Consumption Tax Act

seller of specified low-value assets: a business operator that has received registration under Article 57-7, paragraph (1);

transfer of specified low-value assets: among transfers, etc. of assets, the transfer, by a method specified by Cabinet Order as a mail-order method, of an asset located outside Japan (limited to an asset for which the amount of consideration per asset (meaning the amount of all money, anything other than money, or rights or other economic benefits received or to be received as consideration, and not including an amount equivalent to the amount of consumption tax to be imposed on the transfer of that asset and the amount of local consumption tax to be imposed with that amount of consumption tax as the tax base) is 10,000 yen or less and which is dispatched from outside Japan to Japan);

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 of a transfer of specified low-value assets, that transfer, etc. of assets is to be regarded as having been conducted in Japan, and 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.

A tax-free shop prescribed in paragraphs (1) through (5) is a sales outlet operated by a business operator that satisfies all of the following requirements (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of the following Article) (excluding a temporary sales outlet prescribed in paragraph (9)), for which permission has been obtained, as provided by Cabinet Order, from the district director having jurisdiction over the business operator's place for tax payment as a sales outlet capable of transferring to persons eligible for tax-free purchase tax-exempt goods that are purchased by the method specified by Cabinet Order prescribed in paragraph (1):

Among taxable goods taken out of a bonded area, consumption tax is exempted for those pertaining to a transfer of specified low-value assets (excluding those on which consumption tax is not to be imposed pursuant to the provisions of Article 6, paragraph (1); the same applies in the following paragraph) made by a seller of specified low-value assets.

The provisions of the preceding paragraph do not apply unless it has been proved, by noting the following matters in the import declaration for those taxable goods under the provisions of Article 67 (Permission for Export or Import) of the Customs Act (or, for goods subject to special declaration prescribed in Article 7-2, paragraph (2) (Special Provisions on Declaration) of that Act, in the special return prescribed in paragraph (1) of that Article), that those taxable goods are goods pertaining to a transfer of specified low-value assets made by a seller of specified low-value assets:

the registration number under Article 57-7, paragraph (4) of the seller of specified low-value assets that made the transfer of specified low-value assets pertaining to those taxable goods;

a statement to the effect that those taxable goods pertain to a transfer of specified low-value assets.

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 and a seller of specified low-value assets), 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.

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 or a seller of specified low-value assets 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.

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 and Article 57-7 do not apply to a trustee business operator.

Application of This Act to the Supply of Telecommunications Services Conducted via a SpecifiedType 1 Platform Operator

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 supplytransfers, etc. of telecommunications servicesassets so that persons other than the person providing the venue can supply telecommunications services conduct transfers, etc. of assets via the venue; the same applies hereafter in this Article and the following Article), and the consideration for it is received via a specified Type 1 platform operator (meaning, among business operators that provide that digital platform (referred to as "platform operators" in the following paragraph and the following Article), 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 specifiedType 1 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 servicesa transfer, etc. of assets 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) and the following Article) 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 the following Article) 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 Type 1 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 itsthe taxable period referred to in the preceding paragraph (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 specifiedType 1 platform operator on the last day of that taxable period.

When the Commissioner of the National Tax Agency has designated a specified Type 1 platform operator under paragraph (2), the Commissioner is to notify that specified Type 1 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 specifiedType 1 platform operator and other matters specified by Cabinet Order.

A specifiedType 1 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 specifiedType 1 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 specifiedType 1 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.

A business operator whose designation as a specified Type 1 platform operator has been lifted pursuant to the preceding paragraph is deemed to continue to be a specifiedType 1 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 specifiedType 1 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 Type 1 platform operator under paragraph (2) if the Commissioner finds that the specifiedType 1 platform operator falls under any of the following facts:

When the Commissioner of the National Tax Agency has lifted the designation of a specifiedType 1 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 specifiedType 1 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 Type 1 platform operator to which paragraph (1) applies, in Article 9, paragraph (1), the phrase "excludingand a qualified invoice issuerseller of specified low-value assets" is deemed to be replaced with "excluding, a qualified invoice issuer seller of specified low-value assets and a specified Type 1 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 specifiedType 1 platform operator prescribed in Article 15-2, paragraph (1) to which that paragraph applies".

A specified Type 1 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; the same applies in paragraph (16) of the following Article) 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 specifiedType 1 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 any of the transfers of assets set forth in the following items is conducted via a digital platform, and the consideration for it is received via a platform operator that provides that digital platform and that has been designated by the Commissioner of the National Tax Agency pursuant to the provisions of the following paragraph (hereinafter in this Article referred to as a "Type 2 platform operator"), the provisions of this Act apply deeming that the Type 2 platform operator has made that transfer of assets:

a transfer of assets conducted in Japan by a foreign business operator (including transfers, etc. of assets conducted incidentally thereto, and excluding those that fall under a transfer of specified low-value assets);

a transfer of specified low-value assets made by a business operator.

The Commissioner of the National Tax Agency is to designate a platform operator, as a business operator deemed under the preceding paragraph to have made the transfers of assets set forth in the items of that paragraph, if, in the taxable period of the platform operator, the total of the amounts of consideration for the transfers of assets set forth in the items of the preceding paragraph that are conducted via the digital platform it provides, 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 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 Type 2 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 the taxable period prescribed in the preceding paragraph (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 Type 2 platform operator on the last day of that taxable period.

When the Commissioner of the National Tax Agency has designated a Type 2 platform operator under paragraph (2), the Commissioner is to notify that Type 2 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 Type 2 platform operator and other matters specified by Cabinet Order.

A Type 2 platform operator that has received the notice under the preceding paragraph is to promptly notify the business operator pertaining to the transfers of assets set forth in the items of paragraph (1) to which the provisions of that paragraph are to apply that the provisions of that paragraph are to apply, and the date thereof.

A Type 2 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 Type 2 platform operator may, where the total of the amounts of consideration for the transfers of assets set forth in the items of paragraph (1) to which the provisions of that paragraph apply 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 Type 2 platform operator has been lifted pursuant to the preceding paragraph is deemed to continue to be a Type 2 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 Type 2 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 Type 2 platform operator under paragraph (2) if the Commissioner finds that the Type 2 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 Type 2 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 Type 2 platform operator is to promptly notify the business operator pertaining to the transfers of assets set forth in the items of paragraph (1) to which the provisions of that paragraph 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 Type 2 platform operator to which paragraph (1) applies, in Article 9, paragraph (1), the phrase "and a seller of specified low-value assets" is deemed to be replaced with ", a seller of specified low-value assets and a Type 2 platform operator prescribed in Article 15-3, 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 Type 2 platform operator prescribed in Article 15-3, paragraph (1) to which that paragraph applies".

A Type 2 platform operator to which paragraph (1) applies may, after obtaining in advance the consent of the foreign business operator referred to in item (i) of that paragraph, apply the provisions of Article 30 by deeming that, of the taxable purchases made in Japan by that foreign business operator and the taking of taxable goods out of a bonded area made by that foreign business operator, those required solely for the transfers of assets set forth in that item that are deemed under the provisions of that paragraph to have been made by the Type 2 platform operator were made by that Type 2 platform operator.

A Type 2 platform operator must attach to the return under Article 45, paragraph (1) for its taxable period 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 Type 2 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.

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 Article 8-2, paragraph (1) or 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).

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 that fall under a transfer of specified low-value assets and 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 (excluding that relating to a transfer of specified low-value assets) (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);

Deduction of the Amount of Consumption Tax Where Consumption Tax Is Imposed on Taxable Goods Pertaining to a Transfer of Specified Low-Value Assets

No English for the wording before the change.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1)) has made a transfer of specified low-value assets (excluding those on which consumption tax is not to be imposed pursuant to the provisions of Article 6, paragraph (1); the same applies hereinafter in this Article) and consumption tax has been imposed on the taxable goods pertaining to that transfer of specified low-value assets upon their being taken out of a bonded area (hereinafter in this Article referred to as the "case where consumption tax is imposed on taxable goods"), the total of the amounts of consumption tax pertaining to the transfer of specified low-value assets pertaining to those taxable goods (meaning the amount calculated by multiplying the amount of consideration for that transfer of specified low-value assets (meaning the amount of consideration prescribed in Article 28, paragraph (1)) by 7.8/100 (or by 6.24/100 where that transfer of specified low-value assets is a taxable transfer, etc. of assets subject to the reduced rate); the same applies in the following paragraph) is to be deducted from the consumption tax on the tax base amount for the taxable period that includes the day on which the case where consumption tax is imposed on taxable goods came to apply.

No English for the wording before the change.

The provisions of the preceding paragraph do not apply, where a business operator does not retain the documents set forth in Article 30, paragraph (9), item (v) pertaining to the relevant taxable goods, to the amount of consumption tax pertaining to the transfer of specified low-value assets for which there is no such retention; provided, however, that this does not apply where that business operator proves that it was unable to make that retention due to a disaster or other unavoidable circumstances.

Where a business operator (excluding a business operator exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1)) makes a taxable purchase pertaining to a transfer of specified low-value assets to which the provisions of paragraph (1) have been applied, the provisions of Article 30, paragraph (1) do not apply to the amount of consumption tax pertaining to that taxable purchase.

Where an heir who has succeeded to the business of the decedent by inheritance comes to fall under the case where consumption tax is imposed on taxable goods with respect to a transfer of specified low-value assets made by the decedent, the preceding three paragraphs apply, deeming that the heir has come to fall under the case where consumption tax is imposed on taxable goods with respect to a transfer of specified low-value assets made by that heir.

The provisions of the preceding paragraph apply mutatis mutandis where a merging corporation that has succeeded to a business by merger comes to fall under the case where consumption tax is imposed on taxable goods with respect to a transfer of specified low-value assets made by the merged corporation, or where a successor corporation in a company split that has succeeded to a business by a split comes to fall under the case where consumption tax is imposed on taxable goods with respect to a transfer of specified low-value assets made by the splitting corporation.

Beyond what is provided for in the preceding three paragraphs, matters concerning the retention of the documents prescribed in paragraph (2) and other matters necessary for the application of the provisions of paragraph (1) are specified by Cabinet Order.

the total of the amounts of consumption tax set forth in Article 45, paragraph (1), item (iii), (a) through (de) 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 pertaining to the transfer of specified low-value assets pertaining to taxable goods prescribed in Article 40, paragraph (1);

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 Article 8-2, paragraph (1) or other Acts or treaties, submit to the director-general of a customs house a return stating the following matters:

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 Article 8-2, paragraph (1) or 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.

In the case where the business operator is a business operator other than a specified foreign business operator (meaning a foreign business operator that has no office, place of business or other equivalent facility in Japan in connection with transfers, etc. of assets conducted in Japan; the same applies in the following itemhereinafter in this Article and the following paragraphArticle 57-7): any of the following facts:

There is no tax representative prescribed in Article 74-9, paragraph (3), item (ii) (Advance Notice of Examination to Persons Liable for Tax, etc.) of the Act on General Rules for National Taxes who has authority for tax agency regarding consumption tax (meaning the tax agency listed in Article 2, paragraph (1), item (i) (Services of Certified Public Tax Accountants) of the Certified Public Tax Accountant Act (Act No. 237 of 1951); the same applies in item (ii), (c) of the following paragraph and Article 57-7, paragraph (5), item (ii), (a));

The business operator is a person whose registration under paragraph (1)for whom one year has been revoked undernot elapsed since the following paragraph (limited to the case where the business operator fellday on which it was subjected to revocation of registration under any of paragraph (1) under the facts listed in following paragraph (limited to revocation relating to either item (ii), (e) or (f) of the following paragraph), and for whom one year has not elapsed since the date of the revocation;

By the deadline for filing the return of the qualified invoice issuer under Article 45, paragraph (1), no document certifying authority for tax agency regarding the consumption tax relating to that return (meaning the document prescribed in Article 30 (Indication of Authority for Tax Agency) of the Certified Public Tax Accountant Act (including as applied mutatis mutandis pursuant to Article 48-16 (Application Mutatis Mutandis of Provisions on Rights and Obligations of Certified Public Tax Accountants) of that Act); the same applies in Article 57-7, paragraph (6), item (ii), (d)) has been submitted;

A qualified invoice issuer may, in place of delivering a qualified invoice, qualified simplified invoice or qualified return invoice, provide electronic or magnetic records relating to the matters to be stated in those documents (meaning electronic or magnetic records prescribed in Article 2, item (iii) (Definitions) of the Act on Special Provisions concerning Preservation Methods for Books and Documents Related to National Tax Prepared by Means of Computers; the same applies hereinafter through Article 57-657-9). In this case, where there is an error in the matters provided as those electronic or magnetic records, the provisions of the preceding paragraph apply mutatis mutandis.

A business operator that makes or intends to make a transfer of specified low-value assets (excluding those on which consumption tax is not imposed pursuant to the provisions of Article 6, paragraph (1); the same applies hereinafter in this paragraph), and that intends, with respect to the taxable goods pertaining to that transfer of specified low-value assets, to have another person take those taxable goods out of a bonded area under Article 8-2, paragraph (1) (excluding a business operator exempted from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1)), may obtain registration from the district director.

A business operator that intends to obtain the registration under the preceding paragraph must submit a written application stating the matters specified by Ministry of Finance Order to the district director with jurisdiction over its place for tax payment.

Upon receiving the submission of the written application under the preceding paragraph, the district director must examine it without delay and, except where registration is refused pursuant to the provisions of paragraph (5), make the registration under paragraph (1).

The registration under paragraph (1) is to be made by entering the name, the registration number, and other matters specified by Cabinet Order in the Register of Sellers of Specified Low-Value Assets. In this case, the district director must, as specified by Cabinet Order, promptly publish the matters entered in that Register of Sellers of Specified Low-Value Assets.

The district director may refuse the registration under paragraph (1) if the director finds that a business operator that intends to obtain that registration falls under the facts prescribed in the following items for the categories of cases set forth in those items.

In the case where the business operator is a business operator other than a specified foreign business operator: any of the following facts:

That business operator (limited to a person to whom Article 117, paragraph (1) (Tax Agent) of the Act on General Rules for National Taxes applies) has not submitted a notification of a tax agent under paragraph (2) of that Article;

That business operator is a person for whom one year has not elapsed from the day on which the registration under paragraph (1) was cancelled (limited to cancellation pertaining to item (i), (f) of the following paragraph) pursuant to the provisions of the following paragraph;

That business operator is a person for whom two years have not elapsed from the day on which that business operator, having been sentenced to a fine or a heavier punishment for violating the provisions of this Act, finished serving the sentence or ceased to be subject to its execution.

In the case where the business operator is a specified foreign business operator: any of the following facts:

There is no tax representative prescribed in Article 74-9, paragraph (3), item (ii) (Advance Notice of Examination to Persons Liable for Tax, etc.) of the Act on General Rules for National Taxes who has the authority for tax agency with respect to consumption tax;

That business operator has not submitted a notification of a tax agent under Article 117, paragraph (2) of the Act on General Rules for National Taxes;

There are currently arrears of national taxes, and the collection of the amount of taxes in arrears is extremely difficult;

That business operator is a person for whom one year has not elapsed from the day on which the registration under paragraph (1) was cancelled (limited to cancellation pertaining to any of item (ii), (f) through (h) of the following paragraph) pursuant to the provisions of the following paragraph;

That business operator is a person for whom two years have not elapsed from the day on which that business operator, having been sentenced to a fine or a heavier punishment for violating the provisions of this Act, finished serving the sentence or ceased to be subject to its execution.

The district director may cancel the registration under paragraph (1) pertaining to a seller of specified low-value assets set forth in the following items if the director finds that the seller falls under the facts prescribed in those items.

A seller of specified low-value assets that is a business operator other than a specified foreign business operator: any of the following facts:

The whereabouts of that seller of specified low-value assets have been unknown for one year or more;

It is found that that seller of specified low-value assets has discontinued its business;

It is found that that seller of specified low-value assets (limited to an individual business operator) has died;

It is found that that seller of specified low-value assets (limited to a corporation) has ceased to exist by merger;

That seller of specified low-value assets (limited to a person to whom Article 117, paragraph (1) of the Act on General Rules for National Taxes applies) has not submitted a notification of a tax agent under paragraph (2) of that Article;

It is found that that seller of specified low-value assets has, with respect to assets other than the assets pertaining to the transfer of specified low-value assets, delivered or provided the purchase invoice, etc. prescribed in Article 57-9 to an importer, etc. prescribed in that Article, or notified an importer, etc. prescribed in that Article of the registration number under paragraph (4) and the matters prescribed in that Article;

That seller of specified low-value assets has been sentenced to a fine or a heavier punishment for violating the provisions of this Act;

That seller of specified low-value assets is a person that, having submitted the written application under paragraph (2) with false statements as to matters concerning the facts set forth in item (i) of the preceding paragraph, has obtained the registration under paragraph (1) on the basis of that application.

A seller of specified low-value assets that is a specified foreign business operator: any of the following facts:

It is found that that seller of specified low-value assets has discontinued its business;

It is found that that seller of specified low-value assets (limited to an individual business operator) has died;

It is found that that seller of specified low-value assets (limited to a corporation) has ceased to exist by merger;

A document certifying that a person has authority for tax agency with respect to the consumption tax pertaining to the return of that seller of specified low-value assets under Article 45, paragraph (1) has not been submitted by the deadline for filing of that return;

That seller of specified low-value assets (limited to a person to whom Article 117, paragraph (1) of the Act on General Rules for National Taxes applies) has not submitted a notification of a tax agent under paragraph (2) of that Article;

It is found that that seller of specified low-value assets has, with respect to assets other than the assets pertaining to the transfer of specified low-value assets, delivered or provided the purchase invoice, etc. prescribed in Article 57-9 to an importer, etc. prescribed in that Article, or notified an importer, etc. prescribed in that Article of the registration number under paragraph (4) and the matters prescribed in that Article;

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;

There are currently arrears of national taxes, and the collection of the amount of taxes in arrears is extremely difficult;

That seller of specified low-value assets has been sentenced to a fine or a heavier punishment for violating the provisions of this Act;

That seller of specified low-value assets is a person that, having submitted the written application under paragraph (2) with false statements as to matters concerning the facts set forth in item (ii) of the preceding paragraph, has obtained the registration under paragraph (1) on the basis of that application.

When the district director makes the registration under paragraph (1) or the dispositions under the preceding two paragraphs, the district director is to notify the business operator pertaining to the registration or disposition to that effect in writing.

A seller of specified low-value assets must, when there has been a change in the matters entered in the Register of Sellers of Specified Low-Value Assets prescribed in paragraph (4), promptly submit a written notification to that effect to the district director having jurisdiction over its place for tax payment.

Upon receiving the submission of the written notification under the preceding paragraph, the district director is to, without delay, enter the matters pertaining to that notification in the Register of Sellers of Specified Low-Value Assets and register the change. In this case, the district director must, as specified by Cabinet Order, promptly publish the matters entered in the Register of Sellers of Specified Low-Value Assets after the change.

Where a seller of specified low-value assets has come to fall under any of the cases set forth in the following items, the registration under paragraph (1) ceases to be effective on the day prescribed in the relevant item:

In the case where that seller of specified low-value assets has submitted to the district director having jurisdiction over its place for tax payment a written notification to the effect that it seeks the cancellation of the registration under paragraph (1): the day following the last day of the taxable period that includes the day on which the notification was submitted (or, where the notification was submitted during the period from the day following the day specified by Cabinet Order to the last day of that taxable period, the day following the last day of the taxable period following that taxable period);

In the case where that seller of specified low-value assets has discontinued its business (limited to the case where, pursuant to the provisions of Article 57, paragraph (1), it has submitted a written notification stating that it has come to fall under the case set forth in item (iii) of that paragraph): the day following the day on which it discontinued its business;

In the case where an individual business operator that is that seller of specified low-value assets has died (limited to the case where, pursuant to the provisions of Article 57, paragraph (1), a written notification has been submitted stating that the seller has come to fall under the case set forth in item (iv) of that paragraph): the day following the day on which that individual business operator died;

In the case where a corporation that is that seller of specified low-value assets has ceased to exist by merger (limited to the case where, pursuant to the provisions of Article 57, paragraph (1), a written notification has been submitted stating that the seller has come to fall under the case set forth in item (v) of that paragraph): the day on which that corporation ceased to exist by merger.

When the district director has cancelled a registration pursuant to the provisions of paragraph (6), or when a registration under paragraph (1) has ceased to be effective pursuant to the provisions of the preceding paragraph, the district director must delete that registration. In this case, the district director must, as specified by Cabinet Order, promptly publish the fact that the registration has been cancelled or has ceased to be effective, and the date thereof.

In addition to what is provided for in the preceding paragraphs, matters necessary for the application of the provisions of this Article are specified by Cabinet Order.

A seller of specified low-value assets that has made a transfer of specified low-value assets (excluding those on which consumption tax is not to be imposed pursuant to the provisions of Article 6, paragraph (1); the same applies hereinafter in this Article) must state or record the following matters in the purchase invoice or other documents (including electronic or magnetic records; referred to as "purchase invoice, etc." in the following Article) pertaining to the dispatch of the assets pertaining to that transfer of specified low-value assets, and must notify those matters to the person who intends to import the assets pertaining to that transfer of specified low-value assets or to the customs broker (meaning a customs broker prescribed in Article 2, item (iii) (Definitions) of the Customs Business Act (Act No. 122 of 1967); the same applies in the following Article) who acts as that person's agent in the import declaration under the provisions of Article 67 (Permission for Export or Import) of the Customs Act:

the registration number of that seller of specified low-value assets under paragraph (4) of the preceding Article;

a statement to the effect that the assets fall under the assets pertaining to that transfer of specified low-value assets.

With respect to assets other than the assets pertaining to a transfer of specified low-value assets made by a seller of specified low-value assets, the person who transfers those assets, the person who dispatches those assets from outside Japan to Japan, the person who commissions the import of those assets, and other persons concerned must not deliver or provide, to the person who intends to import those assets and the customs broker who acts as that person's agent in the import declaration under the provisions of Article 67 (Permission for Export or Import) of the Customs Act (hereinafter in this Article referred to as an "importer, etc."), a purchase invoice, etc. bearing an indication that may cause those assets to be mistaken for assets pertaining to a transfer of specified low-value assets made by a seller of specified low-value assets (for an electronic or magnetic record, including the recording of that indication), or notify an importer, etc. of the registration number set forth in item (i) of the preceding Article or a number that may be mistaken for that registration number and the matters set forth in item (ii) of that Article.

A business operator (excluding a business operator whose obligation to pay consumption tax is exempted under the provisions of the main clause of Article 9, paragraph (1)) or a special filer is to, as provided by Cabinet Order, keep books, record in them the matters concerning the transfers, etc. of assets, taxable purchases, or taking out of taxable goods (excluding those for which consumption tax is exempted under the provisions of Article 8-2, paragraph (1) or other laws or treaties; the same applies in Article 60) from a bonded area that it has carried out, and retain those books.

With respect to a business conducted as operations relating to the general account of the national government or a local government that is deemed under paragraph (1) to be a business conducted by a single corporation, the total amount of consumption tax that may be deducted from the consumption tax on the tax base amount for the taxable period under the provisions of Articles 30 to 3940 is, notwithstanding those provisions, deemed to be the same as that consumption tax on the tax base amount.

when a person, in violation of the provisions of Article 57-9, has delivered or provided the purchase invoice, etc. prescribed in that Article, or has notified the registration number prescribed in that Article or a number that may be mistaken for a registration number, and the matters prescribed in that Article.