Consumption Tax Act

This Act is to prescribe, with regard to consumption tax, the subject of taxation, taxpayers, the method of calculating the amount of tax, and the procedures for filing returns, payment and refund, as well as the matters necessary to ensure the proper performance of the tax liability.

The revenue from consumption tax is to be used, in addition to as provided for in the Local Allocation Tax Act (Act No. 211 of 1950), each fiscal year to cover the expenses required for social security benefits for pensions, medical care and long-term care that have been established as systems, and for measures to address the declining birthrate.

In this Act, the meanings of the terms set forth in the following items are as prescribed respectively in those items:

Japan: the place where this Act is enforced;

bonded area: a bonded area prescribed in Article 29 (Types of Bonded Areas) of the Customs Act (Act No. 61 of 1954);

individual business operator: an individual who carries on a business;

business operator: an individual business operator and a corporation;

foreign business operator: an individual business operator who is a non-resident prescribed in Article 2, paragraph (1), item (v) (Definitions) of the Income Tax Act (Act No. 33 of 1965), and a foreign corporation prescribed in Article 2, item (iv) (Definitions) of the Corporation Tax Act (Act No. 34 of 1965);

merging corporation: a corporation that continues to exist after a merger, or a corporation established by a merger;

merged corporation: a corporation that has ceased to exist through a merger;

splitting corporation: a corporation that has effected a corporate split;

successor corporation in a company split: a corporation that has succeeded to the business of a splitting corporation through a corporate split;

association or foundation without legal personality: an association or foundation that is not a corporation and that provides for a representative or administrator;

qualified invoice issuer: a business operator that has received registration under Article 57-2, paragraph (1);

transfer, etc. of assets: the transfer and lending of assets and the provision of services conducted for consideration as a business (including the transfer of assets in lieu of performance of an obligation and other acts specified by Cabinet Order as being similar to the transfer or lending of assets or the provision of services conducted for consideration);

specified transfer, etc. of assets: provision of telecommunications services for businesses and provision of specified services;

supply of telecommunications services: among transfers, etc. of assets, the provision of copyrighted works conducted via a telecommunications line (meaning works prescribed in Article 2, paragraph (1), item (i) (Definitions) of the Copyright Act (Act No. 48 of 1970); including transactions pertaining to permission to use those works) and any other provision of services conducted via a telecommunications line (excluding the provision of services that mediate the communications of others by means of telephone, telegraph or other communications facilities), other than the provision of services conducted incidentally to another transfer, etc. of assets, such as notification of the result of another transfer, etc. of assets;

provision of telecommunications services for businesses: among the supply of telecommunications services conducted by a foreign business operator, that for which the persons receiving the provision of services are ordinarily limited to business operators, judging from the nature of the services pertaining to that supply of telecommunications services or the terms and conditions of the transaction pertaining to that provision of services;

provision of specified services: among transfers, etc. of assets, the provision of services specified by Cabinet Order, such as theatrical services, that is conducted by a foreign business operator (excluding that which falls under the supply of telecommunications services);

taxable transfer, etc. of assets: transfers, etc. of assets other than those on which consumption tax is not to be imposed under Article 6, paragraph (1);

taxable transfer, etc. of assets subject to the reduced rate: among taxable transfers, etc. of assets, those set forth in Appended Table 1;

foreign goods: foreign goods prescribed in Article 2, paragraph (1), item (iii) (Definitions) of the Customs Act (including goods deemed to have been permitted for export under Article 73-2 (Goods Deemed to Have Been Permitted for Export) of that Act);

taxable goods: among foreign goods taken out of a bonded area (excluding correspondence prescribed in Article 3 (Objects of Taxation) of the Customs Act; the same applies in Article 4), those other than goods on which consumption tax is not to be imposed under Article 6, paragraph (2);

taxable goods subject to the reduced rate: among taxable goods, those set forth in Appended Table 1-2;

taxable purchase: for a business operator, to acquire or borrow assets from another person, or to receive the provision of services from another person (excluding the provision of services for which salary, etc. prescribed in Article 28, paragraph (1) (Salary Income) of the Income Tax Act is the consideration), as a business (limited to those that would fall under a taxable transfer, etc. of assets if that other person were to transfer or lend those assets, or provide those services, as a business, other than those that fall under a transfer, etc. of assets set forth in the items of Article 7, paragraph (1) and those for which consumption tax is exempted under Article 8, paragraph (1) or any other provision of an Act or treaty);

business year: a business year prescribed in Articles 13 and 14 (Business Year) of the Corporation Tax Act (for the national government, local governments and other corporations to which the provisions of those Articles do not apply, a fixed period specified by Cabinet Order);

base period: for an individual business operator, the year before the previous year, and for a corporation, the second business year preceding its business year (for a corporation for which that second preceding business year is less than one year, the period combining each business year that began during the period from the day before the day two years before the first day of its business year until the day on which one year has elapsed from that day).

inventory: goods, products, semi-finished products, work in process, raw materials and other assets specified by Cabinet Order;

adjustment-target fixed asset: buildings, structures, machinery and equipment, ships, aircraft, vehicles and transport equipment, tools, fixtures and fittings, mining rights and other assets specified by Cabinet Order as those whose value is not small;

final return, etc.: a return under Article 45, paragraph (1) (including a return filed after the due date prescribed in Article 18, paragraph (2) (Filing of a Return after the Due Date) of the Act on General Rules for National Taxes (Act No. 66 of 1962) that pertains to that return) and a return under Article 46, paragraph (1);

special return: a return under Article 47, paragraph (1) (limited to the case of paragraph (3) of that Article, and including a return filed after the due date prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes that pertains to that return);

accessory tax: an accessory tax as prescribed in Article 2, item (iv) (Definitions) of the Act on General Rules for National Taxes;

interim payment: the amount of consumption tax to be paid pursuant to Article 48 (where, with respect to that amount, an amended return prescribed in Article 19, paragraph (3) (Amended Return) of the Act on General Rules for National Taxes has been submitted, or a reassessment has been made under Article 24 (Reassessment) or Article 26 (Reassessment of Previous Reassessment) of that Act, the amount of consumption tax after that return or reassessment).

In this Act, "lending of assets" includes the creation of rights pertaining to assets and all other acts of causing another person to use assets (excluding those acts that fall under the supply of telecommunications services).

In this Act, "borrowing of assets" includes the creation of rights pertaining to assets and all other acts of using the assets of another person (excluding those acts that fall under the supply of telecommunications services received from another person).

In this Act, "inheritance" includes a universal bequest, "heir" includes a universal legatee, and "decedent" includes a person who has made a universal bequest.

An association or foundation without legal personality is deemed to be a corporation, and the provisions of this Act (excluding Articles 12-2 and 46-2 and Appended Table 3) apply to it.

Consumption tax is imposed under this Act on transfers, etc. of assets conducted by business operators in Japan (excluding those that fall under specified transfers, etc. of assets; the same applies in paragraph (3)) and on specified purchases (meaning specified transfers, etc. of assets received from another person as a business; the same applies hereafter in this Chapter).

Consumption tax is imposed under this Act on foreign goods taken out of a bonded area.

Whether a transfer, etc. of assets was conducted in Japan is to be determined by whether the place specified in the relevant one of the following items, according to the category of cases set forth in those items, is in Japan; provided, however, that in the case set forth in item (iii), if there is no place specified in that item, that transfer, etc. of assets is to be regarded as having been conducted outside Japan.

in the case of the transfer or lending of assets: the place where the assets were located at the time of that transfer or lending (where the assets are ships, aircraft, mining rights, patent rights, copyrights, government bond certificates, share certificates or other assets specified by Cabinet Order as those whose location is unclear, the place specified by Cabinet Order);

in the case of the provision of services (excluding the case set forth in the following item): the place where the services were provided (where the services are international transport, international communications or other provision of services specified by Cabinet Order as those for which the place where the services were provided is unclear, the place specified by Cabinet Order);

in the case of the supply of telecommunications services: the address or residence (meaning the place where the person has continuously resided for one year or more up to the present) of the person receiving that supply of telecommunications services, or the location of that person's head office or principal office.

Whether a specified purchase was conducted in Japan is to be determined by whether the place specified in item (ii) or (iii) of the preceding paragraph, with respect to the provision of services received from another person as that specified purchase, is in Japan, from the standpoint of the business operator that made that specified purchase; provided, however, that, of the specified purchases that a foreign business operator makes at a permanent establishment (meaning a permanent establishment prescribed in Article 2, paragraph (1), item (viii)-4 (Definitions) of the Income Tax Act or Article 2, item (xii)-19 (Definitions) of the Corporation Tax Act) (limited to those that fall under the provision of telecommunications services for businesses received from another person; the same applies in this paragraph), those required for transfers, etc. of assets conducted in Japan are deemed to have been conducted in Japan, and, of the specified purchases that a business operator (excluding a foreign business operator) makes at a foreign office or similar establishment (meaning a foreign office or similar establishment prescribed in Article 95, paragraph (4), item (i) (Foreign Tax Credit) of the Income Tax Act or Article 69, paragraph (4), item (i) (Foreign Tax Credit) of the Corporation Tax Act), those required only for transfers, etc. of assets conducted outside Japan are deemed to have been conducted outside Japan.

The following acts are deemed to be transfers of assets conducted for consideration as a business:

the consumption or use, in the case where an individual business operator has consumed or used for household purposes inventory or assets other than inventory that had been used for business;

the gift, in the case where a corporation has given assets to its officer (meaning an officer prescribed in Article 2, item (xv) of the Corporation Tax Act).

Where foreign goods have been consumed or used in a bonded area, the person who consumed or used them is deemed to take those foreign goods out of that bonded area at the time of that consumption or use; provided, however, that this does not apply where those foreign goods have been consumed or used as raw materials or materials for taxable goods, or in any other case specified by Cabinet Order.

In addition to what is provided for in paragraph (3) through the preceding paragraph, necessary matters concerning the details of the subject of taxation are specified by Cabinet Order.

A business operator has an obligation to pay consumption tax under this Act with respect to taxable transfers, etc. of assets conducted in Japan (excluding those that fall under specified transfers, etc. of assets; the same applies hereafter, except in Article 30, paragraph (2) and Article 32) and specified taxable purchases (meaning, of taxable purchases, those that fall under specified purchases; the same applies hereafter).

A person who takes foreign goods out of a bonded area has an obligation to pay consumption tax under this Act with respect to the taxable goods.

Consumption tax is not imposed on those transfers, etc. of assets conducted in Japan that are set forth in Appended Table 2.

Consumption tax is not imposed on those foreign goods taken out of a bonded area that are set forth in Appended Table 2-2.

Consumption tax is exempted for those, among taxable transfers, etc. of assets conducted in Japan by a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)), that fall under any of the following:

the transfer or lending of assets conducted as an export from Japan;

the transfer or lending of foreign goods (excluding the transfer or lending of assets that falls under the preceding item, and the transfer of foreign goods that has come to fall under the cases listed in Article 8, paragraph (1), item (iii) (Collection of National Consumption Tax in the Case of Public Sale or Sale, etc.) of the Act on Collection, etc. of National Consumption Tax Imposed on Imported Goods (Act No. 37 of 1955));

the transport of passengers or cargo, or communications, conducted across Japan and areas outside Japan;

the transfer, lending or repair, as specified by Cabinet Order, of ships or aircraft used exclusively for the transport prescribed in the preceding item;

that which is specified by Cabinet Order as being similar to the transfers, etc. of assets set forth in the preceding items.

The provisions of the preceding paragraph do not apply unless it has been proved, as provided by Ministry of Finance Order, that the taxable transfer, etc. of assets falls under a transfer, etc. of assets set forth in the items of that paragraph.

the business operator currently has no arrears of national taxes (limited to those for which collection of the amount of taxes in arrears is extremely difficult);

A business operator that seeks to be subject to the application of the preceding paragraph must obtain, in advance, the approval of the district director having jurisdiction over its place for tax payment, as provided by Cabinet Order.

With respect to a business operator whose taxable sales in the base period for its taxable period are 10 million yen or less (excluding a qualified invoice issuer), notwithstanding Article 5, paragraph (1), the obligation to pay consumption tax is exempted for the taxable transfers, etc. of assets and specified taxable purchases conducted in Japan during that taxable period; provided, however, that this does not apply where otherwise provided for in this Act.

The taxable sales in the base period prescribed in the preceding paragraph means the amount specified in the following items for the category of business operators set forth in those items:

an individual business operator and a corporation whose base period is one year: the balance remaining after deducting from the total amount of consideration for taxable transfers, etc. of assets conducted in Japan during the base period (meaning the amount of consideration prescribed in Article 28, paragraph (1); the same applies hereafter in this paragraph, paragraph (2) of the following Article, Article 11, paragraph (4) and Article 12-3, paragraph (1)) the total of the amounts obtained by deducting the amount set forth in (b) from the amount set forth in (a) (hereinafter referred to in this paragraph and Article 11, paragraph (4) as the "total tax-exclusive refunds, etc. of consideration for sales");

the amount of the refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) that was made during the base period;

the amount calculated by multiplying the amount of consumption tax pertaining to the amount of the refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) that was made during the base period by 100/78;

a corporation whose base period is not one year: the amount calculated by dividing the balance remaining after deducting the total tax-exclusive refunds, etc. of consideration for sales in that base period from the total amount of consideration for taxable transfers, etc. of assets conducted in Japan during the base period by the total number of months of the business years included in that base period of that corporation, and multiplying the result by 12.

The number of months in item (ii) of the preceding paragraph is to be calculated according to the calendar, and if a fraction of less than one month arises, it is to be counted as one month.

Where a business operator that would be exempted from the obligation to pay consumption tax under the main clause of paragraph (1) submits to the district director having jurisdiction over its place for tax payment, for a taxable period in which its taxable sales in the base period (meaning the taxable sales in the base period prescribed in that paragraph; the same applies hereafter in this Chapter, except in Article 11, paragraph (4) and Article 12, paragraph (3)) are 10 million yen or less, a written notification stating that it will not be subject to the application of the main clause of paragraph (1), the main clause of that paragraph does not apply to taxable transfers, etc. of assets and specified taxable purchases conducted in Japan by the business operator that made that submission during each taxable period from the taxable period following the taxable period that includes the day of that submission (or, where the taxable period that includes the day of that submission is the taxable period that includes the day on which the business was commenced or any other taxable period specified by Cabinet Order, from that taxable period) onward (excluding a taxable period in which its taxable sales in the base period exceed 10 million yen).

A business operator that has submitted a written notification under the provisions of the preceding paragraph must, when it intends to cease to be subject to the application of that paragraph or when it has discontinued its business, submit to the district director having jurisdiction over its place for tax payment a written notification to that effect.

In the case referred to in the preceding paragraph, a business operator that has submitted a written notification under the provisions of paragraph (4) may, except where it has discontinued its business, submit a written notification stating that it intends to cease to be subject to the application of that paragraph only on or after the first day of the taxable period that includes the day on which two years have elapsed from the first day of the following taxable period prescribed in that paragraph.

In the case referred to in paragraph (5), where a business operator that has submitted a written notification under the provisions of paragraph (4) has, during any taxable period beginning during the period from the first day of the following taxable period prescribed in that paragraph to the day on which two years have elapsed from that day (excluding a taxable period to which Article 37, paragraph (1) applies), made a taxable purchase of an adjustment-target fixed asset in Japan or taken out of a bonded area taxable goods that fall under adjustment-target fixed assets (excluding those for which consumption tax is exempted under the provisions of another Act or a treaty; the same applies in paragraph (9), Article 12-2, paragraph (4) and Article 12-4) (hereinafter in this paragraph, Article 12-2, paragraph (2) and Article 12-3, paragraph (3) referred to as a "purchase, etc. of an adjustment-target fixed asset") (including where it made that purchase, etc. of an adjustment-target fixed asset before the submission of that written notification in the taxable period specified by Cabinet Order prescribed in paragraph (4)), then, notwithstanding the provisions of the preceding paragraph, except where it has discontinued its business, it may submit a written notification stating that it intends to cease to be subject to the application of the provisions of paragraph (4) only on or after the first day of the taxable period that includes the day on which three years have elapsed from the first day of the taxable period that includes the day of that purchase, etc. of an adjustment-target fixed asset (meaning the day specified in each item of Article 30, paragraph (1) for the category of cases set forth in that item pertaining to that purchase, etc. of an adjustment-target fixed asset; the same applies hereafter in this paragraph and Article 12-2, paragraph (2)). In this case, if, during the period from the first day of the taxable period that includes the day of that purchase, etc. of an adjustment-target fixed asset to the day of that purchase, etc. of an adjustment-target fixed asset, it has submitted to the district director having jurisdiction over its place for tax payment a written notification stating that it intends to cease to be subject to the application of the provisions of paragraph (4), then, for the purpose of the application of the provisions of the following paragraph, the submission of that written notification is deemed not to have been made.

When a written notification under the provisions of paragraph (5) has been submitted, the notification under the provisions of paragraph (4) ceases to be effective on or after the day following the last day of the taxable period that includes the day of that submission.

Special provisions on the application of paragraph (4) or the preceding paragraph in the case where, due to unavoidable circumstances, the written notification under the provisions of paragraph (4) or (5) could not be submitted by the day before the first day of the taxable period for which the business operator intends to become subject to, or to cease to be subject to, the application of the provisions of paragraph (4), and other matters necessary for the application of paragraph (7) in the case where the purchase, etc. of an adjustment-target fixed asset prescribed in that paragraph is the taking out of a bonded area of taxable goods pertaining to the submission of a special return, or in other cases, are specified by Cabinet Order.

In the case where the taxable sales in the base period for that year of an individual business operator, or in the base period for its business year of a corporation, are 10 million yen or less, if, among those individual business operators or corporations (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under paragraph (4) of the preceding Article), the taxable sales of the individual business operator in the specified period for that year, or of the corporation in the specified period for its business year, exceed 10 million yen, the main clause of paragraph (1) of that Article does not apply to taxable transfers, etc. of assets and specified taxable purchases in that year of that individual business operator or in that business year of that corporation.

The taxable sales in the specified period prescribed in the preceding paragraph means the balance remaining after deducting, from the total amount of consideration for taxable transfers, etc. of assets conducted in Japan during that specified period, the total of the amounts obtained by deducting the amount set forth in item (ii) from the amount set forth in item (i).

the amount of the refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) that was made during the specified period;

the amount calculated by multiplying the amount of consumption tax pertaining to the amount of the refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) that was made during the specified period by 100/78.

Where a business operator other than a foreign business operator applies paragraph (1), notwithstanding the preceding paragraph, it may treat as the taxable sales in the specified period under paragraph (1) the total of the amounts specified by Ministry of Finance Order as corresponding to the amount of the salary or other wage under that paragraph that should be stated in the payment slip prescribed in Article 231, paragraph (1) (Paper-Based Payment Slips for Salary and Other Wages, Severance Pay and Other Such Compensation, and Public Pensions and Retirement Packages) of the Income Tax Act, which the business operator paid during the specified period under paragraph (1).

The specified period prescribed in the preceding three paragraphs means the period specified in the following items for the category of business operators set forth in those items:

an individual business operator: the period from January 1 to June 30 of the year before that year;

a corporation that has a business year preceding its business year (excluding one of seven months or less and any other one specified by Cabinet Order (referred to as a "short business year" in the following item)): the six-month period from the day on which that preceding business year began;

a corporation whose business year preceding its business year is a short business year: the six-month period from the day on which the second business year preceding its business year (excluding one included in the base period for its business year and any other one specified by Cabinet Order) began (where that second preceding business year is six months or less, the period from the day on which that second preceding business year began to the day on which it ended).

Special provisions on that period in the case where the last day of the six-month period prescribed in item (ii) or (iii) of the preceding paragraph is not the last day of the month, and other matters necessary for the application of the preceding paragraphs, are specified by Cabinet Order.

In the case where an inheritance has occurred in a year, if an heir whose taxable sales in the base period for that year are 10 million yen or less (excluding an heir whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1); the same applies hereafter in this paragraph and the following paragraph) has succeeded to the business of a decedent whose taxable sales in that base period exceed 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases of that heir during the period from the day following the day of that inheritance to December 31 of that year.

In the case where the taxable sales in the base period for the year of an heir who succeeded to the business of a decedent by inheritance in the year before, or two years before, that year are 10 million yen or less, if the total of the taxable sales of that heir in that base period and the taxable sales in that base period of the decedent pertaining to that inheritance exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases of that heir in that year.

Matters necessary for the calculation of the taxable sales in the base period of a decedent in the case where, by inheritance, the business of a decedent having two or more places of business has been succeeded to by two or more heirs who divided those two or more places of business among them place by place, and other matters necessary for the application of the preceding two paragraphs, are specified by Cabinet Order.

In the case where a merger (excluding a merger in which a corporation is established through the merger; the same applies hereafter in this paragraph and the following paragraph) has taken place, if the amount calculated as provided by Cabinet Order as the taxable sales of a merged corporation in the period corresponding to the base period for the business year of the merging corporation that includes the day on which the merger took place (if there are two or more merged corporations, that amount pertaining to any one of the merged corporations) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases during the period from the day on which that merger took place to the last day of the business year that includes the day on which that merger took place, in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

In the case where a merger took place during the period from the day following the first day of the base period for the business year of a merging corporation to the day before the first day of that business year, if the total of the taxable sales of that merging corporation in the base period for that business year and the amount calculated as provided by Cabinet Order as the taxable sales of a merged corporation in the period corresponding to the base period for that business year of that merging corporation (if there are two or more merged corporations, the total of that amount pertaining to each merged corporation) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

In the case where a merger (limited to a merger in which a corporation is established through the merger; the same applies hereafter in this paragraph and the following paragraph) has taken place, if any of the amounts calculated as provided by Cabinet Order as the taxable sales of the merged corporations in the period corresponding to the base period for the business year of the merging corporation that includes the day on which the merger took place exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in the business year that includes the day on which that merger took place of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4)).

In the case where a merger took place during the period from the day two years before the first day of the business year of a merging corporation to the day before the first day of that business year, if the total of the taxable sales of that merging corporation in the base period for that business year (meaning the balance remaining after deducting the total tax-exclusive refunds, etc. of consideration for sales in the base period for the business year from the total amount of consideration for taxable transfers, etc. of assets in Japan during the base period for the business year; the same applies hereafter in this paragraph) and the total of the amounts calculated as provided by Cabinet Order as the taxable sales of each merged corporation in the period corresponding to the base period for that business year of that merging corporation (or, where that merging corporation has no taxable sales in the base period for that business year or in any other case specified by Cabinet Order, the amount specified by Cabinet Order) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period prescribed in Article 9, paragraph (1) are 10 million yen or less) of that merging corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

In the case where a corporate split, etc. has taken place, if the amount calculated as provided by Cabinet Order as the taxable sales of the corporation that carried out that corporate split, etc. (hereinafter in this paragraph through paragraph (4) referred to as a "split-off parent corporation") in the period corresponding to the base period for the business year that includes the day on which the corporate split, etc. took place of the corporation established through that corporate split, etc. or that received the transfer of assets through it (hereinafter in this paragraph through paragraph (4) referred to as a "split-off subsidiary corporation") (if there are two or more split-off parent corporations, that amount pertaining to any one of the split-off parent corporations) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases during the period from the day on which that corporate split, etc. took place to the last day of the business year that includes the day on which that corporate split, etc. took place, of that split-off subsidiary corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4)).

In the case where a corporate split, etc. took place during the period from the day before the day one year before the first day of the business year of a split-off subsidiary corporation to the day before the first day of that business year, if the amount calculated as provided by Cabinet Order as the taxable sales of a split-off parent corporation in the period corresponding to the base period for that business year of that split-off subsidiary corporation (if there are two or more split-off parent corporations, that amount pertaining to any one of the split-off parent corporations) exceeds 10 million yen, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year of that split-off subsidiary corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

In the case where a corporate split, etc. (excluding one involving two or more split-off parent corporations; the same applies in the following paragraph) took place on or before the day two days before the day that is one year before the first day of the relevant business year of a split-off subsidiary corporation, and the split-off subsidiary corporation falls under the specified requirement (meaning a case where shares or capital contributions in a number or amount exceeding 50 percent of the total number or total amount of the issued shares or capital contributions of the split-off subsidiary corporation (excluding treasury shares or capital contributions held by that split-off subsidiary corporation) belong to the split-off parent corporation and persons having a special relationship specified by Cabinet Order with that split-off parent corporation, or any other case specified by Cabinet Order; the same applies in the following paragraph) on the last day of the base period of that business year, and the total of the amount calculated as provided by Cabinet Order as the taxable sales of that split-off subsidiary corporation in the base period of that business year and the amount calculated as provided by Cabinet Order as the taxable sales of that split-off parent corporation in the period corresponding to the base period of that business year of that split-off subsidiary corporation exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period prescribed in Article 9, paragraph (1) are 10 million yen or less) of that split-off subsidiary corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

In the case where a corporate split, etc. took place on or before the day two days before the day that is one year before the first day of the relevant business year of a split-off parent corporation, and a split-off subsidiary corporation falls under the specified requirement on the last day of the base period of that business year, and the total of the taxable sales of that split-off parent corporation in the base period of that business year and the amount calculated as provided by Cabinet Order as the taxable sales of that split-off subsidiary corporation in the period corresponding to the base period of that business year of that split-off parent corporation exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that split-off parent corporation (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

In the case where an absorption-type company split took place, if the amount calculated as provided by Cabinet Order as the taxable sales of the splitting corporation in the period corresponding to the base period of the business year of the successor corporation in a company split that includes the day on which the absorption-type company split took place (if there are two or more splitting corporations, that amount in relation to any one of the splitting corporations) exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases during the period from the day on which the absorption-type company split took place to the last day of the business year that includes that day, in the business year that includes the day on which that absorption-type company split took place (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that successor corporation in a company split (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

In the case where an absorption-type company split took place during the period from the day before the day that is one year before the first day of the relevant business year of a successor corporation in a company split to the day before the first day of that business year, if the amount calculated as provided by Cabinet Order as the taxable sales of the splitting corporation in the period corresponding to the base period of that business year of that successor corporation in a company split (if there are two or more splitting corporations, that amount in relation to any one of the splitting corporations) exceeds 10 million yen, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in that business year (limited to a business year in which the taxable sales in the base period are 10 million yen or less) of that successor corporation in a company split (excluding one whose obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1)).

The corporate split, etc. prescribed in paragraphs (1) through (4) means any of the following.

incorporation-type company split;

the establishment of a new corporation in the case where a corporation, in order to establish the new corporation, makes a contribution of assets it holds other than money (limited to a case where, at the time of the establishment of the new corporation, the corporation will hold all of the issued shares or capital contributions as a result of the contribution of those assets or other contribution for that establishment) and hands over all or part of its business to the corporation newly established through that contribution;

of the transfers of assets other than money under a contract in respect of an act set forth in Article 467, paragraph (1), item (v) (Approval of Transfers of Business) of the Companies Act (Act No. 86 of 2005), in the case where a corporation makes a monetary contribution in order to establish a new corporation and concludes that contract with the new corporation, those that satisfy the requirement that the corporation holds all of the issued shares at the time of the establishment of that new corporation or any other requirement specified by Cabinet Order.

Of corporations that have no base period for the business year (excluding a social welfare corporation prescribed in Article 22 (Definitions) of the Social Welfare Act (Act No. 45 of 1951) and any other corporation established exclusively for the purpose of making transfers, etc. of assets listed in Appended Table 2, as specified by Cabinet Order), for a corporation whose amount of capital or contributions on the first day of that business year is 10 million yen or more (hereinafter in this paragraph and the following paragraph referred to as a "newly established corporation"), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period included in the business year of that newly established corporation in which it has no base period (excluding a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 11, paragraph (3) or (4), or paragraph (1) or (2) of the preceding Article).

In the case where a newly established corporation prescribed in the preceding paragraph makes a purchase, etc. of an adjustment-target fixed asset during a taxable period included in the business year in which it has no base period (excluding a taxable period to which the provisions of Article 37, paragraph (1) apply), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period that includes the day of the purchase, etc. of the adjustment-target fixed asset by that newly established corporation through the taxable period that includes the day on which three years have elapsed from the first day of that taxable period (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 11, paragraph (3) or (4), paragraphs (1) through (3) of the preceding Article, or the preceding paragraph).

In the case where a foreign corporation that has a base period for the business year (meaning a foreign corporation prescribed in Article 2, item (iv) (Definitions) of the Corporation Tax Act; the same applies in paragraph (5) of the following Article) commences, on or after the day following the last day of that base period, a business relating to taxable transfers, etc. of assets in Japan, the provisions of the preceding two paragraphs apply to that business year, deeming that there is no base period.

Necessary matters concerning the application of the provisions of paragraph (2) in the case where the purchase, etc. of an adjustment-target fixed asset prescribed in that paragraph is the taking of taxable goods out of a bonded area in connection with the submission of a special return, and in other cases, are specified by Cabinet Order.

Of corporations that have no base period for the business year (excluding a newly established corporation prescribed in paragraph (1) of the preceding Article, a social welfare corporation prescribed in Article 22 (Definitions) of the Social Welfare Act, and any other corporation established exclusively for the purpose of making transfers, etc. of assets listed in Appended Table 2, as specified by Cabinet Order; hereinafter in this Article referred to as a "newly founded corporation"), for a newly founded corporation in the case where, on the first day of the business year in which it has no base period (hereinafter in this paragraph and the following paragraph referred to as the "new establishment start date"), it falls under the specified requirement (meaning a case where shares or capital contributions in a number or amount exceeding 50 percent of the total number or total amount of the issued shares or capital contributions of the newly founded corporation (excluding treasury shares or capital contributions held by that newly founded corporation) are held directly or indirectly by another person, or any other case specified by Cabinet Order as one in which the newly founded corporation is controlled by another person; the same applies hereinafter in this Article), and, with respect to any one of the other person who formed the basis for the determination that the newly founded corporation falls under the specified requirement and the corporations having a special relationship specified by Cabinet Order with that other person, the amount calculated as provided by Cabinet Order as taxable sales in the period corresponding to the base period of the business year of that newly founded corporation that includes the new establishment start date (excluding the amount of consideration for taxable transfers, etc. of assets in a business conducted by the national government or a local government as business pertaining to its general account) exceeds 500 million yen or the amount calculated as provided by Cabinet Order as gross revenue in the period corresponding to that base period (excluding that in a business conducted by the national government or a local government as business pertaining to its general account, or in a business conducted by a foreign country or a local government of a foreign country) exceeds 5 billion yen (such a newly founded corporation is hereinafter in this paragraph and paragraph (3) referred to as a "specified newly founded corporation"), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period included in the business year of that specified newly founded corporation in which it has no base period (excluding a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 11, paragraph (3) or (4), Article 12, paragraph (1) or (2), or paragraph (2) of the preceding Article).

In the case where a newly founded corporation falls under the specified requirement on its new establishment start date and, among corporations that were corporations having the special relationship specified by Cabinet Order prescribed in the preceding paragraph with the other person prescribed in that paragraph and that were dissolved within one year before the day of establishment of that newly founded corporation or within one year before that new establishment start date, there is one that fell under a corporation having that special relationship on the day of its dissolution (excluding one that is still a corporation having that special relationship on that new establishment start date; hereinafter in this paragraph referred to as a "dissolved corporation"), the provisions of the preceding paragraph apply to that newly founded corporation, deeming that dissolved corporation to be a corporation having that special relationship.

The provisions of paragraphs (2) and (4) of the preceding Article apply mutatis mutandis to the case where a specified newly founded corporation makes a purchase, etc. of an adjustment-target fixed asset during a taxable period included in the business year in which it has no base period (excluding a taxable period to which the provisions of Article 37, paragraph (1) apply). In this case, the phrase "newly established corporation prescribed in the preceding paragraph" in paragraph (2) of the preceding Article is deemed to be replaced with "specified newly founded corporation prescribed in paragraph (1) of the following Article", the phrase "that newly established corporation" with "that specified newly founded corporation", and the phrase "or the preceding paragraph" with "this paragraph, or paragraph (1) of the following Article".

The other person prescribed in paragraph (1), when requested by a newly founded corporation that falls under the specified requirement to provide information on matters necessary for determining whether the case applies where the amount calculated as provided by Cabinet Order as the taxable sales referred to in that paragraph exceeds 500 million yen or the case applies where the amount calculated as provided by Cabinet Order as the gross revenue referred to in that paragraph exceeds 5 billion yen, must comply with the request.

In the case where a foreign corporation that has a base period for the business year commences, on or after the day following the last day of that base period, a business relating to taxable transfers, etc. of assets in Japan, the provisions of the preceding paragraphs apply to that business year, deeming that there is no base period.

Beyond what is specified in paragraph (2) through the preceding paragraph, necessary matters concerning the application of the provisions of paragraph (1) are specified by Cabinet Order.

In the case where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes, during a taxable period to which the provisions of Article 37, paragraph (1) do not apply, a taxable purchase in Japan of a high-value specified asset (meaning inventory or an adjustment-target fixed asset whose value is high as specified by Cabinet Order; the same applies hereinafter in this Article) or the taking out of a bonded area of taxable goods that fall under a high-value specified asset (hereinafter in this paragraph referred to as a "purchase, etc. of a high-value specified asset") (in the case of a high-value specified asset that the business operator itself constructed, manufactured or produced (hereinafter in this paragraph and the following paragraph referred to as "construction, etc.") under a contract with another person or as inventory or an adjustment-target fixed asset of the business operator (hereinafter in this paragraph referred to as a "self-constructed high-value specified asset"), the case where the amount of expenses specified by Cabinet Order required for the construction, etc. of that self-constructed high-value specified asset becomes the amount specified by Cabinet Order or more (referred to in item (ii) as a "case of a purchase of a self-constructed high-value specified asset")), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period following the taxable period that includes the day of that purchase, etc. of a high-value specified asset (meaning the day specified in each of the following items according to the category of high-value specified asset set forth in that item) through the taxable period that includes the day on which three years have elapsed from the first day of the taxable period that includes the day of that purchase, etc. of a high-value specified asset (in the case of a self-constructed high-value specified asset, the taxable period that includes the day on which the construction, etc. of that self-constructed high-value specified asset is completed) (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 10, paragraph (2), Article 11, paragraph (2) or (4), Article 12, paragraphs (2) through (4) or paragraph (6), Article 12-2, paragraph (1) or (2), or paragraph (1) or (3) of the preceding Article).

a high-value specified asset (excluding a self-constructed high-value specified asset): the day specified in each item of Article 30, paragraph (1) according to the category of case set forth in that item, relating to the purchase, etc. of the high-value specified asset;

a self-constructed high-value specified asset: the day on which that self-constructed high-value specified asset came to fall under a case of a purchase of a self-constructed high-value specified asset.

In the case where a business operator has been subject to the application of the provisions of Article 36, paragraph (1) or (3) in respect of inventory or taxable goods that are high-value specified assets, or inventory that the business operator itself constructed, etc. under a contract with another person or as its own inventory (including inventory that a decedent, merged corporation or splitting corporation itself constructed, etc. where the business operator succeeded to the business of that decedent, merged corporation or splitting corporation through inheritance, merger or split; limited to inventory for which the amount of expenses specified by Cabinet Order required for the construction, etc. of that inventory has become the amount specified by Cabinet Order or more; hereinafter in this paragraph referred to as an "adjustment-target self-constructed high-value asset"), the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period following the taxable period in which those provisions were applied through the taxable period that includes the day on which three years have elapsed from the first day of the taxable period in which those provisions were applied (in the case of an adjustment-target self-constructed high-value asset whose construction, etc. had not been completed by the day before the day on which it came to fall under the case prescribed in those provisions, the taxable period that includes the day on which that construction, etc. is completed) (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 10, paragraph (2), Article 11, paragraph (2) or (4), Article 12, paragraphs (2) through (4) or paragraph (6), Article 12-2, paragraph (1) or (2), paragraph (1) or (3) of the preceding Article, or the preceding paragraph).

In the case where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes, during a taxable period to which the provisions of Article 37, paragraph (1) do not apply, a taxable purchase in Japan of gold or platinum bullion or any other asset similar thereto as specified by Ministry of Finance Order (hereinafter in this paragraph referred to as "gold bullion and similar items") or the taking out of a bonded area of taxable goods that fall under gold bullion and similar items (including a taxable purchase or a taking out of a bonded area relating to inventory to which the provisions of Article 36, paragraph (1) or (3) apply in that taxable period; hereinafter in this paragraph referred to as a "purchase, etc. of gold bullion and similar items"), if the case falls under a case specified by Cabinet Order as one in which the total amount of that purchase, etc. of gold bullion and similar items during that taxable period is high, the provisions of the main clause of Article 9, paragraph (1) do not apply to taxable transfers, etc. of assets and specified taxable purchases in each taxable period from the taxable period following the taxable period in which that purchase, etc. of gold bullion and similar items was made through the taxable period that includes the day on which three years have elapsed from the first day of the taxable period in which that purchase, etc. of gold bullion and similar items was made (excluding a taxable period in which the taxable sales in the base period exceed 10 million yen and a taxable period for which the obligation to pay consumption tax is not exempted by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Article 9-2, paragraph (1), Article 10, paragraph (2), Article 11, paragraph (2) or (4), Article 12, paragraphs (2) through (4) or paragraph (6), Article 12-2, paragraph (1) or (2), paragraph (1) or (3) of the preceding Article, or the preceding two paragraphs).

Necessary matters concerning the application of the provisions of paragraph (1) or the preceding paragraph in the case where the purchase, etc. of a high-value specified asset prescribed in paragraph (1) or the purchase, etc. of gold bullion and similar items prescribed in the preceding paragraph is the taking of taxable goods out of a bonded area in connection with the submission of a special return, and otherwise concerning the application of the provisions of the preceding three paragraphs, are specified by Cabinet Order.

Where a person who is legally regarded as having made a transfer, etc. of assets is a mere nominee and does not enjoy the consideration for that transfer, etc. of assets, and a person other than that person enjoys the consideration for that transfer, etc. of assets, the provisions of this Act apply on the basis that that transfer, etc. of assets was made by the person who enjoys that consideration.

Where a person who is legally regarded as having made a specified purchase is a mere nominee and does not pay the consideration for that specified purchase, and a person other than that person is the person who is to pay the consideration for that specified purchase, the provisions of this Act apply on the basis that that specified purchase was made by the person who is to pay that consideration.

A beneficiary of a trust (limited to a person who actually has rights as a beneficiary) is deemed to hold the assets belonging to the trust property of that trust, and the asset transactions, etc. pertaining to that trust property (meaning transfers, etc. of assets, taxable purchases and the taking of taxable goods out of a bonded area; the same applies hereafter in this paragraph and paragraph (1) of the following Article) are deemed to be the asset transactions, etc. of that beneficiary, and the provisions of this Act apply; provided, however, that this does not apply to the assets belonging to the trust property of a group investment trust prescribed in Article 2, item (xxix) (Definitions) of the Corporation Tax Act, a trust subject to corporate taxation prescribed in item (xxix)-2 of that Article, a retirement pension trust, etc. prescribed in Article 12, paragraph (4), item (i) (Vesting of Assets and Liabilities in Trust Property and Profit and Expenses to Be Attributed to Trust Property) of that Act, or a public interest trust or participant protection trust prescribed in item (ii) of that paragraph, or to the asset transactions, etc. pertaining to that trust property.

A person who actually has the authority to make changes to a trust (other than what Cabinet Order prescribes as the authority to make minor changes) and who is meant to benefit from the trust property of that trust (other than a beneficiary) is deemed to be a beneficiary as prescribed in the preceding paragraph, and the provisions of that paragraph apply.

The application of paragraph (1) in the case where there are two or more beneficiaries, the determination of whether a person falls under a person who is meant to benefit from the trust property as prescribed in the preceding paragraph, and other matters necessary for the application of the provisions of the preceding two paragraphs are specified by Cabinet Order.

The trustee of a trust subject to corporate taxation prescribed in the proviso to paragraph (1) of the preceding Article or a public interest trust prescribed in the proviso to that paragraph (hereinafter in this Article referred to as a "trust subject to corporate taxation, etc.") is deemed to be a separate person for each of the trust assets, etc. (meaning the assets belonging to the trust property and the asset transactions, etc. pertaining to that trust property; the same applies hereafter in this Article) of each trust subject to corporate taxation, etc. and its own assets, etc. (meaning the assets and asset transactions, etc. other than the trust assets, etc. of trusts subject to corporate taxation, etc.; the same applies hereafter in this Article), and the provisions of this Act (excluding Article 5, the preceding Article, Articles 20 through 27, Articles 47, 50 and 51, and Chapter VI; the same applies hereafter in this Article) apply.

In the case referred to in the preceding paragraph, the trust assets, etc. and own assets, etc. of each trust subject to corporate taxation, etc. belong to the respective separate persons deemed under that paragraph.

Where an individual business operator is a trustee business operator (meaning the trustee of a trust subject to corporate taxation, etc. where, under the preceding two paragraphs, the provisions of this Act are applied to that trustee as the person to whom the trust assets, etc. pertaining to that trust subject to corporate taxation, etc. belong; the same applies hereafter in this Article), that trustee business operator is deemed to be a corporation, and the provisions of this Act apply.

With respect to the taxable sales in the base period for the taxable period of an own-assets business operator (meaning the trustee of a trust subject to corporate taxation, etc. where, under paragraphs (1) and (2), the provisions of this Act are applied to that trustee as the person to whom the own assets, etc. pertaining to that trust subject to corporate taxation, etc. belong; the same applies hereafter in this Article), notwithstanding Article 9, paragraph (2), the taxable sales are the total of the following amounts:

the amount calculated under Article 9, paragraph (2) as the taxable sales in the base period of that own-assets business operator for that taxable period;

the total of the amounts calculated as provided by Cabinet Order as the taxable sales of the trustee business operator of each trust subject to corporate taxation, etc. pertaining to that own-assets business operator in the period corresponding to the base period of that own-assets business operator.

With respect to the taxable sales in the base period for the taxable period of a trustee business operator, notwithstanding Article 9, paragraph (2), the taxable sales are the taxable sales in the base period for the taxable period of the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator that includes the first day of that taxable period.

In the case where, on the first day of the taxable period of a trustee business operator, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator is a qualified invoice issuer on the first day of the taxable period of that own-assets business operator that includes that first day (limited to a taxable period in which its taxable sales in the base period are 10 million yen or less), or is a business operator whose obligation to pay consumption tax is not exempted, for taxable transfers, etc. of assets and specified taxable purchases in that taxable period, by the submission of a written notification under Article 9, paragraph (4), or under the provisions of Articles 10 through 12-4, the main clause of Article 9, paragraph (1) does not apply to taxable transfers, etc. of assets and specified taxable purchases in the taxable period of that trustee business operator that includes that first day.

With respect to the taxable sales in the specified period prescribed in Article 9-2, paragraph (1) (or, where paragraph (3) of that Article applies, the total prescribed in that paragraph), the taxable sales in the base period for that business year prescribed in Article 11, paragraph (4), and the taxable sales in the taxable period prescribed in Article 30, paragraph (2) of an own-assets business operator or trustee business operator, notwithstanding Article 9-2, paragraph (2) or (3), Article 11, paragraph (4) or Article 30, paragraph (6), the taxable sales are, respectively, the amounts calculated as provided by Cabinet Order in accordance with paragraph (4) or (5) as corresponding to those amounts.

Article 37, paragraph (1) applies to the taxable period of a trustee business operator that includes the first day of that taxable period only in the case where, on that first day, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator is a business operator to which Article 37, paragraph (1) applies for the taxable period of that own-assets business operator that includes that first day. In this case, in that paragraph, the phrase "business operator (" is deemed to be replaced with "trustee business operator (meaning a trustee business operator prescribed in Article 15, paragraph (3), and excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) on the first day of its taxable period, the own-assets business operator of the trust subject to corporate taxation, etc. pertaining to that trustee business operator (meaning a trust subject to corporate taxation, etc. prescribed in Article 15, paragraph (1)) (meaning an own-assets business operator prescribed in paragraph (4) of that Article, and"; the phrase "to the district director having jurisdiction over its place for tax payment, for a taxable period in which its" is deemed to be replaced with "for a taxable period in which its"; the phrase "a written notification stating that it will be subject to the application of this paragraph, then, for each taxable period from the taxable period following the taxable period that includes the day on which the written notification was submitted (or, where the taxable period that includes the day on which the written notification was submitted is the taxable period that includes the day on which the business was commenced or any other taxable period specified by Cabinet Order, from that taxable period) onward (excluding a taxable period in which its taxable sales in the base period exceed 50 million yen and a taxable period pertaining to a corporate split, etc.)" is deemed to be replaced with "is a business operator to which this paragraph applies, then, for the taxable period of that trustee business operator that includes that first day"; and the phrase "that business operator" in the items of that paragraph is deemed to be replaced with "that trustee business operator".

Where the own-assets business operator referred to in the preceding paragraph has become subject to the application of Article 37-2, paragraph (1) or (6) for the taxable period of that own-assets business operator that includes the first day prescribed in that paragraph (hereinafter in this paragraph referred to as the "own-assets taxable period"), the application of the preceding paragraph is as provided in the following items for the category of cases set forth in those items:

in the case where the own-assets taxable period is an elected disaster-affected taxable period prescribed in Article 37-2, paragraph (1) and approval under that paragraph has been obtained for that elected disaster-affected taxable period: the own-assets business operator is deemed to have been a business operator subject to the application of Article 37, paragraph (1) on the first day prescribed in the preceding paragraph;

in the case where the own-assets taxable period is a disaster-affected taxable period of discontinuance prescribed in Article 37-2, paragraph (6) and approval under that paragraph has been obtained for that disaster-affected taxable period of discontinuance: the own-assets business operator is deemed not to have been a business operator subject to the application of Article 37, paragraph (1) on the first day prescribed in the preceding paragraph.

For the application of Article 42 to a trustee business operator, a merger of trusts is deemed to be a merger, and the trustee business operator pertaining to the trust subject to corporate taxation, etc. that is the former trust involved in the merger of trusts is to be included in the merged corporation, and the trustee business operator pertaining to the trust subject to corporate taxation, etc. that is the new trust involved in the merger of trusts is to be included in the merging corporation.

The provisions of Article 9, paragraphs (4) through (9), Articles 10 through 12-4, Article 37, paragraphs (3) through (8), Article 37-2 and Articles 57 through 57-3 do not apply to a trustee business operator.

Where there are two or more trustees of a trust subject to corporate taxation, etc., the trust assets, etc. of each trustee pertaining to that trust subject to corporate taxation, etc. are deemed to be the trust assets, etc. of the trustee who presides over the trust affairs of that trust subject to corporate taxation, etc. (hereinafter in this Article referred to as the "presiding trustee"), and the provisions of this Act apply.

With respect to the consumption tax pertaining to the trust assets, etc. deemed under the preceding paragraph to be the trust assets, etc. of the presiding trustee, trustees other than the presiding trustee are liable for joint payment of that consumption tax.

For the application of the provisions of Article 43, paragraph (1) (Competent Agency for Collection of National Taxes) of the Act on General Rules for National Taxes where the consumption tax prescribed in the preceding paragraph is collected from a trustee other than the presiding trustee, in that paragraph, the phrase "The collection of a national tax" is deemed to be replaced with "The collection of consumption tax pertaining to the liability for joint payment prescribed in Article 15, paragraph (13) of the Consumption Tax Act of a trustee other than the presiding trustee prescribed in paragraph (12) of that Article (hereinafter in this paragraph referred to as the "presiding trustee") (hereinafter in this paragraph referred to as a "jointly liable trustee") of a trust subject to corporate taxation, etc. prescribed in paragraph (1) of that Article (Application of This Act to Trustees of Trusts Subject to Corporate Taxation, etc.)", and the phrase "the place for tax payment of the national tax" is deemed to be replaced with "the place for tax payment of that consumption tax or the place for tax payment of that consumption tax in the case where that jointly liable trustee had been the presiding trustee of that trust subject to corporate taxation, etc.".

In addition to what is provided for in the preceding paragraphs, matters necessary for the calculation of the amount of consumption tax on purchases in the case where a merger or split of trusts subject to corporate taxation, etc. has taken place, and other matters necessary for the application of the provisions of this Act to a trustee business operator or an own-assets business operator, are specified by Cabinet Order.

Where the supply of telecommunications services conducted in Japan by a foreign business operator (excluding that which falls under the provision of telecommunications services for businesses; the same applies hereafter in this Article) is conducted via a digital platform (meaning a venue constructed through information processing using computers that is intended for use by an unspecified and large number of persons, and that is ordinarily provided via a telecommunications line to an unspecified and large number of persons for displaying information on the supply of telecommunications services so that persons other than the person providing the venue can supply telecommunications services via the venue; the same applies hereafter in this Article), and the consideration for it is received via a specified platform operator (meaning, among business operators that provide that digital platform (referred to as "platform operators" in the following paragraph), one that has been designated by the Commissioner of the National Tax Agency pursuant to the provisions of that paragraph; hereinafter in this Article), the provisions of this Act apply deeming that the specified platform operator has supplied those telecommunications services.

The Commissioner of the National Tax Agency is to designate a platform operator as a business operator deemed under the preceding paragraph to have supplied telecommunications services if, in the taxable period of the platform operator, the total of the amounts of consideration for the supply of telecommunications services conducted in Japan by foreign business operators via the digital platform it provides (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 including, where there is an amount equivalent to the amount of consumption tax to be imposed on that supply of telecommunications services and to the amount of local consumption tax to be imposed with that amount of consumption tax as the tax base (excluding an amount equivalent to the amount of accessory taxes on those amounts of tax), that equivalent amount; the same applies in paragraph (7)) that is received via that platform operator (or, where that taxable period is less than one year, the amount calculated by dividing that total by the number of months in that taxable period (calculated according to the calendar, with a fraction of less than one month counted as one month; the same applies in that paragraph) and multiplying the result by 12) exceeds 5 billion yen. In this case, the designation takes effect on the first day of the month following the month that includes the day on which six months have elapsed from the deadline for filing of the written notification under the following paragraph (or, where the written notification has not been submitted by that deadline, from the day on which the notice under paragraph (4) pertaining to the designation was issued).

A person that is to be designated as a specified platform operator under the preceding paragraph must submit to the Commissioner of the National Tax Agency, via the district director having jurisdiction over its place for tax payment, a written notification stating that fact and other matters specified by Ministry of Finance Order, by the deadline for filing of the return under Article 45, paragraph (1) for its taxable period (or, where it has no obligation to file a return under that paragraph, the deadline for filing of the return under that paragraph that would apply if it had that obligation); provided, however, that this does not apply to a person that is a specified platform operator on the last day of that taxable period.

When the Commissioner of the National Tax Agency has designated a specified platform operator under paragraph (2), the Commissioner is to notify that specified platform operator to that effect in writing. In this case, the Commissioner of the National Tax Agency must promptly publish, as provided by Cabinet Order, the name of the digital platform pertaining to that specified platform operator and other matters specified by Cabinet Order.

A specified platform operator that has received the notice under the preceding paragraph is to promptly notify the foreign business operator pertaining to the supply of telecommunications services to which the provisions of paragraph (1) are to apply that the provisions of that paragraph are to apply, and the date thereof.

A specified platform operator must, when there has been a change in the matters published pursuant to paragraph (4), promptly submit a written notification to that effect to the Commissioner of the National Tax Agency via the district director having jurisdiction over its place for tax payment. In this case, the Commissioner of the National Tax Agency must promptly publish the matters that have changed, as provided by Cabinet Order.

A specified platform operator may, where the total of the amounts of consideration for the supply of telecommunications services to which paragraph (1) applies is 5 billion yen or less in every taxable period from its taxable period through the taxable period that includes the day on which three years have elapsed from the first day of that taxable period (hereinafter in this paragraph referred to as the "third-year taxable period") (or, where any of those taxable periods is less than one year, the amount calculated by dividing that total by the number of months in that taxable period and multiplying the result by 12), apply to have the designation under paragraph (2) lifted, by submitting to the Commissioner of the National Tax Agency via the district director having jurisdiction over its place for tax payment, by the deadline for filing of the return under Article 45, paragraph (1) for the third-year taxable period, a document stating that fact and other matters specified by Ministry of Finance Order.

When there has been an application under the preceding paragraph, the Commissioner of the National Tax Agency is to examine it without delay and lift the designation pertaining to the application, or, where the Commissioner finds that the case does not fall under the case set forth in that paragraph, dismiss the application.

A business operator whose designation as a specified platform operator has been lifted pursuant to the preceding paragraph is deemed to continue to be a specified platform operator, and paragraph (1) applies, during the period from the day following the day on which the Commissioner of the National Tax Agency issued the notice under paragraph (12) until the last day of the month that includes the day on which six months have elapsed from that following day.

A specified platform operator must, when it has discontinued the business pertaining to a digital platform to which paragraph (1) applies, promptly submit a written notification to that effect to the Commissioner of the National Tax Agency via the district director having jurisdiction over its place for tax payment.

The Commissioner of the National Tax Agency may lift the designation of a specified platform operator under paragraph (2) if the Commissioner finds that the specified platform operator falls under any of the following facts:

it is found that the business pertaining to a digital platform to which paragraph (1) applies has been discontinued;

in the case where no return filed by the due date prescribed in Article 17, paragraph (2) (Filing of a Return by the Due Date) of the Act on General Rules for National Taxes has been submitted with respect to consumption tax, it is found that there is no justifiable reason for the non-submission;

it currently has arrears of national taxes and the collection of the amount of taxes in arrears is extremely difficult;

beyond what is set forth in the preceding three items, it is found that there is an obstacle to ensuring the collection of consumption tax.

When the Commissioner of the National Tax Agency has lifted the designation of a specified platform operator pursuant to paragraph (8) or the preceding paragraph, or has dismissed an application pursuant to paragraph (8), the Commissioner is to notify the business operator subject to those dispositions to that effect in writing. In this case, when the Commissioner of the National Tax Agency has given the notice pertaining to the lifting of a designation, the Commissioner must promptly publish, as provided by Cabinet Order, the fact that the designation has been lifted and the date on which paragraph (1) ceases to apply.

A business operator that has received the notice under the preceding paragraph pertaining to the lifting of the designation of a specified platform operator is to promptly notify the foreign business operator pertaining to the supply of telecommunications services to which paragraph (1) will cease to apply that the provisions of that paragraph will cease to apply, and the date thereof.

For the application of Article 9, paragraph (1) and Article 37, paragraph (1) to a specified platform operator to which paragraph (1) applies, in Article 9, paragraph (1), the phrase "excluding a qualified invoice issuer" is deemed to be replaced with "excluding a qualified invoice issuer and a specified platform operator prescribed in Article 15-2, paragraph (1) to which that paragraph applies", and in Article 37, paragraph (1), the phrase "and a foreign business operator" is deemed to be replaced with ", a foreign business operator and a specified platform operator prescribed in Article 15-2, paragraph (1) to which that paragraph applies".

A specified platform operator must attach to the return under Article 45, paragraph (1) for its taxable period (including a return filed after the due date prescribed in Article 18, paragraph (2) (Filing of a Return after the Due Date) of the Act on General Rules for National Taxes that pertains to that return) a detailed statement stating the amount to which paragraph (1) applies and other matters specified by Ministry of Finance Order.

In addition to what is provided for in the preceding paragraphs, the procedures in the case where a business operator succeeds, by merger or split, to the business pertaining to the digital platform of a specified platform operator, or acquires that business by transfer, and other matters necessary for the application of the provisions of this Article, are specified by Cabinet Order.

Where an individual business operator has made a transfer, etc. of assets that falls under a transfer on deferred payment terms of assets giving rise to timber income or capital gains prescribed in Article 132, paragraph (1) (Deferring Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) of the Income Tax Act (hereinafter in this Article referred to as a "transfer on deferred payment terms"), if that individual business operator (including its heir; the same applies hereafter in this Article) has obtained the permission for deferred payment under that paragraph for all or part of the amount of income tax pertaining to that transfer on deferred payment terms, then, for the part of that transfer on deferred payment terms that pertains to installments of that transfer on deferred payment terms whose payment due dates do not arrive in the taxable period that includes the day on which that transfer on deferred payment terms was made (excluding installments received in that taxable period), the individual business operator may deem that it did not make a transfer, etc. of assets in that taxable period, and deduct the amount of consideration pertaining to that part from the amount of consideration pertaining to that transfer on deferred payment terms in that taxable period.

The part that is deemed under the preceding paragraph not to have been the subject of a transfer, etc. of assets in the taxable period that includes the day on which the transfer on deferred payment terms was made is deemed to be the subject of a transfer, etc. of assets made, as provided by Cabinet Order, by that individual business operator in each taxable period that includes the due date for payment of the installments pertaining to that transfer on deferred payment terms, for the part pertaining to each such installment; provided, however, that where, with respect to the amount of income tax pertaining to the transfer on deferred payment terms, the permission for deferred payment referred to in the preceding paragraph is rescinded pursuant to Article 135, paragraph (1) (Cancelling Deferments for Payment of Income Taxes on Assets Transferred on a Deferred-Payment Basis) of the Income Tax Act, this does not apply to the taxable periods on or after the taxable period that includes the day on which the permission for deferred payment was rescinded.

An individual business operator that intends to be subject to the application of paragraph (1) is to make a note to that effect on the return under Article 45, paragraph (1) for the taxable period for which it intends to be subject to that application and for each taxable period for which it intends to be subject to the application of the main clause of the preceding paragraph (including a return filed after the due date prescribed in Article 18, paragraph (2) (Filing of a Return after the Due Date) of the Act on General Rules for National Taxes that pertains to that return; the same applies in Article 17, paragraph (4) and Article 18, paragraph (2)).

In addition to what is provided for in the preceding paragraph, special provisions on the time of transfers, etc. of assets pertaining to a transfer on deferred payment terms in the case where an individual business operator to which paragraph (1) applies has died or has become subject to the application of the main clause of Article 9, paragraph (1), and other matters necessary for the application of paragraph (1) or (2), are specified by Cabinet Order.

Where a business operator makes a transfer, etc. of assets under a contract for undertaking long-term large-scale construction prescribed in Article 66, paragraph (1) (Periods to Which Revenue and Expenses Associated with Contracts for Construction Work Are Attributed) of the Income Tax Act or Article 63, paragraph (1) (Special Provisions on the Business Year to Which Profits and Expenses Associated with Contracts for Construction Work Are Attributed) of the Corporation Tax Act (hereinafter in this Article referred to as "long-term large-scale construction"), the business operator may treat the part of the subject matter of that long-term large-scale construction that pertains to the amount of revenue or amount of profit calculated by the method of the construction progress criteria prescribed in those provisions as having been the subject of a transfer, etc. of assets in the taxable period that includes December 31 of each year in which that amount of revenue was included in gross revenue under those provisions, or in the taxable period that includes the last day of each business year in which that amount of profit was included in the amount of gross profits under those provisions.

Where a business operator makes a transfer, etc. of assets under a contract for undertaking construction work prescribed in Article 66, paragraph (2) of the Income Tax Act or Article 63, paragraph (2) of the Corporation Tax Act (hereinafter in this Article referred to as "construction work"), if, in order to be subject to the application of those provisions, that business operator accounts for the amount of consideration for that construction work by the method of the construction progress criteria prescribed in those provisions, the business operator may treat the part of the subject matter of that construction work that pertains to the amount of revenue or amount of profit accounted for by that method as having been the subject of a transfer, etc. of assets in the taxable period that includes December 31 of each year in which that amount of revenue was included in gross revenue under those provisions, or in the taxable period that includes the last day of each business year in which that amount of profit was included in the amount of gross profits under those provisions; provided, however, that where the case prescribed in the proviso to Article 66, paragraph (2) of the Income Tax Act or the proviso to Article 63, paragraph (2) of the Corporation Tax Act comes to apply, this does not apply to the taxable periods on or after the taxable period that includes December 31 of the year in which the accounting was not done as prescribed in the proviso to Article 66, paragraph (2) of the Income Tax Act, or the taxable periods on or after the taxable period that includes the last day of the business year pertaining to the settlement of accounts for which the accounting was not done as prescribed in the proviso to Article 63, paragraph (2) of the Corporation Tax Act.

Where a business operator that has become subject to the application of paragraph (1) or the main clause of the preceding paragraph has delivered the subject matter of the long-term large-scale construction under paragraph (1) or the construction work under the preceding paragraph, for the part of the transfer, etc. of assets pertaining to that long-term large-scale construction or construction work that was deemed under those provisions to have been made in each taxable period from the taxable period that includes the start date to the taxable period immediately preceding the taxable period that includes the day of that delivery, the total amount of consideration pertaining to that part is deducted from the amount of consideration pertaining to that long-term large-scale construction or construction work, deeming that there was no transfer, etc. of assets in the taxable period that includes that day.

A business operator that intends to be subject to the application of the preceding three paragraphs is to make a note to that effect on the return under Article 45, paragraph (1).

In addition to what is provided for in the preceding paragraph, special provisions on the time of transfers, etc. of assets pertaining to long-term large-scale construction or construction work in the case where an individual business operator to which paragraph (1) or (2) applies has died, where a corporation to which those provisions apply has ceased to exist through a merger, or where a corporation to which those provisions apply has caused a successor corporation in a company split to succeed, through a corporate split, to the business pertaining to long-term large-scale construction or construction work, and other matters necessary for the application of paragraphs (1) through (3), are specified by Cabinet Order.

For an individual business operator that is subject to the application of Article 67, paragraph (1) or (2) (Periods to Which Revenue and Expenses of Small Enterprises and Similar Businesses Are Attributed) of the Income Tax Act, the time of its transfers, etc. of assets and taxable purchases may be deemed to be the day on which the amount of consideration for the transfer, etc. of assets was received and the day on which the amount of expenses for the taxable purchase was paid.

A business operator that intends to be subject to the application of the preceding paragraph is to make a note to that effect on the return under Article 45, paragraph (1).

In addition to what is provided for in the preceding paragraph, special provisions on the time of transfers, etc. of assets and taxable purchases in the case where an individual business operator to which paragraph (1) applies ceases to be subject to that application, and other matters necessary for the application of that paragraph, are specified by Cabinet Order.

In this Act, "taxable period" means the period specified in each of the following items in accordance with the category of business operator listed in that item.

an individual business operator (excluding an individual business operator listed in item (iii) or item (iii)-2): the period from January 1 to December 31;

a corporation (excluding a corporation listed in item (iv) or item (iv)-2): the business year;

an individual business operator that has filed, with the district director having jurisdiction over its place for tax payment, a written notification to the effect of shortening the period specified in item (i) to periods of every three months, or of changing the periods specified in the following item to periods of every three months: each of the periods from January 1 to March 31, from April 1 to June 30, from July 1 to September 30, and from October 1 to December 31;

an individual business operator that has filed, with the district director having jurisdiction over its place for tax payment, a written notification to the effect of shortening the period specified in item (i) to periods of every month, or of changing the periods specified in the preceding item to periods of every month: each of the periods obtained by dividing the time on or after January 1 into periods of one month each;

a corporation whose business year exceeds three months and that has filed, with the district director having jurisdiction over its place for tax payment, a written notification to the effect of shortening the period specified in item (ii) to periods of every three months, or of changing the periods specified in the following item to periods of every three months: each of the periods obtained by dividing the business year into periods of three months each from the day on which it begins (or, where a period of less than three months remains at the end, that period of less than three months);

a corporation whose business year exceeds one month and that has filed, with the district director having jurisdiction over its place for tax payment, a written notification to the effect of shortening the period specified in item (ii) to periods of every month, or of changing the periods specified in the preceding item to periods of every month: each of the periods obtained by dividing the business year into periods of one month each from the day on which it begins (or, where a period of less than one month remains at the end, that period of less than one month).

The notification under the provisions of items (iii) through (iv)-2 of the preceding paragraph takes effect on or after the first day of the period following the period specified in those provisions in which falls the day on which the written notification under those provisions was filed (hereinafter in this paragraph referred to as the "filing date") (or, where the period in which the filing date falls is the period in which falls the day on which the business was commenced or any other period specified by Cabinet Order, that period). In this case, the period specified in each of the following items in accordance with the category of cases listed in that item is deemed to be a single taxable period.

if an individual business operator to whom the provisions of item (iii) or item (iii)-2 of the preceding paragraph have not been applied files a written notification under those provisions: the period from January 1 of the year in which the filing date falls to the day preceding the day on which the notification takes effect;

if a corporation to which the provisions of item (iv) or item (iv)-2 of the preceding paragraph have not been applied files a written notification under those provisions: the period from the first day of the business year in which the filing date falls to the day preceding the day on which the notification takes effect;

if an individual business operator to whom the provisions of item (iii) of the preceding paragraph have been applied files a written notification under the provisions of item (iii)-2 of that paragraph: the period from the first day of the period specified in item (iii) of that paragraph in which the filing date falls to the day preceding the day on which the notification takes effect;

if a corporation to which the provisions of item (iv) of the preceding paragraph have been applied files a written notification under the provisions of item (iv)-2 of that paragraph: the period from the first day of the period specified in item (iv) of that paragraph in which the filing date falls to the day preceding the day on which the notification takes effect.

A business operator that has filed a written notification under the provisions of items (iii) through (iv)-2 of paragraph (1) must, when it intends to cease to be subject to the application of those provisions or when it has discontinued its business, file a written notification to that effect with the district director having jurisdiction over its place for tax payment.

When a written notification under the preceding paragraph has been filed, the notification under the provisions of items (iii) through (iv)-2 of paragraph (1) ceases to be effective on and after the day following the last day of the taxable period in which falls the day on which that filing was made. In this case, the period specified in each of the following items in accordance with the category of cases listed in that item is deemed to be a single taxable period.

if an individual business operator that has filed a written notification under the provisions of item (iii) of paragraph (1) files a written notification under the preceding paragraph during the period from January 1 to September 30 of that year, or if an individual business operator that has filed a written notification under the provisions of item (iii)-2 of paragraph (1) files a written notification under the preceding paragraph during the period from January 1 to November 30 of that year: the period from that following day to December 31 of the year in which falls the day on which that filing was made;

if a corporation that has filed a written notification under the provisions of item (iv) of paragraph (1) files a written notification under the preceding paragraph during the period from the first day of its business year to the last day of the period immediately preceding the last of the periods into which the business year is divided by every three months, or if a corporation that has filed a written notification under the provisions of item (iv)-2 of paragraph (1) files a written notification under the preceding paragraph during the period from the first day of its business year to the last day of the period immediately preceding the last of the periods into which the business year is divided by every month: the period from that following day to the last day of the business year in which falls the day on which that filing was made.

A business operator that has filed a written notification under the provisions of items (iii) through (iv)-2 of paragraph (1) may not, except where it has discontinued its business, file a written notification under those provisions (limited to one relating to a change) or a written notification under paragraph (3), except on or after the first day of the period specified in those provisions in which falls the day on which two years have elapsed from the day on which the notification under those provisions takes effect (or, in the case where a business operator that has filed a written notification under item (iii) or item (iv) of paragraph (1) intends to become subject to the application of item (iii)-2 or item (iv)-2 of paragraph (1), or in any other case specified by Cabinet Order, the day specified by Cabinet Order).

The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by an individual business operator is the place specified in each of the following items in accordance with which of the cases listed in that item the individual business operator falls under.

if the taxpayer is domiciled in Japan: the place of domicile;

if the taxpayer is not domiciled in Japan but has a residence there: the place of residence;

if the individual business operator has neither a domicile nor a residence in Japan but has in Japan an office, place of business, or other similar place relating to the business it conducts (hereinafter in this item, in paragraph (2) of the following Article, and in Article 22, item (ii) referred to as an "office or similar place"): the location of that office or similar place (or, where there are two or more such offices or similar places, the location of the principal one);

in a case other than those listed in the preceding three items: the place specified by Cabinet Order.

The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by an individual business operator who has a residence in Japan in addition to a domicile and who is subject to the application of Article 16, paragraph (1) (Special Provisions on the Locality for Paying Over Taxes) of the Income Tax Act (excluding a person who has been designated a place for tax payment under Article 23, paragraph (1)) is, notwithstanding the provisions of item (i) of the preceding Article, the place of residence in lieu of the place of domicile.

The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by an individual business operator who has a domicile or residence in Japan and also has an office or similar place at a location other than the place of domicile or the place of residence, and who is subject to the application of Article 16, paragraph (2) of the Income Tax Act (excluding a person who has been designated a place for tax payment under Article 23, paragraph (1)) is, notwithstanding the provisions of item (i) or item (ii) of the preceding Article, the location of that office or similar place (or, where there are two or more such offices or similar places, the location of the principal one).

Where an individual business operator dies, the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by the person who died is the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by that person at the time of death, irrespective of the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by that person's heirs.

The place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases by a corporation is the place specified in each of the following items in accordance with which of the cases listed in that item the corporation falls under.

if the corporation has its head office or principal office in Japan (referred to as a "domestic corporation" in the following item): the location of that head office or principal office;

if the corporation is a corporation other than a domestic corporation that has an office or similar place in Japan: the location of that office or similar place (or, where there are two or more such offices or similar places, the location of the principal one);

in a case other than those listed in the preceding two items: the place specified by Cabinet Order.

If the place for tax payment under the provisions of the preceding three Articles is found to be inappropriate as the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases, in light of the status of the transfer, etc. of assets and specified purchases conducted by an individual business operator or a corporation, the regional commissioner having jurisdiction over that place for tax payment (or, in the cases specified by Cabinet Order, the Commissioner of the National Tax Agency; the same applies in the following paragraph) may, notwithstanding those provisions, designate the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases.

When the regional commissioner has designated the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases under the preceding paragraph, the regional commissioner notifies the individual business operator or corporation referred to in that paragraph to that effect in writing.

Even if a disposition designating the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases under paragraph (1) of the preceding Article is revoked by a determination on a request for reinvestigation, a ruling on a request for review, or a judgment, the revocation is not to affect the validity of any return, application, claim, notification, or other submission of documents or any payment made with regard to that consumption tax, or of any disposition by the Commissioner of the National Tax Agency, a regional commissioner, or a district director (other than the disposition that was revoked), during the period from the time of the revoked disposition until the time of the revocation, treating the place for tax payment that was the subject of the revocation as the place for tax payment of the business operator to which the disposition related.

If there has been a change in the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases of a corporation (excluding a change in the place for tax payment of consumption tax on the transfer, etc. of assets and specified purchases resulting from a designation under Article 23, paragraph (1)), the corporation must, without delay, notify the district director having jurisdiction over the place for tax payment before the change to that effect in writing.

The place for tax payment of consumption tax on foreign goods taken out of a bonded area is the location of that bonded area.

The tax base for consumption tax on taxable transfers, etc. of assets is the amount of consideration for the taxable transfer, etc. of assets (meaning the amount of all money, anything other than money, rights, or other economic benefits received or to be received as consideration, and not including the amount of consumption tax to be imposed on the taxable transfer, etc. of assets or the amount equivalent to the amount of local consumption tax to be imposed with that amount of consumption tax as its tax base; the same applies hereinafter in this paragraph and paragraph (3)). However, where a corporation transfers an asset to an officer prescribed in Article 4, paragraph (5), item (ii) and the amount of consideration is significantly lower than the value of that asset at the time of the transfer, the amount equivalent to that value is deemed to be the amount of consideration.

The tax base for consumption tax on specified taxable purchases is the amount of consideration paid for the specified taxable purchase (meaning the amount of all money, anything other than money, rights, or other economic benefits paid or to be paid as consideration).

For acts that fall under any of the items of Article 4, paragraph (5), the amount specified in each of the following items in accordance with the category of act listed in that item is deemed to be the amount of consideration.

consumption or use listed in Article 4, paragraph (5), item (i): the amount equivalent to the value of the asset consumed or used, at the time of that consumption or use;

a gift listed in Article 4, paragraph (5), item (ii): the amount equivalent to the value of the asset given, at the time of that gift.

The tax base for consumption tax on taxable goods taken out of a bonded area is the amount obtained by adding, to the price calculated for the taxable goods in accordance with the provisions of Articles 4 through 4-9 (Method of Calculating the Dutiable Value) of the Customs Tariff Act (Act No. 54 of 1910), an amount equivalent to the amount of consumption tax, etc. other than the consumption tax relating to the taking of the taxable goods out of the bonded area (meaning the consumption tax, etc. prescribed in Article 2, item (iii) (Definitions) of the Act on General Rules for National Taxes; excluding the amount equivalent to the amount of accessory tax) and an amount equivalent to the amount of customs duty (excluding the amount equivalent to the amount of accessory tax prescribed in Article 2, paragraph (1), item (iv)-2 of the Customs Act).

In addition to what is provided for in paragraph (3), matters necessary for the details of the calculation of the amount of the tax base prescribed in paragraph (1), paragraph (2), or the preceding paragraph are specified by Cabinet Order.

The rate of consumption tax is the rate specified in each of the following items in accordance with the category listed in that item.

taxable transfers, etc. of assets (excluding taxable transfers, etc. of assets subject to the reduced rate), specified taxable purchases, and taxable goods taken out of a bonded area (excluding taxable goods subject to the reduced rate): 7.8 percent;

taxable transfers, etc. of assets subject to the reduced rate and taxable goods subject to the reduced rate that are taken out of a bonded area: 6.24 percent.

With respect to a taxable purchase that a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes in Japan (excluding one that falls under a specified taxable purchase; the same applies hereinafter in this Article and in Articles 32 through 36) or a specified taxable purchase, or taxable goods that it takes out of a bonded area, there is deducted from the amount of consumption tax set forth in Article 45, paragraph (1), item (ii) (hereinafter in this Chapter referred to as "consumption tax on the tax base amount") for the taxable period that includes the day specified in each of the following items according to the category of case set forth in that item the total of the amount of consumption tax on taxable purchases made in Japan during that taxable period (meaning an amount calculated on the basis of the matters stated in the qualified invoice (meaning a qualified invoice prescribed in Article 57-4, paragraph (1); the same applies in paragraph (9)) or qualified simplified invoice (meaning a qualified simplified invoice prescribed in Article 57-4, paragraph (2); the same applies in paragraph (9)) relating to that taxable purchase, or any other amount calculated as provided by Cabinet Order; the same applies hereinafter in this Chapter), the amount of consumption tax on specified taxable purchases made in Japan during that taxable period (meaning an amount calculated by multiplying the amount of consideration paid for that specified taxable purchase by 7.8 percent; the same applies hereinafter in this Chapter), and the amount of consumption tax imposed or to be imposed on taxable goods relating to the taking out of a bonded area in that taxable period (excluding goods exempted from consumption tax under the provisions of other laws or treaties; the same applies hereinafter in this Chapter) (excluding an amount equivalent to the amount of accessory tax; the same applies in the following paragraph).

in the case where a taxable purchase is made in Japan: the day on which that taxable purchase was made;

in the case where a specified taxable purchase is made in Japan: the day on which that specified taxable purchase was made;

in the case where a return under Article 47, paragraph (1) (excluding the case under paragraph (3) of that Article) or a return under paragraph (2) of that Article has been submitted for taxable goods taken out of a bonded area: the day on which the taxable goods relating to that return (referred to in paragraph (6) as "taxable goods under a general return") were taken;

in the case where a special return has been submitted for taxable goods taken out of a bonded area (including the case where a determination (meaning a determination under Article 25 (Determination) of the Act on General Rules for National Taxes; the same applies hereinafter in this item) has been made with respect to the amount set forth in Article 47, paragraph (1), item (i) or (ii) that is to be stated in that special return; the same applies hereinafter): the day on which that special return was submitted or the day on which notice was received of the determination relating to that return (hereinafter referred to as a "determination on a special return").

In the case referred to in the preceding paragraph, where the taxable sales in the taxable period prescribed in that paragraph exceed 500 million yen, or where the taxable sales ratio in that taxable period is less than 95 percent, the total of the amount of consumption tax on taxable purchases, the amount of consumption tax on specified taxable purchases, and the amount of consumption tax imposed or to be imposed on taxable goods relating to the taking out of a bonded area prescribed in that paragraph, which are deducted under the provisions of that paragraph (hereinafter in this Chapter referred to as the "amount of tax on taxable purchases, etc."), is, notwithstanding the provisions of that paragraph, the amount calculated by the method specified in each of the following items according to the category of case set forth in that item.

in the case where, with respect to taxable purchases and specified taxable purchases made in Japan during that taxable period and taxable goods relating to the taking out of a bonded area prescribed in the preceding paragraph in that taxable period, it is clear which are required solely for taxable transfers, etc. of assets, which are required solely for transfers, etc. of assets other than taxable transfers, etc. of assets (referred to in this item as "other transfers, etc. of assets"), and which are required commonly for taxable transfers, etc. of assets and other transfers, etc. of assets: the method of adding the amount set forth in (b) to the amount set forth in (a):

the total amount of the amount of tax on taxable purchases, etc. relating to taxable purchases, specified taxable purchases and taxable goods required solely for taxable transfers, etc. of assets;

the amount calculated by multiplying the total amount of the amount of tax on taxable purchases, etc. relating to taxable purchases, specified taxable purchases and taxable goods required commonly for taxable transfers, etc. of assets and other transfers, etc. of assets by the taxable sales ratio;

in cases other than the case set forth in the preceding item: the method of calculating by multiplying the total amount of the amount of tax on taxable purchases, etc. in that taxable period by the taxable sales ratio.

In the case set forth in item (i) of the preceding paragraph, where there is a ratio equivalent to the taxable sales ratio prescribed in (b) of that item, which is the basis for calculating the amount set forth in (b) of that item (where that ratio is calculated separately for each different type of business conducted by the business operator or for each different type of selling expenses, general and administrative expenses or other expenses relating to that business, each ratio so calculated separately; the same applies hereinafter in this paragraph) that meets all of the following requirements, then for the taxable periods on or after the taxable period that includes the day on which the business operator received the approval prescribed in item (ii), the amount set forth in (b) of that item is, notwithstanding the provisions of item (i) of the preceding paragraph, the amount calculated using that ratio in place of that taxable sales ratio; provided, however, that this does not apply to taxable periods on or after the taxable period that includes the day on which a written notification stating the intention to discontinue calculating using that ratio is submitted.

that the ratio is reasonably calculated in accordance with the type of business conducted by the business operator or the type of selling expenses, general and administrative expenses or other expenses relating to that business;

that the business operator has received the approval of the district director having jurisdiction over its place for tax payment for calculating the amount set forth in item (i), (b) of the preceding paragraph using that ratio.

A business operator that falls under the case set forth in paragraph (2), item (i) may, notwithstanding the provisions of that paragraph, with respect to taxable purchases and specified taxable purchases made in Japan during that taxable period and taxable goods relating to the taking out of a bonded area prescribed in paragraph (1) in that taxable period, calculate the total amount of the amount of tax on taxable purchases, etc. deducted under the provisions of paragraph (1), in place of the method specified in that item, by the method specified in paragraph (2), item (ii).

In the case referred to in paragraph (2) or the preceding paragraph, a business operator that has decided to calculate by the method specified in paragraph (2), item (ii) may not calculate by the method specified in item (i) of that paragraph unless it is a taxable period after that method has been continuously applied in each taxable period that begins during the period from the first day of the taxable period for which it decided to calculate by that method to the day on which two years have elapsed from that same day.

The amount of consideration paid for a specified taxable purchase prescribed in paragraph (1) means the amount of consideration for the specified taxable purchase (meaning the amount of all money or anything other than money, or rights or other economic benefits, paid or to be paid as consideration); the taxable goods relating to the taking out of a bonded area prescribed in that paragraph means taxable goods under a general return taken out of a bonded area, or taxable goods relating to the submission of a special return or to a determination on a special return; the taxable sales in the taxable period prescribed in paragraph (2) means the remainder after deducting, from the total amount of consideration for taxable transfers, etc. of assets made by the business operator in Japan during that taxable period (meaning the amount of consideration prescribed in Article 28, paragraph (1); the same applies hereinafter in this paragraph), the total of the amounts of tax-exclusive refunds, etc. of consideration for sales in that taxable period (meaning the amount obtained by deducting, from the amount of refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) made during that taxable period, the amount calculated by multiplying the amount of consumption tax relating to the amount of refund, etc. of consideration for sales prescribed in that paragraph by 100/78) (where that taxable period is less than one year, the amount calculated by dividing that remainder by the number of months in that taxable period (calculated according to the calendar, with any fraction of less than one month counted as one month) and multiplying the result by twelve); and the taxable sales ratio prescribed in paragraph (2) means the ratio calculated as provided by Cabinet Order as the proportion that the total amount of consideration for taxable transfers, etc. of assets made by the business operator in Japan during that taxable period accounts for in the total amount of consideration for transfers, etc. of assets (excluding those that fall under specified transfers, etc. of assets) made by the business operator in Japan during that taxable period.

The provisions of paragraph (1) do not apply to the amount of tax on taxable purchases, etc. relating to a taxable purchase, specified taxable purchase or taxable goods for which the business operator does not preserve the books and invoices, etc. relating to the deduction of the amount of tax on taxable purchases, etc. for the taxable period (books only, as to the amount of tax on taxable purchases, etc. in a case specified by Cabinet Order, such as where it is difficult to receive delivery of invoices, etc. or where it relates to a specified taxable purchase); provided, however, that this does not apply where the business operator proves that it was unable to preserve them due to a disaster or other unavoidable circumstances.

The books prescribed in the preceding paragraph means the following books.

where the amount of tax on taxable purchases, etc. relates to a taxable purchase, books in which the following matters are stated:

the name of the counterparty to the taxable purchase;

the date on which the taxable purchase was made;

the details of the asset or services relating to the taxable purchase (where the taxable purchase relates to a taxable transfer, etc. of assets subject to the reduced rate received from another person, the details of the asset and the fact that it relates to a taxable transfer, etc. of assets subject to the reduced rate);

the amount of consideration paid for the taxable purchase (meaning the amount of all money or anything other than money, or rights or other economic benefits, paid or to be paid as consideration for that taxable purchase, and, where there is an amount equivalent to the amount of consumption tax to be imposed on the business operator that transfers or lends the asset relating to that taxable purchase or provides the services relating to that taxable purchase and the amount of local consumption tax to be imposed with that amount of consumption tax as its tax base (excluding the amount equivalent to the amount of accessory tax on these tax amounts), including that equivalent amount; the same applies in Article 32, paragraph (1));

where the amount of tax on taxable purchases, etc. relates to a specified taxable purchase, books in which the following matters are stated:

the name of the counterparty to the specified taxable purchase;

the date on which the specified taxable purchase was made;

the details of the specified taxable purchase;

the amount of consideration paid for the specified taxable purchase prescribed in paragraph (1);

the fact that it relates to a specified taxable purchase;

where the amount of tax on taxable purchases, etc. relates to taxable goods relating to the taking out of a bonded area prescribed in paragraph (1), books in which the following matters are stated:

the date on which the taxable goods were taken out of a bonded area (where a special return has been submitted for the taxable goods, the date on which they were taken out of the bonded area and the date on which the special return was submitted or the date on which notice was received of the determination on a special return);

the details of the taxable goods;

the amount of consumption tax and the amount of local consumption tax relating to the taking out of the taxable goods (excluding the amount equivalent to the amount of accessory tax on these tax amounts; the same applies in item (v) of the following paragraph) or the total of these amounts.

The invoice, etc. prescribed in paragraph (7) means the following documents and electronic or magnetic records (meaning an electronic or magnetic record 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 in item (ii)).

a qualified invoice or qualified simplified invoice that another business operator (limited to a qualified invoice issuer; the same applies in the following item and item (iii)) that conducts a taxable transfer, etc. of assets with respect to the business operator (excluding a transfer, etc. of assets for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1), or any other Act or treaty; the same applies in the following item and item (iii)) delivers to that business operator for that taxable transfer, etc. of assets;

an electronic or magnetic record that another business operator that conducts a taxable transfer, etc. of assets with respect to the business operator provides, under the provisions of Article 57-4, paragraph (5), in place of the qualified invoice or qualified simplified invoice that it should deliver to that business operator for that taxable transfer, etc. of assets;

a detailed statement of purchases, statement of purchase calculations, or other similar document that a business operator prepares for a taxable purchase it has made (limited to one that falls under a taxable transfer, etc. of assets conducted by another business operator, and excluding, among those taxable transfers, etc. of assets, any to which the proviso to Article 57-4, paragraph (1) or the main clause of Article 57-6, paragraph (1) applies), in which the name of the counterparty to the taxable purchase and other matters specified by Cabinet Order are stated (limited to a document in which the matters stated have been confirmed by the counterparty to the taxable purchase);

an invoice, delivery slip, or other similar document in which matters specified by Cabinet Order are stated, that a business operator receives, from a person who conducts the business of intermediation or agency, for a taxable purchase it has made (limited to a taxable purchase specified by Cabinet Order as one made through a person who conducts the business of intermediation or agency, such as one made by auction or tender at a wholesale market);

a document specified by Cabinet Order, such as a document certifying that import permission (meaning import permission prescribed in Article 67 (Permission for Export or Import) of the Customs Act) has been granted for taxable goods, that a business operator that takes the taxable goods out of a bonded area receives from the director-general of a customs house, in which the following matters are stated:

the director-general of the customs house having jurisdiction over the place for tax payment;

the date on which it became possible to take the taxable goods out of a bonded area (where a special return has been submitted for the taxable goods, the date on which it became possible to take them out of the bonded area and the date on which the special return was submitted or the date on which notice was received of the determination on a special return);

the details of the taxable goods;

the amount of the tax base for consumption tax on the taxable goods, and the amount of consumption tax and the amount of local consumption tax relating to the taking out of the taxable goods;

the name of the business operator that receives the document.

The provisions of paragraph (1) do not apply to the amount of tax on taxable purchases, etc. relating to a building (limited to one that falls under a high-value specified asset prescribed in Article 12-4, paragraph (1) or an adjustment-target self-constructed high-value asset prescribed in paragraph (2) of that Article; referred to as a "residential rental building" in Article 35-2), other than a building (including its accessory facilities; the same applies hereinafter in this paragraph) that is clearly not to be used for the lending of housing listed in Appended Table 2, item (xiii) that the business operator conducts in Japan.

Where a business operator does not preserve an identity verification document (meaning a copy of a resident record or any other document specified by Ministry of Finance Order) of the counterparty to a taxable purchase (limited to a taxable purchase for which the asset is gold or platinum bullion), the provisions of paragraph (1) do not apply to the amount of consumption tax on the taxable purchase for which there is no such preservation; provided, however, that this does not apply where the business operator proves that it was unable to preserve the document due to a disaster or other unavoidable circumstances.

The provisions of paragraph (1) do not apply to the amount of consumption tax on a taxable purchase where, at the time of the taxable purchase, the asset relating to the taxable purchase is taxable goods taken out of a bonded area without payment of the consumption tax that should have been paid, or goods for which consumption tax was exempted under the provisions of Article 8, paragraph (1) (limited to the case where the business operator making the taxable purchase knew that the consumption tax had not been paid or that it was exempted).

Special provisions on the matters to be stated in the books prescribed in paragraph (7), matters concerning the preservation of those books and the invoices, etc. prescribed in that paragraph, and other matters necessary for the application of the provisions of the preceding paragraphs are specified by Cabinet Order.

Where a business operator conducts in Japan, among transfers, etc. of assets for which consumption tax is not to be imposed under the provisions of Article 6, paragraph (1) (hereinafter in this paragraph referred to as "non-taxable transfers, etc. of assets"), one that falls under the transfers, etc. of assets listed in the items of Article 7, paragraph (1) (hereinafter in this paragraph and the following paragraph referred to as "export transactions, etc."), and it has been proved, as provided by Ministry of Finance Order, that the non-taxable transfer, etc. of assets falls under an export transaction, etc., the provisions of the preceding Article apply, with the non-taxable transfer, etc. of assets for which that proof has been made deemed to fall under an export transaction, etc. relating to a taxable transfer, etc. of assets.

Where a business operator exports an asset for a transfer, etc. of assets outside Japan or for its own use, and it has been proved, as provided by Ministry of Finance Order, that the asset has been exported, the provisions of the preceding Article apply, with the export of the asset for which that proof has been made deemed to fall under an export transaction, etc. relating to a taxable transfer, etc. of assets.

The method of calculating the taxable sales ratio prescribed in paragraph (2) of the preceding Article in the cases under the preceding two paragraphs, and other matters necessary for the application of the provisions of that Article, are specified by Cabinet Order.

Where a business operator, by returning goods or receiving a price reduction or rebate with respect to a taxable purchase that it made in Japan (limited to one to which the provisions of Article 30, paragraph (1) have been applied; the same applies hereinafter in this Article) or a specified taxable purchase, receives a refund of all or part of the amount of consideration paid for the taxable purchase or the amount of consideration paid for the specified taxable purchase (meaning the amount of consideration paid for a specified taxable purchase prescribed in that paragraph; the same applies hereinafter in this paragraph), or a reduction of all or part of the amount of accounts payable or other debts relating to the amount of consideration paid for the taxable purchase or the amount of consideration paid for the specified taxable purchase (hereinafter in this Article referred to as a "refund, etc. of consideration for purchases"), the provisions of Article 30, paragraph (1) (including the provisions of paragraph (2) of that Article, where those provisions apply) apply with the amount specified in each of the following items in accordance with the category of cases listed in that item deemed to be the total amount of tax on taxable purchases, etc. for the taxable period that includes the day on which the refund, etc. of consideration for purchases was received.

where paragraph (2) of Article 30 does not apply to the calculation of the total amount of tax on taxable purchases, etc. deducted under the provisions of paragraph (1) of that Article for that taxable period of the business operator (hereinafter in this Chapter referred to as "consumption tax on purchases"): the remainder after deducting, from the total amount of tax on taxable purchases, etc. for that taxable period, the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for purchases was received in that taxable period (meaning the amount calculated by multiplying the amount refunded of the amount of consideration paid for the taxable purchase, or the amount of the debt reduced, by 7.8/110 (or, where the refund, etc. of consideration for purchases relates to a taxable transfer, etc. of assets subject to the reduced rate received from another person, 6.24/108), and the amount calculated by multiplying the amount refunded of the amount of consideration paid for the specified taxable purchase, or the amount of the debt reduced, by 7.8 percent; the same applies hereinafter in this paragraph and the following paragraph);

where the business operator calculates the consumption tax on purchases for that taxable period by the method specified in Article 30, paragraph (2), item (i): the amount obtained by adding the amount set forth in (b) to the amount set forth in (a);

the remainder after deducting, from the amount set forth in Article 30, paragraph (2), item (i), (a), the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for purchases was received in that taxable period for taxable purchases required solely for taxable transfers, etc. of assets;

the remainder after deducting, from the amount set forth in Article 30, paragraph (2), item (i), (b), the amount calculated by multiplying the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for purchases was received in that taxable period for taxable purchases required commonly for taxable transfer, etc. of assets and other transfer, etc. of assets (meaning other transfer, etc. of assets prescribed in that item; the same applies in paragraph (4), item (ii), (b)) by the taxable sales ratio prescribed in Article 30, paragraph (2), item (i), (b) (where the main clause of paragraph (3) of that Article applies, the amount calculated using the ratio relating to the approval prescribed in that paragraph; the same applies in paragraph (4), item (ii), (b)).

where the business operator calculates the consumption tax on purchases for that taxable period by the method specified in Article 30, paragraph (2), item (ii): the remainder after deducting, from the amount calculated by multiplying the total amount of tax on taxable purchases, etc. prescribed in that item by the taxable sales ratio prescribed in that item (hereinafter in this item and paragraph (4), item (iii) referred to as the "taxable sales ratio"), the amount calculated by multiplying the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for purchases was received in that taxable period by the taxable sales ratio.

Where, after deducting under the provisions of the preceding paragraph the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for purchases was received from the total amount of tax on taxable purchases, etc. for the taxable period that includes the day on which that refund, etc. of consideration for purchases was received, there remains an amount that cannot be fully deducted, that amount is deemed to be consumption tax on a taxable transfer, etc. of assets and, as provided by Cabinet Order, is added to the amount of consumption tax on the tax base amount for that taxable period.

Where an heir who has succeeded to the business of a decedent through inheritance receives a refund, etc. of consideration for purchases with respect to a taxable purchase or specified taxable purchase made by the decedent, the provisions of the preceding two paragraphs apply as if the heir had received a refund, etc. of consideration for purchases with respect to a taxable purchase or specified taxable purchase made by the heir.

Where a business operator receives, under the provisions of another Act, a refund of all or part of the amount of consumption tax relating to taxable goods taken out of a bonded area (meaning taxable goods taken out of a bonded area prescribed in Article 30, paragraph (1); the same applies hereinafter in this Article and Article 36), the provisions of Article 30, paragraph (1) (including the provisions of paragraph (2) of that Article, where those provisions apply) apply with the amount specified in each of the following items in accordance with the category of cases listed in that item deemed to be the total amount of tax on taxable purchases, etc. for the taxable period that includes the day on which the refund is received.

where paragraph (2) of Article 30 does not apply to the calculation of the consumption tax on purchases for that taxable period of the business operator: the remainder after deducting, from the total amount of tax on taxable purchases, etc. for that taxable period (where item (i) of paragraph (1) applies in that taxable period, the remainder specified in that item), the total amount of consumption tax for which a refund is received in that taxable period for taxable goods taken out of a bonded area (excluding the amount equivalent to the amount of accessory tax; the same applies hereinafter in this Article);

where the business operator calculates the consumption tax on purchases for that taxable period by the method specified in Article 30, paragraph (2), item (i): the amount obtained by adding the amount set forth in (b) to the amount set forth in (a);

the remainder after deducting, from the amount set forth in Article 30, paragraph (2), item (i), (a) (where item (ii), (a) of paragraph (1) applies in that taxable period, the remainder set forth in (a) of that item), the total amount of consumption tax for which a refund is received in that taxable period for taxable goods required solely for taxable transfers, etc. of assets;

the remainder after deducting, from the amount set forth in Article 30, paragraph (2), item (i), (b) (where item (ii), (b) of paragraph (1) applies in that taxable period, the remainder set forth in (b) of that item), the amount calculated by multiplying the total amount of consumption tax for which a refund is received in that taxable period for taxable goods required commonly for taxable transfers, etc. of assets and other transfers, etc. of assets by the taxable sales ratio prescribed in Article 30, paragraph (2), item (i), (b).

where the business operator calculates the consumption tax on purchases for that taxable period by the method specified in Article 30, paragraph (2), item (ii): the remainder after deducting, from the amount calculated by multiplying the total amount of tax on taxable purchases, etc. prescribed in that item by the taxable sales ratio (where item (iii) of paragraph (1) applies in that taxable period, the remainder specified in that item), the amount calculated by multiplying the total amount of consumption tax for which a refund is received in that taxable period for taxable goods by that taxable sales ratio.

Where, after deducting under the provisions of the preceding paragraph the total amount of consumption tax for which a refund is received from the total amount of tax on taxable purchases, etc. for the taxable period that includes the day on which the refund is received, there remains an amount that cannot be fully deducted, that amount is deemed to be consumption tax on a taxable transfer, etc. of assets and, as provided by Cabinet Order, is added to the amount of consumption tax on the tax base amount for that taxable period.

Where an heir who has succeeded to the business of a decedent through inheritance receives, under the provisions of another Act, a refund of all or part of the amount of consumption tax relating to taxable goods taken out of a bonded area by the decedent, the provisions of the preceding two paragraphs apply as if the heir had received a refund of all or part of the amount of consumption tax relating to taxable goods taken out of a bonded area by the heir.

The provisions of paragraph (3) apply mutatis mutandis to the case where a merging corporation that has succeeded to a business through a merger receives a refund, etc. of consideration for purchases with respect to a taxable purchase or specified taxable purchase made by the merged corporation, or the case where a successor corporation in a company split that has succeeded to a business through a company split receives a refund, etc. of consideration for purchases with respect to a taxable purchase or specified taxable purchase made by the splitting corporation, and the provisions of the preceding paragraph apply mutatis mutandis to the case where a merging corporation that has succeeded to a business through a merger receives a refund of the amount of consumption tax relating to taxable goods taken out of a bonded area by the merged corporation, or the case where a successor corporation in a company split that has succeeded to a business through a company split receives a refund of the amount of consumption tax relating to taxable goods taken out of a bonded area by the splitting corporation, respectively.

Matters necessary for the details of the calculation of the amount of consumption tax relating to the amount for which a refund, etc. of consideration for purchases was received, as prescribed in paragraph (1), item (i), are specified by Cabinet Order.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes a taxable purchase or specified taxable purchase of an adjustment-target fixed asset in Japan, or takes taxable goods that fall under an adjustment-target fixed asset out of a bonded area, and calculates the consumption tax on purchases by the proportional allocation method with respect to the amount of tax on taxable purchases, etc. relating to that taxable purchase or specified taxable purchase or those taxable goods (including the case where the entire amount of tax on taxable purchases, etc. relating to that adjustment-target fixed asset has been deducted under the provisions of Article 30, paragraph (1)), and that business operator (including an heir who has succeeded to the business of that business operator relating to that adjustment-target fixed asset through inheritance, a merging corporation that has succeeded to that business through a merger, and a successor corporation in a company split that has succeeded to the business relating to that adjustment-target fixed asset through a company split, but excluding, among these persons, those exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1); the same applies hereinafter in this paragraph) holds that adjustment-target fixed asset on the last day of the third-year taxable period, and the aggregate taxable sales ratio for the third-year taxable period has significantly increased, in a case specified by Cabinet Order, relative to the taxable sales ratio prescribed in Article 30, paragraph (2) for the taxable period of purchase, etc. (meaning the taxable period that includes the day of the taxable purchase or the day of the specified taxable purchase of that adjustment-target fixed asset, or the day on which it was taken out of a bonded area (where a special return has been submitted for taxable goods that fall under that adjustment-target fixed asset, the day on which the special return was submitted or the day on which notice was received of the determination on a special return; the same applies in paragraph (1) of the following Article and in Article 35); the same applies hereinafter in this paragraph and the following paragraph) (where the provisions of the main clause of paragraph (3) of that Article were applied in the taxable period of purchase, etc., the ratio relating to the approval prescribed in that paragraph; the same applies hereinafter in this paragraph and the following paragraph), the amount of consumption tax equivalent to the amount obtained by deducting the total set forth in item (i) from the total set forth in item (ii) is to be added to the consumption tax on purchases for that third-year taxable period of that person; and where that aggregate taxable sales ratio has significantly decreased relative to that taxable sales ratio, in a case specified by Cabinet Order, the amount of consumption tax equivalent to the amount obtained by deducting the total set forth in item (ii) from the total set forth in item (i) is to be deducted from the consumption tax on purchases for that third-year taxable period of that person. In this case, the amount after that addition or after that deduction is deemed to be the consumption tax on purchases for that taxable period.

the total amount of consumption tax calculated by multiplying the amount of consumption tax on the taxable purchase or the amount of consumption tax on the specified taxable purchase of that adjustment-target fixed asset held on the last day of the third-year taxable period (hereinafter in this item referred to as the "held adjustment-target fixed asset"), or the amount of consumption tax on taxable goods that are a held adjustment-target fixed asset (excluding the amount equivalent to the amount of accessory tax) (hereinafter in this item and the following item referred to as the "base tax amount for adjustment"), by the taxable sales ratio prescribed in Article 30, paragraph (2) for the taxable period of purchase, etc. (or, where the entire amount of tax on taxable purchases, etc. relating to that held adjustment-target fixed asset was deducted under paragraph (1) of that Article in the taxable period of purchase, etc., the total of the base tax amounts for adjustment);

the total amount of consumption tax calculated by multiplying the base tax amount for adjustment by the aggregate taxable sales ratio.

The proportional allocation method prescribed in the preceding paragraph means the method of calculating by multiplying by the taxable sales ratio prescribed in Article 30, paragraph (2), item (i), (b) (hereinafter in this paragraph referred to as the "taxable sales ratio"), or the method specified in paragraph (2), item (ii) of that Article; the third-year taxable period prescribed in the preceding paragraph means the taxable period that includes the day on which three years have elapsed from the first day of the taxable period of purchase, etc.; and the aggregate taxable sales ratio prescribed in that paragraph means the taxable sales ratio obtained by aggregating, as provided by Cabinet Order, the taxable sales ratios that should apply in each taxable period from the taxable period of purchase, etc. to the third-year taxable period.

Where, under the provisions of paragraph (1), the amount of consumption tax equivalent to the amount obtained by deducting the total set forth in item (ii) of that paragraph from the total set forth in item (i) of that paragraph is deducted from the consumption tax on purchases for that third-year taxable period and there is an amount that cannot be fully deducted, that amount is deemed to be consumption tax on a taxable transfer, etc. of assets and is added to the amount of consumption tax on the tax base amount for that third-year taxable period.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes a taxable purchase or specified taxable purchase of an adjustment-target fixed asset in Japan, or takes taxable goods that fall under an adjustment-target fixed asset out of a bonded area, and calculates the consumption tax on purchases, with respect to the amount of tax on taxable purchases, etc. relating to that taxable purchase or specified taxable purchase or those taxable goods (hereinafter in this paragraph referred to as the "tax amount for adjustment"), by the method specified in Article 30, paragraph (2), item (i), on the basis that it is required solely for the taxable transfers, etc. of assets prescribed in that item, and that business operator (including an heir who has succeeded to the business of that business operator relating to that adjustment-target fixed asset through inheritance, a merging corporation that has succeeded to that business through a merger, and a successor corporation in a company split that has succeeded to the business relating to that adjustment-target fixed asset through a company split, but excluding, among these persons, those exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) uses that adjustment-target fixed asset, within three years from the day of that taxable purchase, the day of that specified taxable purchase, or the day of that taking out of the bonded area, for the business relating to the other transfers, etc. of assets prescribed in that item, the amount of consumption tax specified in each of the following items in accordance with which of the periods listed in that item the day on which it was so used falls into is to be deducted from the consumption tax on purchases for the taxable period that includes that day. In this case, the amount after that deduction is deemed to be the consumption tax on purchases for that taxable period.

the period from the day of the taxable purchase or the day of the specified taxable purchase of that adjustment-target fixed asset, or the day of the taking out of a bonded area of taxable goods that fall under that adjustment-target fixed asset, to the day on which one year has elapsed from those days: the amount of consumption tax equivalent to the tax amount for adjustment;

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to two-thirds of the tax amount for adjustment;

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to one-third of the tax amount for adjustment.

Where, after deducting under the provisions of the preceding paragraph the amount of consumption tax specified in the items of that paragraph from the consumption tax on purchases for the taxable period that includes the day on which the asset was used for the business prescribed in that paragraph, there is an amount that cannot be fully deducted, that amount is deemed to be consumption tax on a taxable transfer, etc. of assets and is added to the amount of consumption tax on the tax base amount for the taxable period that includes the day on which the asset was used for that business.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) makes a taxable purchase or specified taxable purchase of an adjustment-target fixed asset in Japan, or takes taxable goods that fall under an adjustment-target fixed asset out of a bonded area, and treats the consumption tax on purchases as nil, with respect to the amount of tax on taxable purchases, etc. relating to that taxable purchase or specified taxable purchase or those taxable goods (hereinafter in this Article referred to as the "tax amount for adjustment"), by the method specified in Article 30, paragraph (2), item (i), on the basis that it is required solely for the other transfers, etc. of assets prescribed in that item, and that business operator (including an heir who has succeeded to the business of that business operator relating to that adjustment-target fixed asset through inheritance, a merging corporation that has succeeded to that business through a merger, and a successor corporation in a company split that has succeeded to the business relating to that adjustment-target fixed asset through a company split, but excluding, among these persons, those exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) uses that adjustment-target fixed asset, within three years from the day of that taxable purchase, the day of that specified taxable purchase, or the day of that taking out of the bonded area, for the business relating to the taxable transfers, etc. of assets prescribed in that item, the amount of consumption tax specified in each of the following items in accordance with which of the periods listed in that item the day on which it was so used falls into is to be added to the consumption tax on purchases for the taxable period that includes that day. In this case, the amount after that addition is deemed to be the consumption tax on purchases for that taxable period.

the period from the day of the taxable purchase or the day of the specified taxable purchase of that adjustment-target fixed asset, or the day of the taking out of a bonded area of taxable goods that fall under that adjustment-target fixed asset, to the day on which one year has elapsed from those days: the amount of consumption tax equivalent to the tax amount for adjustment;

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to two-thirds of the tax amount for adjustment;

the period from the day following the last day of the period listed in the preceding item to the day on which one year has elapsed from that day: the amount of consumption tax equivalent to one-third of the tax amount for adjustment.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) has had the provisions of Article 30, paragraph (10) applied with respect to the amount of tax on taxable purchases, etc. relating to a residential rental building, and that business operator (including an heir who has succeeded to the business of that business operator relating to that residential rental building through inheritance, a merging corporation that has succeeded to that business through a merger, and a successor corporation in a company split that has succeeded to the business relating to that residential rental building through a company split, but excluding, among these persons, those exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1); the same applies hereinafter in this paragraph) holds that residential rental building on the last day of the third-year taxable period and has put all or part of that residential rental building to use for lending other than the lending of housing listed in Appended Table 2, item (xiii) (referred to as "taxable rental use" in paragraph (3)) during the period from the day of purchase, etc. of that residential rental building to the last day of the third-year taxable period (referred to as the "adjustment period" in the following paragraph and paragraph (3)), the amount of consumption tax equivalent to the amount calculated by multiplying the amount of tax on taxable purchases, etc. relating to the residential rental building so held by the taxable rental ratio is to be added to the consumption tax on purchases for that third-year taxable period of that business operator. In this case, the amount after that addition is deemed to be the consumption tax on purchases for that taxable period.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) has had the provisions of Article 30, paragraph (10) applied with respect to the amount of tax on taxable purchases, etc. relating to a residential rental building, and that business operator (including an heir who has succeeded to the business of that business operator relating to that residential rental building through inheritance, a merging corporation that has succeeded to that business through a merger, and a successor corporation in a company split that has succeeded to the business relating to that residential rental building through a company split, but excluding, among these persons, those exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1); the same applies hereinafter in this paragraph) transfers all or part of that residential rental building to another person during the adjustment period (including the case where the residential rental building is deemed to be a transfer of an asset under the provisions of Article 4, paragraph (5)), the amount of consumption tax equivalent to the amount calculated by multiplying the amount of tax on taxable purchases, etc. relating to the residential rental building so transferred by the taxable transfer ratio is to be added to the consumption tax on purchases for the taxable period in which the business operator made the transfer. In this case, the amount after that addition is deemed to be the consumption tax on purchases for that taxable period.

The third-year taxable period prescribed in paragraph (1) means the taxable period that includes the day on which three years have elapsed from the first day of the taxable period that includes the day of purchase, etc. of the residential rental building prescribed in that paragraph; the day of purchase, etc. of the residential rental building prescribed in paragraph (1) means the day of the taxable purchase of that residential rental building (or, where that residential rental building is a self-constructed high-value specified asset prescribed in Article 12-4, paragraph (1), the day on which the construction, etc. prescribed in that paragraph of that self-constructed high-value specified asset was completed); the taxable rental ratio prescribed in paragraph (1) means the ratio calculated, as provided by Cabinet Order, as the proportion that the total amount of consideration for the lending of that residential rental building conducted by the business operator during the adjustment period (limited to lending put to taxable rental use) bears to the total amount of consideration for the lending of that residential rental building conducted by the business operator during the adjustment period (meaning the amount of consideration prescribed in Article 28, paragraph (1); the same applies hereinafter in this paragraph); and the taxable transfer ratio prescribed in the preceding paragraph means the ratio calculated, as provided by Cabinet Order, as the proportion that the total of the amount of consideration for the lending of that residential rental building conducted by the business operator during the taxable transfer adjustment period (limited to lending put to taxable rental use) and the total amount of consideration for the transfer of that residential rental building conducted by the business operator bears to the total of the amount of consideration for the lending of that residential rental building conducted by the business operator during the period from the day of purchase, etc. of the residential rental building prescribed in paragraph (1) to the day on which the business operator transferred that residential rental building to another person (hereinafter in this paragraph referred to as the "taxable transfer adjustment period") and the amount of consideration for the transfer of that residential rental building conducted by the business operator.

The application of the provisions of the preceding three paragraphs in the case where the provisions of Article 12-4, paragraph (2) apply to a residential rental building, and other matters necessary for the application of those provisions, are specified by Cabinet Order.

Where a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) has ceased to be subject to the application of that paragraph, and holds, on the day preceding the first day of the taxable period in which it ceased to be subject to it (or, where it ceased to be subject to the application of the main clause of Article 9, paragraph (1) under the provisions of Article 10, paragraph (1), Article 11, paragraph (1), or Article 12, paragraph (5), the day on which it ceased to be subject to it), inventory relating to taxable purchases acquired in Japan during the period in which it was exempted from the obligation to pay consumption tax, or taxable goods taken out of a bonded area during that period that fall under inventory (including inventory manufactured or constructed using that inventory as raw materials; the same applies hereinafter in this Article), the amount of consumption tax relating to the inventory relating to those taxable purchases or those taxable goods (meaning the amount calculated by multiplying the amount specified by Cabinet Order as the cost required to acquire that inventory or those taxable goods by 7.8/110 (or, where the inventory relating to those taxable purchases relates to a taxable transfer, etc. of assets subject to the reduced rate received from another person, or where those taxable goods are taxable goods subject to the reduced rate, 6.24/108); the same applies in paragraphs (3) and (5)) is deemed to be the amount of tax on taxable purchases, etc. that forms the basis for calculating the consumption tax on purchases for the taxable period in which it ceased to be subject to it.

The provisions of the preceding paragraph do not apply to inventory or taxable goods for which a business operator does not preserve, as provided by Cabinet Order, documents recording the details of the inventory or taxable goods prescribed in that paragraph; provided, however, that this does not apply where the business operator proves that it was unable to preserve them due to a disaster or other unavoidable circumstances.

Where an individual business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) has succeeded through inheritance to the business of a decedent (limited to a business operator exempted from the obligation to pay consumption tax under the main clause of that paragraph), or where a corporation (excluding a corporation exempted from the obligation to pay consumption tax under the main clause of that paragraph) has succeeded through a merger to the business of a merged corporation (limited to a corporation exempted from the obligation to pay consumption tax under the main clause of that paragraph) or through a company split to the business of a splitting corporation (limited to a corporation exempted from the obligation to pay consumption tax under the main clause of that paragraph), and has taken over inventory relating to taxable purchases acquired in Japan by that decedent, merged corporation, or splitting corporation during the period in which it was exempted from the obligation to pay consumption tax, or taxable goods taken out of a bonded area during that period that fall under inventory, the amount of consumption tax relating to the inventory relating to those taxable purchases or those taxable goods is deemed to be the amount of tax on taxable purchases, etc. that forms the basis for calculating the consumption tax on purchases for the taxable period that includes the day of that inheritance, merger, or company split of the individual business operator or corporation that took them over.

The provisions of paragraph (2) apply mutatis mutandis to an individual business operator or corporation to which the provisions of the preceding paragraph apply.

Where a business operator has become exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1), and holds, on the day preceding the first day of the taxable period in which it became subject to the application of that paragraph, inventory relating to taxable purchases acquired in Japan during the taxable period that includes that preceding day, or taxable goods taken out of a bonded area in that taxable period that fall under inventory, the amount of consumption tax relating to the inventory relating to those taxable purchases or those taxable goods is not to be included, for the purpose of applying the provisions of Article 30, paragraph (1) (including the provisions of paragraph (2) of that Article, where those provisions apply), in the amount of tax on taxable purchases, etc. that forms the basis for calculating the consumption tax on purchases for that taxable period.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1), and a foreign business operator that does not have, on the first day of the taxable period, a permanent establishment prescribed in Article 2, paragraph (1), item (viii)-4 (Definitions) of the Income Tax Act or Article 2, item (xii)-19 (Definitions) of the Corporation Tax Act) files with the district director having jurisdiction over its place for tax payment a written notification stating that it will be subject to the application of this paragraph for a taxable period in which the taxable sales in the base period (meaning the taxable sales in the base period prescribed in Article 9, paragraph (1); the same applies hereinafter in this paragraph and in paragraph (1) of the following Article) are 50 million yen or less (excluding the taxable period specified by Cabinet Order of a split-off parent corporation or split-off subsidiary corporation prescribed in Article 12, paragraph (1) relating to a corporate split, etc. prescribed in that paragraph (hereinafter in this paragraph and paragraph (1) of the following Article referred to as a "taxable period connected with a split, etc.")), then for the taxable periods (excluding taxable periods in which the taxable sales in the base period exceed 50 million yen and taxable periods connected with a split, etc.) on or after the taxable period following the taxable period that includes the day on which that written notification was filed (or, where the taxable period that includes the day on which that written notification was filed is the taxable period that includes the day on which the business was commenced or any other taxable period specified by Cabinet Order, that taxable period), the total amount of tax on taxable purchases, etc. that may be deducted from the consumption tax on the tax base amount under the provisions of Articles 30 through the preceding Article is, notwithstanding those provisions, the total of the following amounts. In this case, that total of the amounts is deemed to be the consumption tax on purchases for that taxable period.

the amount equivalent to 60 percent of the remainder after deducting, from the consumption tax on the total of the amounts of the tax base for taxable transfers, etc. of assets of the business operator for that taxable period (excluding those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1), or any other Act or treaty), the total amount of consumption tax relating to the amount of the refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) in that taxable period (or, for a business operator conducting a business specified by Cabinet Order, such as wholesale, the amount calculated by multiplying that remainder by the rate specified by Cabinet Order for each type of business, as provided by Cabinet Order, having regard to the proportion that the amount of tax on taxable purchases, etc. ordinarily accounts for in the amount of consumption tax on taxable transfers, etc. of assets in that business);

the remainder after deducting, from the consumption tax on the total of the amounts of the tax base for specified taxable purchases of the business operator for that taxable period, the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for specified taxable purchases prescribed in Article 38-2, paragraph (1) was received in that taxable period.

Where, under item (ii) of the preceding paragraph, there is an amount that cannot be fully deducted after deducting, from the consumption tax on the total of the amounts of the tax base for specified taxable purchases for that taxable period, the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for specified taxable purchases prescribed in Article 38-2, paragraph (1) was received in that taxable period, and there is an amount that still cannot be fully deducted after deducting the amount that cannot be fully deducted from the amount set forth in item (i) of the preceding paragraph (hereinafter in this paragraph referred to as the "undeducted amount"), that undeducted amount is deemed to be consumption tax on a taxable transfer, etc. of assets and is added to the amount of consumption tax on the tax base amount for that taxable period.

A business operator that intends to be subject to the application of paragraph (1) may not file the written notification under that paragraph, in a case listed in any of the following items, during the period specified in that item; provided, however, that this does not apply where the business operator files the written notification in order to be subject to the application of that paragraph from the taxable period that includes the day on which it commenced business or any other taxable period specified by Cabinet Order.

where the business operator is a person to whom Article 9, paragraph (7) applies: the period from the first day of the taxable period that includes the day of the purchase, etc. of an adjustment-target fixed asset prescribed in that paragraph to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day;

where the business operator is a newly established corporation prescribed in Article 12-2, paragraph (2) or a specified newly founded corporation prescribed in Article 12-3, paragraph (3), and falls under the case prescribed in Article 12-2, paragraph (2) (including as applied mutatis mutandis pursuant to Article 12-3, paragraph (3); the same applies hereinafter in this item): the period from the first day of the taxable period that includes the day of the purchase, etc. of an adjustment-target fixed asset prescribed in Article 12-2, paragraph (2) to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day;

where the business operator falls under the case prescribed in Article 12-4, paragraph (1) (excluding the case where it falls under the cases listed in the preceding two items): the period from the first day of the taxable period that includes the day of the purchase, etc. of a high-value specified asset prescribed in that paragraph relating to the high-value specified asset (meaning a high-value specified asset prescribed in that paragraph; the same applies in this item and the following item) to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day (or, where the high-value specified asset is a self-constructed high-value specified asset prescribed in that paragraph, from the first day of the taxable period that includes the day on which the construction, etc. (meaning the construction, etc. prescribed in that paragraph; the same applies in the following item) of the self-constructed high-value specified asset was completed);

where the business operator falls under the case prescribed in Article 12-4, paragraph (2) (excluding the case where it falls under the cases listed in the preceding three items): the period from the first day of the taxable period in which Article 36, paragraph (1) or (3) was applied to inventory or taxable goods that are high-value specified assets, or to an adjustment-target self-constructed high-value asset prescribed in Article 12-4, paragraph (2), to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day (or, where the construction, etc. of the adjustment-target self-constructed high-value asset had not been completed by the day preceding the adjustment application date (meaning the day on which it came to fall under the case prescribed in those provisions), from the first day of the taxable period that includes the day on which that construction, etc. was completed);

where the business operator falls under the case prescribed in Article 12-4, paragraph (3) (excluding the case where it falls under the cases listed in the preceding items): the period from the first day of the taxable period falling under the case prescribed in that paragraph to the day preceding the first day of the taxable period that includes the day on which three years have elapsed from that first day.

Where a business operator prescribed in the items of the preceding paragraph has come to fall under a case listed in those items, and has filed the written notification under paragraph (1) with the district director having jurisdiction over its place for tax payment during the period from the first day of the taxable period that includes the day of the purchase, etc. of an adjustment-target fixed asset prescribed in item (i) or (ii) of the preceding paragraph, the day of the purchase, etc. of a high-value specified asset prescribed in item (iii) of that paragraph, or the adjustment application date prescribed in item (iv) of that paragraph, or from the first day of the taxable period that falls under the case prescribed in item (v) of that paragraph, to the day on which it came to fall under the case listed in the items of that paragraph, the filing of that written notification is deemed not to have been made for the purpose of applying the provisions of paragraph (1).

A business operator that has filed the written notification under the provisions of paragraph (1) must, when it intends to cease to be subject to the application of that paragraph or when it has discontinued its business, file a written notification to that effect with the district director having jurisdiction over its place for tax payment.

In the case referred to in the preceding paragraph, a business operator that has filed the written notification under the provisions of paragraph (1) may not, except where it has discontinued its business, file a written notification to the effect that it intends to cease to be subject to the application of that paragraph, except on or after the first day of the taxable period that includes the day on which two years have elapsed from the first day of the following taxable period prescribed in that paragraph.

When a written notification under the provisions of paragraph (5) has been filed, the notification under the provisions of paragraph (1) ceases to be effective on and after the day following the last day of the taxable period that includes the day on which that filing was made.

Special provisions on the application of paragraph (1) or the preceding paragraph in the case where, owing to unavoidable circumstances, the written notification under the provisions of paragraph (1) or (5) could not be filed by the day preceding the first day of the taxable period for which the business operator intends to become subject to, or to cease to be subject to, the application of paragraph (1) are specified by Cabinet Order.

Where a business operator that has suffered damage due to the occurrence of a disaster or other unavoidable cause (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) and a business operator subject to the application of paragraph (1) of the preceding Article) has, by reason of that damage, come to need to be subject to the application of paragraph (1) of that Article for the taxable period that includes the day on which the disaster or other unavoidable cause occurred (excluding a taxable period in which the taxable sales in the base period exceed 50 million yen and a taxable period connected with a split, etc.; hereinafter in this paragraph, the following paragraph, and paragraph (5) referred to as the "elected disaster-affected taxable period"), and has obtained the approval of the district director having jurisdiction over its place for tax payment for being subject to the application of that paragraph for that elected disaster-affected taxable period, the business operator is deemed to have filed the written notification under that paragraph with that district director on the day preceding the first day of the elected disaster-affected taxable period for which it obtained that approval. In this case, paragraph (3) of that Article does not apply.

A business operator that intends to obtain the approval under the preceding paragraph must file with the district director having jurisdiction over its place for tax payment, within two months from the day on which the disaster or other unavoidable cause prescribed in that paragraph ceased (or, where the day on which the disaster or other unavoidable cause ceased falls on or after the day following the last day of the elected disaster-affected taxable period relating to the application, by the deadline for filing the return under Article 45, paragraph (1) for that elected disaster-affected taxable period), a written application stating the circumstances in which it has become necessary to be subject to the application of paragraph (1) of the preceding Article and other matters specified by Ministry of Finance Order.

Where a written application under the preceding paragraph is filed and the district director finds that the circumstances prescribed in that paragraph relating to the application are not appropriate, the district director rejects the application.

Where a written application under paragraph (2) is filed and the district director makes a disposition of approval or rejection of the application, the district director notifies the business operator that filed the application to that effect in writing.

Where a written application under paragraph (2) is filed and no disposition of approval or rejection has been made by the day on which two months have elapsed from the day following the last day of the elected disaster-affected taxable period relating to the application, the approval is deemed to have been given on that day; provided, however, that this does not apply where the day on which the disaster or other unavoidable cause prescribed in that paragraph ceased falls on or after the day following the last day of the elected disaster-affected taxable period relating to the application.

Where a business operator that has suffered damage due to the occurrence of a disaster or other unavoidable cause (limited to a business operator subject to the application of paragraph (1) of the preceding Article) has, by reason of that damage, ceased to need to be subject to the application of paragraph (1) of that Article for the taxable period that includes the day on which the disaster or other unavoidable cause occurred (including, among the taxable periods on or after the taxable period following that taxable period, those specified by Cabinet Order; hereinafter in this paragraph referred to as the "disaster-affected taxable period of discontinuance"), and has obtained the approval of the district director having jurisdiction over its place for tax payment for ceasing to be subject to the application of that paragraph for that disaster-affected taxable period of discontinuance, the business operator is deemed to have filed the written notification under paragraph (5) of that Article with that district director on the day preceding the first day of the disaster-affected taxable period of discontinuance for which it obtained that approval. In this case, paragraph (6) of that Article does not apply.

The provisions of paragraphs (2) through (5) apply mutatis mutandis to the case where the provisions of the preceding paragraph apply. In this case, the phrase "the preceding paragraph" in paragraph (2) is deemed to be replaced with "paragraph (6)", the phrase "it has become necessary to be subject to" with "it is no longer necessary to be subject to", and the phrase "elected disaster-affected taxable period" with "disaster-affected taxable period of discontinuance", and the phrase "elected disaster-affected taxable period" in paragraph (5) is deemed to be replaced with "disaster-affected taxable period of discontinuance".

Matters necessary for the application of the provisions of paragraph (1) or (6) in cases such as where a business operator that has obtained the approval under paragraph (1) or (6) has, before that approval, filed a return stating the matters listed in the items of Article 43, paragraph (1), are specified by Cabinet Order.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) has, by reason of having accepted a returned item or granted a price reduction or rebate with respect to a taxable transfer, etc. of assets conducted in Japan (excluding one for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1), or any other Act or treaty), refunded all or part of the total of the amount of consideration for the taxable transfer, etc. of assets (meaning the amount of consideration prescribed in Article 28, paragraph (1)) and the amount calculated by multiplying that amount of consideration by 10 percent (or, where the taxable transfer, etc. of assets is a taxable transfer, etc. of assets subject to the reduced rate, 8 percent) (hereinafter in this paragraph and Article 39 referred to as the "tax-inclusive price"), or has reduced all or part of the amount of accounts receivable or other claims relating to the tax-inclusive price of the taxable transfer, etc. of assets (hereinafter in this paragraph through paragraph (4) referred to as a "refund, etc. of consideration for sales"), the total amount of consumption tax relating to the amount of the refund, etc. of consideration for sales made in the taxable period (meaning the amount calculated by multiplying the tax-inclusive price refunded or the amount of the claim reduced by 7.8/110 (or, where the refund, etc. of consideration for sales relates to a taxable transfer, etc. of assets subject to the reduced rate, 6.24/108); the same applies in the following paragraph) is deducted from the consumption tax on the tax base amount for the taxable period that includes the day on which the refund, etc. of consideration for sales was made.

The provisions of the preceding paragraph do not apply to the amount of consumption tax relating to a refund, etc. of consideration for sales for which a business operator does not preserve books recording the details of the amount of that refund, etc. of consideration for sales; provided, however, that this does not apply where the business operator proves that it was unable to preserve them due to a disaster or other unavoidable circumstances.

Where an heir who has succeeded to the business of a decedent through inheritance makes a refund, etc. of consideration for sales with respect to a taxable transfer, etc. of assets conducted by the decedent, the provisions of the preceding two paragraphs apply as if the heir had made a refund, etc. of consideration for sales with respect to a taxable transfer, etc. of assets conducted by the heir.

The provisions of the preceding paragraph apply mutatis mutandis to the case where a merging corporation that has succeeded to a business through a merger makes a refund, etc. of consideration for sales with respect to a taxable transfer, etc. of assets conducted by the merged corporation, or the case where a successor corporation in a company split that has succeeded to a business through a company split makes a refund, etc. of consideration for sales with respect to a taxable transfer, etc. of assets conducted by the splitting corporation.

In addition to what is provided for in the preceding two paragraphs, matters concerning the recording and preservation of the books prescribed in paragraph (2) and other matters necessary for the application of the provisions of paragraph (1) are specified by Cabinet Order.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) has, by reason of having received a price reduction or rebate with respect to a specified taxable purchase made in Japan, received a refund of all or part of the amount of consideration paid for the specified taxable purchase (meaning the amount of consideration paid prescribed in Article 28, paragraph (2)), or a reduction of all or part of the amount of accounts payable or other debts relating to the amount of consideration paid for the specified taxable purchase (hereinafter in this paragraph through paragraph (4) referred to as a "refund, etc. of consideration for specified taxable purchases"), the total amount of consumption tax relating to the amount for which a refund, etc. of consideration for specified taxable purchases was received in the taxable period (meaning the amount calculated by multiplying the amount refunded or the amount of the debt reduced by 7.8 percent; the same applies in the following paragraph) is deducted from the consumption tax on the tax base amount for the taxable period that includes the day on which the refund, etc. of consideration for specified taxable purchases was received.

The provisions of the preceding paragraph do not apply to the amount of consumption tax relating to the amount for which a refund, etc. of consideration for specified taxable purchases was received, where a business operator does not preserve books recording the details of the amount for which that refund, etc. of consideration for specified taxable purchases was received; provided, however, that this does not apply where the business operator proves that it was unable to preserve them due to a disaster or other unavoidable circumstances.

Where an heir who has succeeded to the business of a decedent through inheritance receives a refund, etc. of consideration for specified taxable purchases with respect to a specified taxable purchase made by the decedent, the provisions of the preceding two paragraphs apply as if the heir had received a refund, etc. of consideration for specified taxable purchases with respect to a specified taxable purchase made by the heir.

The provisions of the preceding paragraph apply mutatis mutandis to the case where a merging corporation that has succeeded to a business through a merger receives a refund, etc. of consideration for specified taxable purchases with respect to a specified taxable purchase made by the merged corporation, or the case where a successor corporation in a company split that has succeeded to a business through a company split receives a refund, etc. of consideration for specified taxable purchases with respect to a specified taxable purchase made by the splitting corporation.

In addition to what is provided for in the preceding two paragraphs, matters concerning the recording and preservation of the books prescribed in paragraph (2) and other matters necessary for the application of the provisions of paragraph (1) are specified by Cabinet Order.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) has conducted a taxable transfer, etc. of assets in Japan (excluding one for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1), or any other Act or treaty), and, because a fact specified by Cabinet Order, such as the write-off of claims by a decision approving a reorganization plan or a fact equivalent thereto, has occurred with respect to accounts receivable or other claims against the counterparty to the taxable transfer, etc. of assets, it has become unable to collect all or part of the tax-inclusive price of the taxable transfer, etc. of assets, the total amount of consumption tax relating to the tax-inclusive price of the taxable transfer, etc. of assets that has become uncollectible (meaning the amount calculated by multiplying that tax-inclusive price by 7.8/110 (or, where that tax-inclusive price relates to a taxable transfer, etc. of assets subject to the reduced rate, 6.24/108); the same applies in paragraph (3)) is deducted from the consumption tax on the tax base amount for the taxable period that includes the day on which it became unable to collect it.

The provisions of the preceding paragraph do not apply where a business operator does not preserve, as provided by Ministry of Finance Order, documents certifying that the fact prescribed in that paragraph has occurred with respect to the claims prescribed in that paragraph; provided, however, that this does not apply where the business operator proves that it was unable to preserve them due to a disaster or other unavoidable circumstances.

Where a business operator prescribed in paragraph (1) to which the provisions of that paragraph have been applied has collected all or part of the tax-inclusive price of a taxable transfer, etc. of assets to which the provisions of that paragraph were applied, the amount of consumption tax relating to the tax-inclusive price so collected is deemed to be consumption tax on a taxable transfer, etc. of assets and is added to the consumption tax on the tax base amount for the taxable period of that business operator that includes the day on which it was collected.

Where there is an heir who has succeeded through inheritance to the business of the decedent relating to that inheritance, and, with respect to accounts receivable or other claims against the counterparty to a taxable transfer, etc. of assets conducted by that decedent, a fact to which the provisions of paragraph (1) apply has occurred on or after the day of that inheritance, the provisions of that paragraph and paragraph (2) apply as if the heir had conducted that taxable transfer, etc. of assets.

Where an heir who has succeeded through inheritance to the business of the decedent relating to that inheritance has collected all or part of the tax-inclusive price of a taxable transfer, etc. of assets to which the provisions of paragraph (1) were applied with respect to that decedent, the provisions of paragraph (3) apply as if the heir had been subject to the application of the provisions of paragraph (1).

The provisions of the preceding two paragraphs apply mutatis mutandis to a merging corporation that has succeeded through a merger to the business of the merged corporation relating to that merger, or a successor corporation in a company split that has succeeded through a company split to the business of the splitting corporation relating to that company split.

Matters necessary for the details of the calculation of the amount of consumption tax relating to the tax-inclusive price prescribed in paragraph (1) are specified by Cabinet Order.

In addition to what is provided for in this Chapter, matters necessary for the details of the calculation of tax deductions are specified by Cabinet Order.

A business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) and a business operator that has filed a written notification under the provisions of Article 19, paragraph (1), items (iii) through (iv)-2; the same applies in paragraphs (4), (6), and (8)) must, for each of the periods obtained by dividing its taxable period (excluding, for an individual business operator, the taxable period that includes the day on which it commenced business and, for a corporation, a taxable period not exceeding three months and the taxable period that includes the day of establishment of a newly established corporation other than one established through a merger; the same applies in paragraph (4)) into periods of one month each from the day on which that taxable period begins (where a period of less than one month arises at the end, that period of less than one month; excluding the last of the periods so divided into periods of one month each; hereinafter in this paragraph and the following paragraph referred to as a "one-month interim filing period"), file with the district director, within two months from the day following the last day of that one-month interim filing period (or, where that one-month interim filing period is the one-month period beginning on the first day of the taxable period, from the day on which two months have elapsed from the first day of the taxable period), a return stating each of the following matters; provided, however, that this does not apply to a one-month interim filing period for which the amount set forth in item (i) is 4 million yen or less.

the amount calculated by dividing, by the number of months in the immediately preceding taxable period, the amount of consumption tax set forth in Article 45, paragraph (1), item (iv) that is to be stated in the final return for the immediately preceding taxable period (meaning the return under the provisions of Article 45, paragraph (1); the same applies hereinafter in this Article), limited to that finalized by the day specified in each of the following in accordance with the category of one-month interim filing period listed there (referred to as the "finalization date" in item (i) of the following paragraph);

a one-month interim filing period that ended during the period from the first day of that taxable period to the day before the day on which two months have elapsed from that day: the day before the day on which two months elapse from the first day of that taxable period (where the provisions of Article 10, paragraph (2) (Computation of Periods and Special Provisions on Time Limits) of the Act on General Rules for National Taxes apply to the deadline for filing the final return for the immediately preceding taxable period, the day deemed under the provisions of that paragraph to be the deadline for filing that final return);

a one-month interim filing period other than that referred to in (a): the last day of that one-month interim filing period;

the basis of the calculation of the amount listed in the preceding item and other matters as specified by Ministry of Finance Order.

In the case referred to in the preceding paragraph, where the business operator referred to in that paragraph is a merging corporation relating to a merger (excluding the case where a corporation is established by the merger; the same applies hereinafter in this paragraph) that carried out the merger within a period set forth in the following items, the amount set forth in item (i) of that paragraph, with respect to the return under the provisions of the preceding paragraph for that taxable period to be submitted by that corporation, is, notwithstanding the provisions of that item, the amount obtained by adding the amount specified in the relevant one of the following items to the amount equivalent to the amount calculated under the provisions of that item.

the taxable period immediately preceding that taxable period: the amount calculated by dividing the amount set forth in Article 45, paragraph (1), item (iv) to be stated in the final return for the taxable period of the merged corporation that includes the day before the date of the merger (hereinafter in this item referred to as the "specified taxable period of the merged corporation"), which was finalized by the finalization date relating to that one-month interim filing period of the merging corporation (where the number of months of the specified taxable period of the merged corporation is less than three months or there is no such finalized amount, the amount set forth in that item to be stated in the final return for the taxable period immediately preceding the specified taxable period of the merged corporation (excluding one whose number of months is less than three months), which was finalized by the finalization date relating to that one-month interim filing period of the merging corporation; hereinafter in this paragraph and the following paragraph referred to as the "finalized consumption tax amount of the merged corporation") by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by the ratio of the number of months in the period from the first day of the immediately preceding taxable period of the merging corporation to the day before the date of the merger to the number of months of that immediately preceding taxable period;

the period from the first day of that taxable period to the last day of that one-month interim filing period: the amount calculated by dividing the finalized consumption tax amount of the merged corporation by the number of months in the taxable period of that merged corporation that formed the basis of its calculation.

In the case referred to in paragraph (1), where the business operator referred to in that paragraph is a merging corporation relating to a merger (limited to the case where a corporation is established by the merger), the amount set forth in item (i) of that paragraph, with respect to the return under the provisions of that paragraph for the first taxable period after its establishment to be submitted by that corporation, is, notwithstanding the provisions of that item, the total of the amounts calculated by dividing, for each merged corporation, the finalized consumption tax amount of the merged corporation by the number of months in the taxable period of that merged corporation that formed the basis of its calculation.

A business operator must, for each period divided into three-month periods on or after the first day of its taxable period (where a period of less than three months arises at the end, that period of less than three months, and excluding the last of the periods so divided into three-month periods; hereinafter in this paragraph referred to as a "three-month interim filing period"), submit to the district director, within two months from the day following the last day of that three-month interim filing period, a return stating the following matters; provided, however, that this does not apply to a three-month interim filing period where the amount set forth in item (i) is 1 million yen or less or where that three-month interim filing period is a period that includes a one-month interim filing period prescribed in paragraph (1) for which a return under the provisions of that paragraph is to be submitted.

the amount calculated by dividing the amount of consumption tax set forth in Article 45, paragraph (1), item (iv) to be stated in the final return for the immediately preceding taxable period, which was finalized by the last day of that three-month interim filing period, by the number of months in that immediately preceding taxable period, and multiplying the result by three;

the basis of the calculation of the amount listed in the preceding item and other matters as specified by Ministry of Finance Order.

The provisions of paragraphs (2) and (3) apply mutatis mutandis to the case where the provisions of the preceding paragraph apply. In this case, the phrase "the business operator referred to in that paragraph" in paragraph (2) is deemed to be replaced with "the business operator referred to in paragraph (4)", the phrase "the provisions of the preceding paragraph" with "the provisions of paragraph (4)"; in item (i) of paragraph (2), the phrase "the finalization date relating to that one-month interim filing period" is deemed to be replaced with "the last day of that three-month interim filing period", and the phrase "the ratio" with "three times the ratio"; in item (ii) of paragraph (2), the phrase "one-month interim filing period" is deemed to be replaced with "three-month interim filing period", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by the number of months in the period from the date of the merger to the last day of that three-month interim filing period (three, where that number of months exceeds three)"; and in paragraph (3), the phrase "the business operator referred to in that paragraph" is deemed to be replaced with "the business operator referred to in paragraph (4)", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by three".

A business operator must, for the six-month period on or after the first day of its taxable period (excluding, in the case of an individual business operator, the taxable period that includes the day on which the business was commenced and, in the case of a corporation, a taxable period not exceeding six months and the taxable period that includes the day of establishment of a corporation that has been newly established other than one established by a merger; hereinafter in this paragraph and paragraphs (8), (10) and (11) referred to as a "six-month interim filing period"), submit to the district director, within two months from the day following the last day of that six-month interim filing period, a return stating the following matters; provided, however, that this does not apply to a six-month interim filing period where the amount set forth in item (i) is 240,000 yen or less or where that six-month interim filing period is a period that includes a one-month interim filing period or three-month interim filing period prescribed in paragraph (1) or (4) for which a return under the provisions of those paragraphs is to be submitted.

the amount calculated by dividing the amount of consumption tax set forth in Article 45, paragraph (1), item (iv) to be stated in the final return for the immediately preceding taxable period, which was finalized by the last day of that six-month interim filing period, by the number of months in that immediately preceding taxable period, and multiplying the result by six;

the basis of the calculation of the amount listed in the preceding item and other matters as specified by Ministry of Finance Order.

The provisions of paragraphs (2) and (3) apply mutatis mutandis to the case where the provisions of the preceding paragraph apply. In this case, the phrase "the business operator referred to in that paragraph" in paragraph (2) is deemed to be replaced with "the business operator referred to in paragraph (6)", the phrase "the provisions of the preceding paragraph" with "the provisions of paragraph (6)"; in item (i) of paragraph (2), the phrase "the finalization date relating to that one-month interim filing period" is deemed to be replaced with "the last day of that six-month interim filing period", the phrase "less than three months" with "less than six months", and the phrase "the ratio" with "six times the ratio"; in item (ii) of paragraph (2), the phrase "one-month interim filing period" is deemed to be replaced with "six-month interim filing period", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by the number of months in the period from the date of the merger to the last day of that six-month interim filing period"; and in paragraph (3), the phrase "the business operator referred to in that paragraph" is deemed to be replaced with "the business operator referred to in paragraph (6)", and the phrase "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation" with "by the number of months in the taxable period of that merged corporation that formed the basis of its calculation, and multiplying the result by six".

Where a business operator that is not required to submit, for a six-month interim filing period, the return under the provisions of paragraph (6) (hereinafter in this paragraph and paragraph (11) referred to as a "six-month interim return") because the amount set forth in paragraph (6), item (i) is 240,000 yen or less submits to the district director having jurisdiction over its place for tax payment a written notification stating that it will submit that six-month interim return, the provisions of the proviso to paragraph (6) do not apply to the six-month interim filing periods on or after the six-month interim filing period whose last day first arrives on or after the day of that submission by the business operator that submitted that written notification (limited to those for which the amount set forth in that item is 240,000 yen or less; the same applies in paragraph (11)).

A business operator that has submitted the written notification under the provisions of the preceding paragraph must, when it intends to cease to be subject to the application of the provisions of that paragraph or when it has discontinued its business, submit a written notification to that effect to the district director having jurisdiction over its place for tax payment.

When a written notification under the provisions of the preceding paragraph has been submitted, the notification under the provisions of paragraph (8) ceases to be effective with respect to the six-month interim filing periods on or after the six-month interim filing period whose last day first arrives on or after the day of that submission.

Where a business operator that has submitted the written notification under the provisions of paragraph (8) fails to submit a six-month interim return for a six-month interim filing period on or after the six-month interim filing period whose last day first arrives on or after the day of that submission by its deadline for filing, that business operator is deemed to have submitted the written notification under the provisions of paragraph (9) to the district director having jurisdiction over its place for tax payment on the last day of that six-month interim filing period.

The number of months in paragraphs (1) through (7) is calculated according to the calendar, and where a fraction of less than one month arises, it is counted as one month.

Where, owing to an extension of the time limit relating to filing under the provisions of Article 11 (Extension of Time Limits due to Disasters and Similar Causes) of the Act on General Rules for National Taxes, the deadline for filing an interim return (meaning a return under the provisions of paragraph (1), (4) or (6) of the preceding Article; the same applies hereinafter in this Chapter) and the deadline for filing the return under the provisions of Article 45, paragraph (1) for the taxable period relating to that interim return fall on the same day, it is not required to submit that interim return, notwithstanding the main clause of paragraph (1), the main clause of paragraph (4) or the main clause of paragraph (6) of the preceding Article.

Where a business operator that is to submit an interim return calculates, by treating a one-month interim filing period prescribed in Article 42, paragraph (1), a three-month interim filing period prescribed in paragraph (4) of that Article, or a six-month interim filing period prescribed in paragraph (6) of that Article (hereinafter in this paragraph referred to as an "interim filing period") as one taxable period, the total of the amounts of the tax base for taxable transfers, etc. of assets in that interim filing period (meaning the amount of the tax base for taxable transfers, etc. of assets made in Japan during that interim filing period (excluding those exempted from consumption tax under Article 7, paragraph (1), Article 8, paragraph (1) or any other provisions of laws or treaties); the same applies hereinafter in this paragraph), the total of the amounts of the tax base for specified taxable purchases (meaning the amount of the tax base for specified taxable purchases made in Japan during that interim filing period; the same applies hereinafter in this paragraph), and the amounts set forth in Article 45, paragraph (1), items (ii) through (iv), that business operator may state the following matters in the interim return that it submits, in place of the matters set forth in the items of Article 42, paragraph (1), the items of paragraph (4) of that Article, or the items of paragraph (6) of that Article.

the total of the amounts of the tax base classified by each different tax rate for those taxable transfers, etc. of assets, the total of the amount of the tax base for specified taxable purchases, and the total of those totals (referred to in the following item as the "tax base amount");

the consumption tax on the tax base amount, classified by each different tax rate;

the total of the amounts of consumption tax set forth in Article 45, paragraph (1), item (iii), (a) through (d) that should be deducted from the amount of consumption tax set forth in the preceding item under the provisions of the preceding Chapter if that interim filing period were treated as one taxable period;

the amount of consumption tax equivalent to the remainder after deducting the total of the amounts of consumption tax set forth in the preceding item from the amount of consumption tax set forth in item (ii);

the basis of the calculation of the amount listed in the preceding items and other matters as specified by Ministry of Finance Order.

With respect to the calculation of the total of the amounts of the tax base for taxable transfers, etc. of assets and the total of the amounts of the tax base for specified taxable purchases in the interim filing period prescribed in the preceding paragraph, and the amount of consumption tax set forth in item (ii) of that paragraph and the total of the amounts of consumption tax set forth in item (iii) of that paragraph, the phrase "return under the provisions of Article 45, paragraph (1) (including a return filed after the due date prescribed in Article 18, paragraph (2) (Filing of a Return after the Due Date) of the Act on General Rules for National Taxes relating to that return" in Article 16, paragraph (3) is deemed to be replaced with "interim return (meaning a return under the provisions of Article 42, paragraph (1), (4) or (6) in which the matters set forth in the items of Article 43, paragraph (1) are stated", and the phrase "return under the provisions of Article 45, paragraph (1)" in Article 17, paragraph (4) and Article 18, paragraph (2) is deemed to be replaced with "interim return".

Where a business operator that submits an interim return stating the matters set forth in the items of paragraph (1) retains, pursuant to Article 57-4, paragraph (6), copies of qualified invoices (meaning the qualified invoices prescribed in Article 57-4, paragraph (1); the same applies in Article 45, paragraph (5)) or qualified simplified invoices (meaning the qualified simplified invoices prescribed in Article 57-4, paragraph (2); the same applies in Article 45, paragraph (5)) issued in connection with taxable transfers, etc. of assets made in Japan during the interim filing period prescribed in paragraph (1) (including the case where it retains the electronic or magnetic records referred to in that paragraph pursuant to the provisions of that paragraph), the amount of consumption tax on the tax base amount classified by each different tax rate as set forth in paragraph (1), item (ii) relating to those taxable transfers, etc. of assets may, notwithstanding the provisions of that item, be the amount calculated in accordance with the provisions of Article 45, paragraph (5).

An interim return stating the matters set forth in the items of paragraph (1) must be accompanied by a document stating, as provided by Ministry of Finance Order, the details of the amount of consideration for transfers, etc. of assets and the amount of tax on taxable purchases, etc. (meaning the amount of tax on taxable purchases, etc. prescribed in Article 30, paragraph (2); the same applies hereinafter in this Chapter) during the interim filing period prescribed in that paragraph, and other matters.

Where a business operator that is to submit an interim return fails to submit the interim return by its deadline for filing (excluding a case to which Article 42, paragraph (11) applies), that business operator is deemed to have submitted to the district director, on that deadline for filing, an interim return stating the matters set forth in the items of paragraph (1), the items of paragraph (4) or the items of paragraph (6) of that Article.

A business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) must, for each taxable period, submit to the district director, within two months from the day following the last day of that taxable period, a return stating the following matters; provided, however, that this does not apply to a taxable period in which there are no taxable transfers, etc. of assets in Japan (excluding those exempted from consumption tax under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other Acts or treaties) and no specified taxable purchases, and in which there is no amount of consumption tax set forth in item (iv):

the total of the amounts of the tax base, classified by each different tax rate, relating to taxable transfers, etc. of assets made in Japan during that taxable period (excluding those exempted from consumption tax under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other Acts or treaties), the total of the amounts of the tax base relating to specified taxable purchases made in Japan during that taxable period, and the sum of those totals (referred to in the following item as the "tax base amount");

the amount of consumption tax on the tax base amount, classified by each different tax rate;

the total of the following amounts of consumption tax that are to be deducted, under the provisions of the preceding Chapter, from the amount of consumption tax set forth in the preceding item for that taxable period:

the consumption tax on purchases prescribed in Article 32, paragraph (1), item (i);

the amount of consumption tax on the amount of refund, etc. of consideration for sales prescribed in Article 38, paragraph (1);

the amount of consumption tax on the amount received as refund, etc. of consideration for specified taxable purchases prescribed in Article 38-2, paragraph (1);

the amount of consumption tax on the tax-inclusive price of a taxable transfer, etc. of assets for which it has become impossible to receive payment, as prescribed in Article 39, paragraph (1);

the amount of consumption tax equivalent to the remainder after deducting the total of the amounts of consumption tax set forth in the preceding item from the amount of consumption tax set forth in item (ii);

where there is still a shortfall after deducting the total of the amounts of consumption tax set forth in item (iii) from the amount of consumption tax set forth in item (ii), the amount of that shortfall;

where the business operator is a business operator that has submitted an interim return for that taxable period, the amount of consumption tax equivalent to the remainder after deducting the interim payment relating to that return from the amount of consumption tax set forth in item (iv);

where there is still a shortfall after deducting the interim payment from the amount of consumption tax set forth in item (iv), the amount of that shortfall;

the basis of the calculation of the amount listed in the preceding items and other matters as specified by Ministry of Finance Order.

Where an individual business operator that is to submit a return under the provisions of the preceding paragraph dies, during the period from the day following the last day of the taxable period until the deadline for filing that return, without having submitted that return, the heir must, as provided by Cabinet Order, submit that return to the district director by the day before the day on which four months have elapsed from the day following the day on which the heir learned that the inheritance had commenced.

Where an individual business operator dies in the middle of a taxable period and the case falls under one where a return under the provisions of paragraph (1) must be submitted for the consumption tax for that taxable period of that person, the heir must, as provided by Cabinet Order, submit that return for that consumption tax to the district director by the day before the day on which four months have elapsed from the day following the day on which the heir learned that the inheritance had commenced.

Where the residual assets of a corporation in liquidation have been determined, with respect to the application of paragraph (1) to the taxable period that includes the day on which the residual assets of that corporation are determined, the phrase "within two months" in that paragraph is deemed to be replaced with "within one month (or, where the final distribution or delivery of the residual assets is to take place within one month from that following day, by the day before the day on which it is to take place)".

Where a business operator that submits a return under the provisions of paragraph (1) retains, pursuant to Article 57-4, paragraph (6), copies of qualified invoices or qualified simplified invoices issued in connection with taxable transfers, etc. of assets made in Japan during the taxable period relating to that return (including the case where it retains the electronic or magnetic records referred to in that paragraph pursuant to the provisions of that paragraph), the amount of consumption tax on the tax base amount classified by each different tax rate as set forth in paragraph (1), item (ii) relating to those taxable transfers, etc. of assets may, notwithstanding the provisions of that item, be an amount calculated, as provided by Cabinet Order, on the basis of the amount of consumption tax, etc. set forth in Article 57-4, paragraph (1), item (v) that is stated in the qualified invoice, or any other amount specified by Cabinet Order; provided, however, that this does not apply to taxable transfers, etc. of assets to which the provisions of Article 16, paragraph (1), Article 17, paragraph (1) or the main clause of paragraph (2), or Article 18, paragraph (1), or any other provisions specified by Cabinet Order apply.

A return under the provisions of paragraph (1) must be accompanied by a document stating, as provided by Ministry of Finance Order, the details of the amount of consideration for transfers, etc. of assets and the amount of tax on taxable purchases, etc. during that taxable period, and other matters.

Where a corporation that is to submit the return under the provisions of paragraph (1) of the preceding Article (hereinafter in this paragraph and paragraph (4) referred to as a "consumption tax return") (limited to a corporation to which the provisions of Article 75-2, paragraph (1) (Special Provisions on Extension of the Due Date for Filing a Tax Return) of the Corporation Tax Act (including as applied mutatis mutandis pursuant to Article 144-8 (Special Provisions on Extension of the Due Date for Filing a Tax Return) of that Act; the same applies hereinafter in this paragraph) apply (excluding a corporation whose deadline for filing a consumption tax return is extended by the application of Article 60, paragraph (8))) submits to the district director having jurisdiction over its place for tax payment a written notification stating that the deadline for filing the consumption tax return is to be extended, the deadline for filing the consumption tax return for the taxable period that includes the last day of each business year on or after the business year that includes the day of that submission (including, in the case of a group tax sharing corporation prescribed in Article 2, item (xii)-7-2 (Definitions) of the Corporation Tax Act, that business year where the day of that submission is within 45 days from the day following the last day of that business year) (limited to a business year for which the deadline for filing a return under the provisions of Article 74, paragraph (1) (Final Returns) or Article 144-6, paragraph (1) or (2) (Final Returns) of that Act is extended pursuant to the provisions of Article 75-2, paragraph (1) of that Act (including a business year for which the provisions of Article 75-2, paragraph (1) of that Act are deemed not to apply pursuant to the provisions of Article 75-2, paragraph (9) of that Act (including as applied mutatis mutandis pursuant to Article 144-8 of that Act))) is, notwithstanding the provisions of paragraph (1) of the preceding Article, within three months from the day following the last day of that taxable period.

A corporation that has submitted a written notification under the provisions of the preceding paragraph must, when it intends to cease to be subject to the application of the provisions of that paragraph, or when it has discontinued its business, submit a written notification to that effect to the district director having jurisdiction over its place for tax payment.

Where a written notification under the provisions of the preceding paragraph has been submitted, the notification under the provisions of paragraph (1) ceases to be effective with respect to the taxable periods that include the last day of a business year, on or after the taxable period that includes the last day of the business year that includes the day on which that submission was made.

A corporation to which the provisions of paragraph (1) apply must pay, together with the consumption tax that is the basis of its calculation, interest tax equivalent to the amount calculated by multiplying the amount of consumption tax for the taxable period relating to the consumption tax return to which the provisions of that paragraph apply by a rate of 7.3 percent per annum, in accordance with the number of days in the period from the day on which two months have elapsed from the day following the last day of that taxable period to the deadline for filing extended pursuant to the provisions of that paragraph.

Where a disaster or other unavoidable reason arises, in respect of a corporation to which the provisions of paragraph (1) apply, before the day on which two months have elapsed from the day following the last day of the taxable period to which the provisions of that paragraph apply, the provisions of Article 11 (Extension of Time Limits due to Disasters and Similar Causes) of the Act on General Rules for National Taxes may be applied, for that taxable period only, by deeming the provisions of that paragraph not to apply.

Where the provisions of paragraph (1) apply, the retention period for the books or invoices, etc. prescribed in Article 30, paragraph (7), and other matters necessary for the application of the provisions of paragraph (1) are specified by Cabinet Order.

A business operator (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) may, where there is an amount set forth in Article 45, paragraph (1), item (v) or (vii) for the consumption tax for its taxable period, even in a case where it has no obligation to submit a return under the proviso to that paragraph, submit to the district director a return stating the matters set forth in the items of Article 45, paragraph (1), in order to receive a refund under the provisions of Article 52, paragraph (1) or Article 53, paragraph (1).

Where an individual business operator dies in the middle of a taxable period and the case falls under one where a return under the provisions of the preceding paragraph may be submitted for the consumption tax for that taxable period of that person, the heir may, as provided by Cabinet Order, submit that return to the district director.

A return under the provisions of paragraph (1) must be accompanied by a document stating, as provided by Ministry of Finance Order, the details of the amount of consideration for transfers, etc. of assets and the amount of tax on taxable purchases, etc. during that taxable period, and other matters.

A business operator that is a specified corporation (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1)) must, with respect to a filing of a return for consumption tax on taxable transfers, etc. of assets and specified taxable purchases that is to be made, pursuant to the provisions of Article 42, Article 43, Article 45 or the preceding Article, or Article 18 (Filing of a Return after the Due Date) or Article 19 (Amended Return) of the Act on General Rules for National Taxes, by means of an interim return or final return, etc., or an amended return relating to those returns (meaning the amended return prescribed in Article 19, paragraph (3) of that Act; the same applies in Article 56) (hereinafter in this paragraph and paragraph (3) of this Article and in paragraph (1) of the following Article referred to as the "tax return, etc."), or that is to be made by attaching thereto the documents that are to be attached to the tax return, etc. pursuant to the provisions of this Act (including orders issued thereunder) or Article 18, paragraph (3) or Article 19, paragraph (4) of the Act on General Rules for National Taxes (hereinafter in this paragraph and paragraph (3) referred to as "attached documents"), make that filing, notwithstanding those provisions, as provided by Ministry of Finance Order, by providing the matters that are to be stated in the tax return, etc. (referred to in paragraph (3) as the "matters stated in a return") or the matters that are to be stated in the attached documents (referred to in paragraph (3) as the "matters stated in attached documents") by a method specified by Ministry of Finance Order as a method of using an electronic data processing system (meaning an electronic data processing system that connects a computer used by the National Tax Agency (including input/output devices; the same applies hereinafter in this paragraph and paragraph (4)) with a computer used by the business operator making that filing by a telecommunications line; the same applies in paragraphs (1) and (6) of the following Article) after notifying the district director in advance as provided by Ministry of Finance Order.

The term "specified corporation" prescribed in the preceding paragraph means any of the following business operators:

a corporation whose amount of stated capital, amount of capital contributions or other amount specified by Cabinet Order as being similar thereto at the beginning of the relevant business year exceeds 100 million yen (excluding a foreign corporation prescribed in Article 2, item (iv) (Definitions) of the Corporation Tax Act);

a mutual company prescribed in Article 2, paragraph (5) (Definitions) of the Insurance Business Act (Act No. 105 of 1995);

an investment corporation prescribed in Article 2, paragraph (12) (Definitions) of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951) (excluding a corporation set forth in item (i));

a specific purpose company prescribed in Article 2, paragraph (3) (Definitions) of the Act on the Securitization of Assets (Act No. 105 of 1998) (excluding a corporation set forth in item (i));

the national government or a local government.

With respect to a filing under paragraph (1) made pursuant to the provisions of that paragraph, the provisions of this Act (including orders issued thereunder), the provisions of the Act on General Rules for National Taxes (excluding Article 124 (Statement of the Name, Address, and Identification Number of the Person Submitting Documents)) and the provisions of other laws and regulations specified by Cabinet Order apply by deeming that it was made by means of a tax return, etc. in which the matters stated in a return are stated, or by attaching thereto attached documents in which the matters stated in attached documents are stated.

A filing under paragraph (1) made pursuant to the provisions of that paragraph is deemed to have reached the district director at the time when it is recorded in a file kept on the computer used by the National Tax Agency referred to in that paragraph.

In the case referred to in paragraph (1), with respect to the entry of the name and corporate number (meaning the corporate number prescribed in Article 2, paragraph (16) (Definitions) of the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (Act No. 27 of 2013)) under the provisions of Article 124 of the Act on General Rules for National Taxes, the business operator referred to in paragraph (1) must, notwithstanding the provisions of Article 124 of that Act, take measures to make its name clear in place of that entry, as provided by Ministry of Finance Order.

Where a business operator referred to in paragraph (1) of the preceding Article is found to have difficulty using an electronic data processing system due to a failure of a telecommunications line, a disaster or any other reason, and is found to be able to submit a tax return, etc. without applying the provisions of that paragraph, and has obtained the approval of the district director having jurisdiction over its place for tax payment to submit the tax return, etc. without applying the provisions of that paragraph, the provisions of the preceding Article do not apply to a filing under that paragraph made within the period designated by that district director.

A business operator that intends to obtain the approval referred to in the preceding paragraph must submit to the district director having jurisdiction over its place for tax payment a written application stating the circumstances that have made it necessary to be subject to the application of the provisions of that paragraph, the period for which it seeks to be designated under the provisions of that paragraph, and other matters specified by Ministry of Finance Order, with the documents specified by Ministry of Finance Order attached, by the day 15 days before the first day of that period (or, where the day on which the reason prescribed in the preceding paragraph arose is on or after the day 15 days before the deadline for filing the return under the provisions of Article 45, paragraph (1) (for a return under the provisions of Article 46, paragraph (1), the deadline for filing that would apply if that return were a return under the provisions of Article 45, paragraph (1)), and that deadline for filing falls within that period, by that first day).

In the case where a written application referred to in the preceding paragraph has been submitted, when the district director finds the circumstances referred to in that paragraph pertaining to the application to be inappropriate, they may deny the application.

Where the district director, upon the submission of the written application referred to in paragraph (2), makes a disposition of approval or denial of the application, the district director notifies the business operator that made the application to that effect in writing.

In the case where a written application referred to in paragraph (2) has been submitted, when no disposition of approval or denial has been made by the first day of the period, stated in the written application, for which the designation under the provisions of paragraph (1) is sought, it is deemed that the approval was given on that day and that the designation under the provisions of that paragraph was made with that period as the period referred to in that paragraph.

Where the district director finds that it is no longer difficult for a business operator to which the provisions of paragraph (1) apply to use an electronic data processing system, the district director may revoke the approval referred to in that paragraph. In this case, when the disposition of revocation has been made, the effect of that disposition is to arise for the period on or after the day following the day on which the disposition was made.

When the district director makes the disposition referred to in the preceding paragraph, the district director notifies the business operator subject to that disposition to that effect in writing.

A business operator to which the provisions of paragraph (1) apply must, when it intends to cease to be subject to the application of the provisions of paragraph (1) with respect to a filing under paragraph (1) of the preceding Article, submit a written notification stating that fact and other matters specified by Ministry of Finance Order to the district director having jurisdiction over its place for tax payment. In this case, when the written notification has been submitted, the disposition of approval under paragraph (1) is to cease to be effective for the period on or after the day following the day on which it was submitted.

A person who intends to take out of a bonded area taxable goods to which the self-assessment system prescribed in Article 6-2, paragraph (1), item (i) (Method of Determining the Amount of Tax) of the Customs Act applies must, except in a case where the consumption tax on that taking out is to be exempted under the provisions of other Acts or treaties, submit to the director-general of a customs house a return stating the following matters:

the name of the taxable goods taken out, and, for each name, the quantity, the amount of the tax base (referred to in the following item as the "tax base amount") and the tax rate;

the amount of consumption tax on the tax base amount and the total of those amounts of consumption tax;

the basis of the calculation of the amount listed in the preceding two items and any other matters as specified by Ministry of Finance Order.

A person who intends to take out of a bonded area taxable goods to which the official assessment system prescribed in Article 6-2, paragraph (1), item (ii) of the Customs Act applies must, except in a case where the consumption tax on that taking out is to be exempted under the provisions of other Acts or treaties, submit to the director-general of a customs house a return stating the matters set forth in item (i) of the preceding paragraph relating to the taxable goods taken out and other matters specified by Ministry of Finance Order.

Where a person prescribed in paragraph (1) makes a special declaration prescribed in Article 7-2, paragraph (2) (Special Declaration) of the Customs Act for the taxable goods taken out, the deadline for filing the return under paragraph (1) for those taxable goods is the last day of the month following the month that includes the day on which those taxable goods are taken out.

A person who has submitted an interim return must, where there is an amount set forth in Article 42, paragraph (1), item (i), paragraph (4), item (i) or paragraph (6), item (i) that is stated in that return (or, where the person has submitted an interim return stating the matters set forth in the items of Article 43, paragraph (1), the amount set forth in item (iv) of that paragraph), pay to the national government consumption tax equivalent to that amount by the deadline for filing that return.

A person who has submitted a return under the provisions of Article 45, paragraph (1) must, where there is an amount of consumption tax set forth in item (iv) of that paragraph that is stated in that return (or, in a case falling under item (vi) of that paragraph, the amount of consumption tax set forth in that item), pay to the national government consumption tax equivalent to that amount of consumption tax by the deadline for filing that return.

A person who has submitted a return under the provisions of Article 47, paragraph (1) must pay to the national government, by the time of taking out of a bonded area the taxable goods relating to that filing (or, in the case of paragraph (3) of that Article, by the deadline for filing that return), consumption tax equivalent to the total of the amounts of consumption tax set forth in paragraph (1), item (ii) of that Article that are stated in that return.

Consumption tax on taxable goods prescribed in Article 47, paragraph (2) that are taken out of a bonded area is collected at the time of that taking out by the director-general of a customs house referred to in that paragraph.

Where a person who intends to take out of a bonded area taxable goods to which the self-assessment system prescribed in Article 6-2, paragraph (1), item (i) (Method of Determining the Amount of Tax) of the Customs Act (referred to as the "self-assessment system" in the following paragraph) applies (excluding a person who submits a special return for those taxable goods (referred to as a "special filer" in Article 58); the same applies in the following paragraph) has submitted a return under the provisions of Article 47, paragraph (1), and, with respect to the due date for payment of all or part of the total of the amounts of consumption tax set forth in item (ii) of that paragraph that are stated in that return, has submitted to the director-general of a customs house referred to in that paragraph a written application stating that the person wishes to obtain an extension thereof, and has also provided to that director-general of a customs house security in an amount equivalent to all or part of that total amount of consumption tax, that director-general of a customs house may, with respect to the consumption tax on those taxable goods, notwithstanding the provisions of paragraph (1) of the preceding Article, extend the due date for payment by up to three months, to the extent that the amount of that consumption tax does not exceed the amount of the security so provided.

Where a person who intends to take out of a bonded area taxable goods to which the self-assessment system applies has, with respect to the due date for payment of the consumption tax to be imposed when taking taxable goods out of a bonded area in the month (hereinafter in this paragraph referred to as the "specified month"), submitted to the director-general of a customs house with whom the person submits the return under the provisions of Article 47, paragraph (1) for those taxable goods, by the last day of the month preceding the specified month, a written application stating that the person wishes to obtain an extension thereof, and has also provided to that director-general of a customs house security in an amount equivalent to the total of the amounts of consumption tax on those taxable goods, that director-general of a customs house may, with respect to the consumption tax on the taxable goods that the person takes out in the specified month, notwithstanding the provisions of paragraph (1) of the preceding Article, extend the due date for payment to a date within three months from the day following the last day of the specified month, to the extent that the cumulative total of the amount of consumption tax in the specified month does not exceed the amount of the security so provided.

Where an authorized importer (meaning an authorized importer prescribed in Article 7-2, paragraph (1) (Special Provisions on Declaration) of the Customs Act; the same applies hereinafter in this paragraph) has submitted a special return by its deadline for filing, and, with respect to the due date for payment of all or part of the total of the amounts of consumption tax set forth in Article 47, paragraph (1), item (ii) that are stated in that special return, has submitted to the director-general of a customs house referred to in that paragraph, by the deadline for filing that special return, a written application stating that the authorized importer wishes to obtain an extension thereof, that director-general of a customs house may, with respect to the consumption tax on the relevant taxable goods, notwithstanding the provisions of paragraph (1) of the preceding Article, extend the due date for payment by up to two months. In this case, where the director-general of a customs house finds it necessary for the preservation of the consumption tax, the director-general may, as provided by Cabinet Order, order the authorized importer to provide security in an amount equivalent to all or part of the amount of consumption tax stated in that special return.

Where an authorized commissioning importer prescribed in Article 7-2, paragraph (1) of the Customs Act has submitted a special return by its deadline for filing, and, with respect to the due date for payment of all or part of the total of the amounts of consumption tax set forth in Article 47, paragraph (1), item (ii) that are stated in that special return, has submitted to the director-general of a customs house referred to in that paragraph, by the deadline for filing that special return, a written application stating that the authorized commissioning importer wishes to obtain an extension thereof, and has also provided to that director-general of a customs house security in an amount equivalent to all or part of that total amount of consumption tax, that director-general of a customs house may, with respect to the consumption tax on the relevant taxable goods, notwithstanding the provisions of paragraph (1) of the preceding Article, extend the due date for payment by up to two months, to the extent that the amount of that consumption tax does not exceed the amount of the security so provided.

Where a return under the provisions of Article 45, paragraph (1) or Article 46, paragraph (1) has been submitted, and a shortfall set forth in Article 45, paragraph (1), item (v) is stated in those returns, the district director refunds consumption tax equivalent to that shortfall to the person who submitted those returns.

Where interest on refund (meaning interest on refund prescribed in Article 58, paragraph (1) (Interest on Refund) of the Act on General Rules for National Taxes; the same applies hereinafter in this Chapter) is calculated for a refund under the provisions of the preceding paragraph, the period under Article 58, paragraph (1) of that Act that is the basis of the calculation is, according to which of the returns listed in the following items the return relating to that refund falls under, the period from the day following the deadline or day specified in the relevant item until the day on which the decision to pay for that refund is made or the day on which appropriation (meaning appropriation under Article 57, paragraph (1) (Appropriation) of that Act; the same applies hereinafter in this Chapter) is made of that refund (or, where there is a day before that day on which it became suitable to make the appropriation, that day on which it became suitable).

a return under the provisions of Article 45, paragraph (1) (limited to one submitted by the deadline for filing that return): the deadline for filing that return;

a return under the provisions of Article 45, paragraph (1) (excluding one submitted by the deadline for filing that return): the last day of the month that includes the day on which that return was submitted;

a return under the provisions of Article 46, paragraph (1): the last day of the month that includes the day on which that return was submitted (where that return was submitted before the day on which two months have elapsed from the day following the last day of the taxable period relating to that return, the day on which those two months have elapsed).

Where appropriation of a refund under the provisions of paragraph (1) is made to unpaid consumption tax for the taxable period relating to the return prescribed in that paragraph, no interest on refund is to be added to the amount so appropriated out of that refund, and delinquent tax and interest tax are to be exempted with respect to the portion of consumption tax so appropriated.

Beyond what is provided for in the preceding two paragraphs, procedures for a refund set forth in paragraph (1), methods for the appropriation of a refund (including interest on refund related thereto) pursuant to the provisions of the paragraph, and other necessary matters concerning the application of the provisions of the paragraph are specified by Cabinet Order.

Where, from a person who has submitted an interim return, a return under the provisions of Article 45, paragraph (1) or Article 46, paragraph (1) has been submitted for the taxable period relating to that interim return, and a shortfall set forth in Article 45, paragraph (1), item (vii) is stated in those returns, the district director refunds the interim payment equivalent to that shortfall to the person who submitted those returns.

In the case where the district director makes a refund pursuant to the provisions of the preceding paragraph, when any delinquent tax has been paid with regard to the amount of interim payment pertaining to the interim return set forth in the paragraph, they also refund the amount calculated, as specified by Cabinet Order, as the portion of the delinquent tax that corresponds to the amount of interim payment to be refunded pursuant to the provisions of the paragraph.