator to whom Article 18, paragraph (1) of the Act applies ceases to be subject to its application, the timing at which a transfer, etc. of assets relating to money received in advance, a taxable purchase relating to money paid in advance (excluding one that falls under a specified taxable purchase (meaning a specified taxable purchase prescribed in Article 5, paragraph (1) of the Act; the same applies hereinafter in this paragraph); the same applies hereinafter in this Article), or a specified taxable purchase relating to money paid in advance was made is as provided in the following items:

with respect to the portion relating to the balance remaining after deducting, from the total amount of money received in advance for transfers, etc. of assets as of the day preceding the first day of the taxable period for which Article 18, paragraph (1) of the Act came to apply, the total amount of money received in advance for transfers, etc. of assets as of the day preceding the first day of the taxable period for which that paragraph ceased to apply, the individual business operator is deemed to have made a transfer, etc. of assets on the day preceding the first day of the taxable period for which the application ceased;

with respect to the portion relating to the balance remaining after deducting, from the total amount of money paid in advance for taxable purchases as of the day preceding the first day of the taxable period for which Article 18, paragraph (1) of the Act came to apply, the total amount of money paid in advance for taxable purchases as of the day preceding the first day of the taxable period for which that paragraph ceased to apply, the individual business operator is deemed to have made a taxable purchase on the day preceding the first day of the taxable period for which the application ceased;

with respect to the portion relating to the balance remaining after deducting, from the total amount of money paid in advance for specified taxable purchases as of the day preceding the first day of the taxable period for which Article 18, paragraph (1) of the Act came to apply, the total amount of money paid in advance for specified taxable purchases as of the day preceding the first day of the taxable period for which that paragraph ceased to apply, the individual business operator is deemed to have made a specified taxable purchase on the day preceding the first day of the taxable period for which the application ceased.

If there is an amount that cannot be fully deducted after the deduction under Article 40, paragraph (1), item (i) of the Order or item (i) of the preceding paragraph, the total of those amounts not fully deducted is to be deducted from the total of the amounts of consideration for transfers, etc. of assets in the taxable period immediately preceding the taxable period for which Article 18, paragraph (1) of the Act ceased to apply.

The deductions under Article 40, paragraph (1), item (i) of the Order, paragraph (1), item (i) of this Article, and the preceding paragraph are to be made by applying those provisions separately to those relating to taxable transfers, etc. of assets (excluding those that fall under taxable transfers, etc. of assets subject to the reduced rate), those relating to taxable transfers, etc. of assets subject to the reduced rate, and those relating to transfers, etc. of assets other than a taxable transfer, etc. of assets.

If there is an amount that cannot be fully deducted after the deduction under paragraph (2), and that amount relates to a taxable transfer, etc. of assets, that amount is deemed to be the amount of a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the Act that was made in the immediately preceding taxable period prescribed in paragraph (2).

If there is an amount that cannot be fully deducted after the deduction under Article 40, paragraph (1), item (ii) of the Order or paragraph (1), item (ii) of this Article, or under Article 40, paragraph (1), item (iii) of the Order or paragraph (1), item (iii) of this Article, the total of the amounts of tax on taxable purchases, etc. (meaning the amount of tax on taxable purchases, etc. prescribed in Article 30, paragraph (2) of the Act; the same applies hereinafter in this paragraph) relating to those amounts not fully deducted is to be deducted from the total of the amounts of tax on taxable purchases, etc. that form the basis for calculating the consumption tax on purchases (meaning the consumption tax on purchases prescribed in Article 32, paragraph (1), item (i) of the Act) in the taxable period immediately preceding the taxable period for which Article 18, paragraph (1) of the Act ceased to apply.

If there is an amount that cannot be fully deducted after the deduction under the preceding paragraph, that amount is deemed to be an amount of consumption tax relating to a taxable transfer, etc. of assets and is to be added to the consumption tax on the tax base amount, classified by each different tax rate, set out in Article 45, paragraph (1), item (ii) of the Act for the immediately preceding taxable period prescribed in the preceding paragraph.

If there is an amount that cannot be fully deducted after the deduction under Article 40, paragraph (1), item (iii) of the Order or paragraph (1), item (iii) of this Article, the total of those amounts not fully deducted is to be deducted from the total of the amounts of the tax base for specified taxable purchases prescribed in Article 45, paragraph (1), item (i) of the Act in the taxable period immediately preceding the taxable period for which Article 18, paragraph (1) of the Act ceased to apply.

If there is an amount that cannot be fully deducted after the deduction under the preceding paragraph, that amount is deemed to be the amount of a refund, etc. of consideration for specified taxable purchases prescribed in Article 38-2, paragraph (1) of the Act that was made in the immediately preceding taxable period prescribed in the preceding paragraph.

The written notification prescribed in Article 19, paragraph (1), item (iii) or (iii)-2 of the Act must state the following matters (excluding the matter set out in item (iii) of this paragraph, if the written notification shortens the period prescribed in Article 19, paragraph (1), item (i) of the Act to periods of every three months or periods of every one month):

the notifier's name and place for tax payment;

the date of the first day of the following period prescribed in Article 19, paragraph (2) of the Act;

the date on which the written notification under Article 19, paragraph (1), item (iii) or (iii)-2 of the Act that currently applies was submitted and the date on which that notification took effect;

any other matters for reference.

The written notification prescribed in Article 19, paragraph (1), item (iv) or (iv)-2 of the Act must state the following matters (excluding the matter set out in item (v) of this paragraph, if the written notification shortens the period prescribed in Article 19, paragraph (1), item (ii) of the Act to periods of every three months or periods of every one month):

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

the first day and last day of the business year;

each period prescribed in Article 19, paragraph (1), item (iv) or (iv)-2 of the Act;

the date of the first day of the following period prescribed in Article 19, paragraph (2) of the Act;

the date on which the written notification under Article 19, paragraph (1), item (iv) or (iv)-2 of the Act that currently applies was submitted and the date on which that notification took effect;

any other matters for reference.

The written notification prescribed in Article 19, paragraph (3) of the Act to the effect that the person intends to cease to be subject to the application of paragraph (1), item (iii) or (iii)-2 of that Article must state the following matters:

the notifier's name and place for tax payment;

the date on which the written notification under Article 19, paragraph (1), item (iii) or (iii)-2 of the Act that currently applies was submitted and the date on which that notification took effect;

the date following the last day of the taxable period prescribed in Article 19, paragraph (4) of the Act;

any other matters for reference.

The written notification prescribed in Article 19, paragraph (3) of the Act to the effect that the person intends to cease to be subject to the application of paragraph (1), item (iv) or (iv)-2 of that Article must state the following matters:

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

each period prescribed in Article 19, paragraph (1), item (iv) or (iv)-2 of the Act;

the date on which the written notification under Article 19, paragraph (1), item (iv) or (iv)-2 of the Act that currently applies was submitted and the date on which that notification took effect;

the date following the last day of the taxable period prescribed in Article 19, paragraph (4) of the Act;

any other matters for reference.

The written notification prescribed in Article 19, paragraph (3) of the Act to the effect that the business has been discontinued must state the following matters:

the notifier's name or title, 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);

the date on which the business was discontinued;

any other matters for reference.

The document relating to the notification prescribed in Article 25 of the Act must state the following matters:

the notifier's name, location of the head office or principal office, and corporate number (for a person who does not have a corporate number, the name and location of the head office or principal office);

the place for tax payment before the change and the place for tax payment after the change;

the date on which the change took place;

any other matters for reference.