Consumption Tax Act

Where a qualified invoice issuer (limited to an individual business operator; the same applies hereinafter in this Article) dies, notwithstanding the provisions of Article 57, paragraph (1), the person specified in item (iv) of that paragraph must promptly submit a written notification stating that the case set forth in that item has come to apply to the district director having jurisdiction over the place for tax payment of that qualified invoice issuer.

The registration under paragraph (1) of the preceding Article upon the death of a qualified invoice issuer ceases to be effective, except where the following paragraph applies, on the earlier of the day following the day on which the written notification under the provisions of the preceding paragraph is submitted and the day on which four months have elapsed from the day following the day of that death.

For the period from the day following the day of the inheritance of an heir who has succeeded to the business of a qualified invoice issuer by inheritance (excluding a qualified invoice issuer) until the earlier of the day preceding the day on which that heir received the registration under paragraph (1) of the preceding Article and the day on which four months have elapsed from the day following the day on which the qualified invoice issuer concerned in that inheritance died (referred to as the "deemed registration period" in the following paragraph), the provisions of this Act (excluding paragraph (10) of that Article (limited to the part relating to item (i))) apply by deeming that heir to be a business operator that received the registration under paragraph (1) of that Article. In this case, during that deemed registration period, the registration number prescribed in paragraph (4) of that Article relating to that qualified invoice issuer is deemed to be the registration number of that heir.

The registration under paragraph (1) of the preceding Article relating to the decedent of an heir to whom the provisions of the preceding paragraph have applied ceases to be effective on or after the day following the last day of the deemed registration period of that heir.

When the registration under paragraph (1) of the preceding Article has ceased to be effective pursuant to the provisions of paragraph (2) or the preceding paragraph, the district director must cancel that registration. In this case, the district director must promptly publish, as provided by Cabinet Order, the fact that the registration has ceased to be effective and the date thereof.

Matters necessary for the application of the provisions of this Article, including the adjustment of the amount of consumption tax on inventory where the business of a qualified invoice issuer is succeeded to, are specified by Cabinet Order.

Where a qualified invoice issuer has conducted a taxable transfer, 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; the same applies hereinafter in this Article) (excluding the case deemed to be a transfer of assets under Article 4, paragraph (5), the case where a person is deemed to have conducted a transfer, etc. of assets under Article 17, paragraph (1) or the main clause of paragraph (2), and other cases specified by Cabinet Order), if another business operator that receives that taxable transfer, etc. of assets (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1); the same applies hereinafter in this Article) requests the delivery of an invoice, delivery slip or other similar document stating the following matters (hereinafter through Article 57-6 referred to as a "qualified invoice"), the qualified invoice issuer must deliver the qualified invoice for that taxable transfer, etc. of assets to that other business operator; provided, however, that this does not apply where the qualified invoice issuer conducts a taxable transfer, etc. of assets specified by Cabinet Order as one for which, owing to the nature of the business conducted by the qualified invoice issuer, it is difficult to deliver a qualified invoice:

the name of the qualified invoice issuer and its registration number (meaning the registration number prescribed in Article 57-2, paragraph (4); the same applies in item (i) of the following paragraph and item (i) of paragraph (3));

the date on which the taxable transfer, etc. of assets was conducted (where the document is prepared collectively for taxable transfers, etc. of assets conducted within a certain period within the scope of a taxable period, that certain period);

the particulars of the assets or services relating to the taxable transfer, etc. of assets (where that taxable transfer, etc. of assets is a taxable transfer, etc. of assets subject to the reduced rate, the particulars of the assets and the fact that it is a taxable transfer, etc. of assets subject to the reduced rate);

the total amount, classified by each different tax rate, of the tax-exclusive price (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 not including the amount of consumption tax to be imposed on the taxable transfer, etc. of assets or an 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 in item (iv) of the following paragraph and item (iv) of paragraph (3)) or the tax-inclusive price (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 the amount of consumption tax to be imposed on the taxable transfer, etc. of assets and an 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 in item (iv) of the following paragraph and item (iv) of paragraph (3)) relating to the taxable transfer, etc. of assets, and the applicable tax rate (meaning the rate obtained by multiplying the tax rate prescribed in Article 29, item (i) or (ii) by 100/78; the same applies in item (v) of the following paragraph and item (v) of paragraph (3));

the amount of consumption tax, etc. (meaning the amount calculated by the method specified by Cabinet Order, for each of the amounts totalled by each different tax rate as set forth in the preceding item, as the sum of the amount of consumption tax to be imposed on the taxable transfer, etc. of assets and an amount equivalent to the amount of local consumption tax to be imposed with that amount of consumption tax as its tax base);

the name of the business operator that receives the delivery of the document.

Where the provisions of the main clause of the preceding paragraph apply, if the taxable transfer, etc. of assets conducted in Japan by the qualified invoice issuer referred to in that paragraph relates to retail or any other business specified by Cabinet Order, the qualified invoice issuer may deliver, in place of a qualified invoice, an invoice, delivery slip or other similar document stating the following matters (hereinafter through Article 57-6 referred to as a "qualified simplified invoice"):

the name of the qualified invoice issuer and its registration number;

the date on which the taxable transfer, etc. of assets was conducted;

the particulars of the assets or services relating to the taxable transfer, etc. of assets (where that taxable transfer, etc. of assets is a taxable transfer, etc. of assets subject to the reduced rate, the particulars of the assets and the fact that it is a taxable transfer, etc. of assets subject to the reduced rate);

the total amount, classified by each different tax rate, of the tax-exclusive price or the tax-inclusive price relating to the taxable transfer, etc. of assets;

the amount of consumption tax, etc. (meaning the amount calculated in accordance with the provisions of item (v) of the preceding paragraph) or the applicable tax rate.

A qualified invoice issuer that makes a refund, etc. of consideration for sales (meaning a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1); the same applies hereinafter in this paragraph) must deliver to the other business operator that receives that refund, etc. of consideration for sales an invoice, delivery slip or other similar document stating the following matters (hereinafter in this Article referred to as a "qualified return invoice"); provided, however, that this does not apply where the qualified invoice issuer conducts a taxable transfer, etc. of assets for which, owing to the nature of the business conducted by the qualified invoice issuer, it is difficult to deliver a qualified return invoice upon that refund, etc. of consideration for sales, where the amount of that refund, etc. of consideration for sales is small, or in any other case specified by Cabinet Order:

the name of the qualified invoice issuer and its registration number;

the date on which the refund, etc. of consideration for sales is made and the date on which the taxable transfer, etc. of assets relating to that refund, etc. of consideration for sales was conducted;

the particulars of the assets or services relating to the taxable transfer, etc. of assets relating to the refund, etc. of consideration for sales (where the taxable transfer, etc. of assets relating to that refund, etc. of consideration for sales is a taxable transfer, etc. of assets subject to the reduced rate, the particulars of the assets and the fact that it is a taxable transfer, etc. of assets subject to the reduced rate);

the total amount, classified by each different tax rate, of the tax-exclusive price or the tax-inclusive price relating to the refund, etc. of consideration for sales;

the amount of consumption tax, etc. relating to the amount of the refund, etc. of consideration for sales (meaning the amount calculated in accordance with the provisions of paragraph (1), item (v)) or the applicable tax rate.

A qualified invoice issuer that has delivered a qualified invoice, qualified simplified invoice or qualified return invoice must, where there is an error in the matters stated in those documents, deliver a corrected qualified invoice, qualified simplified invoice or qualified return invoice to the other business operator to which it delivered those documents.

A qualified invoice issuer that has delivered a qualified invoice, qualified simplified invoice or qualified return invoice, or has provided electronic or magnetic records relating to the matters to be stated in those documents, must retain copies of those documents or those electronic or magnetic records, as provided by Cabinet Order. In this case, the retention of those electronic or magnetic records is to be by the method specified by Ministry of Finance Order.

The matters to be stated in qualified invoices, qualified simplified invoices and qualified return invoices, and other matters necessary for the application of the provisions of the preceding paragraphs, are specified by Cabinet Order.

A person other than a qualified invoice issuer must not deliver or provide to another person the documents set forth in item (i) and the electronic or magnetic records set forth in item (iii) (limited to those relating to the matters stated in the documents set forth in item (i)), and a qualified invoice issuer must not deliver or provide to another person the documents set forth in item (ii) and the electronic or magnetic records set forth in item (iii) (limited to those relating to the matters stated in the documents set forth in item (ii)).

documents bearing an indication that is likely to be mistaken for a qualified invoice or qualified simplified invoice prepared by a qualified invoice issuer;

a qualified invoice or qualified simplified invoice containing a false statement;

electronic or magnetic records relating to the matters stated in the documents set forth in item (i) or in the documents set forth in the preceding item.