①Where 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.

②Where 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.

③The 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.

④The 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.

①Where 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.

②The 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.

③Where 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.

④The provisions of paragraph (2) apply mutatis mutandis to an individual business operator or corporation to which the provisions of the preceding paragraph apply.

⑤Where 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.