Consumption Tax Act

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.