①This Act comes into effect as of the date of promulgation, and applies to consumption tax on the transfer, etc. of assets carried out by a business operator in Japan on or after April 1, 1989, on taxable purchases made by a business operator in Japan on or after that day, and on foreign goods taken out of a bonded area on or after that day.

②Notwithstanding the provisions of the preceding paragraph, the provisions of this Act listed in the following items come into effect as of the dates specified respectively in those items:

①In the case where passenger fares, admission fees for places where films or plays are held, or other consideration specified by Cabinet Order for taxable transfers, etc. of assets to unspecified and numerous persons have been received before April 1, 1989 (hereinafter referred to as the "application date"), and the taxable transfer, etc. of assets for which that consideration was received is made on or after the application date, consumption tax is not imposed on that taxable transfer, etc. of assets.

②With respect to electricity, gas, tap water and telecommunications services (meaning the telecommunications services prescribed in Article 2, item (iii) (Definitions) of the Telecommunications Business Act (Act No. 86 of 1984)) that are supplied or provided under a contract promising continuous supply or provision and that have been supplied or provided continuously since before the application date, and other taxable transfers, etc. of assets specified by Cabinet Order, for which the right to receive payment of charges is fixed during the period from the application date to April 30, 1989 (for those for which the day on which the right to receive payment of charges is first fixed on or after the application date falls after the 30th day of that month (hereinafter in this paragraph referred to as "taxable transfers, etc. of assets by specified continuous supply"), the portion specified by Cabinet Order of those that have been fixed), the taxable transfers, etc. of assets relating to the charges so fixed (for taxable transfers, etc. of assets by specified continuous supply, limited to the portion of the charges so fixed that corresponds to the portion specified by Cabinet Order) are deemed to have been made on the day before the application date.

③Where a business operator has received a transfer of assets relating to a taxable transfer, etc. of assets to which the provisions of paragraph (1) have been applied, or has received the provision of services relating to that taxable transfer, etc. of assets, it is deemed to have received that transfer of the assets, or to have received the provision of those services, before the application date.

①Where, under a contract for construction work (including manufacturing) concluded by a business operator before the date of enforcement of this Act (hereinafter referred to as the "Effective Date") (including a contract specified by Cabinet Order as similar to it), the business operator makes on or after the application date a taxable transfer, etc. of assets under that contract (excluding those that fall under transfers, etc. of assets set out in the items of Article 7, paragraph (1) and those for which consumption tax is exempted under the provisions of Article 8, paragraph (1) or other laws or treaties), consumption tax is not imposed on that taxable transfer, etc. of assets (if the amount of consideration under that contract is increased on or after the Effective Date, limited to the portion equivalent to the amount of consideration before that increase).

②Where, under a contract concerning the lending of assets concluded by a business operator before the Effective Date, the business operator has been carrying out the lending of assets under that contract (excluding those that fall under transfers, etc. of assets set out in the items of Article 7, paragraph (1) and those for which consumption tax is exempted under the provisions of Article 8, paragraph (1) or other laws or treaties) continuously from before the application date and on or after the application date, and the content of that contract meets the requirements set out in items (i) and (ii) or items (i) and (iii), consumption tax is not imposed on that lending of assets; provided, however, that this does not apply to the lending of assets after the change where the amount of consideration for the lending of assets is changed on or after the Effective Date.

③Where, under a contract concerning the provision of services concluded by a business operator before the Effective Date, which by the nature of the contract does not allow the time of providing those services to be determined in advance and which is specified by Cabinet Order as a contract under which all or part of the consideration is paid in installments before the provision of the services, the business operator provides the services under that contract on or after the application date, and the content of that contract meets the following requirements, consumption tax is not imposed on that provision of services; provided, however, that this does not apply where the amount of consideration for the provision of the services is changed on or after the Effective Date.

④With respect to the application of Article 30, paragraph (2), (6) or (9), Article 32, paragraph (1) or (4), Article 38, paragraph (1), Article 39, paragraph (1), Article 43, paragraph (1) or Article 45, paragraph (1) to a business operator that has made a taxable transfer, etc. of assets to which the provisions of paragraph (1), the main clause of paragraph (2) or the main clause of the preceding paragraph apply, for the taxable period to which those provisions apply, the phrase "required solely for taxable transfers, etc. of assets" in Article 30, paragraph (2), item (i) is deemed to be replaced with "required solely for taxable transfers, etc. of assets (excluding those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply; hereinafter the same applies in this item)", the phrase "required commonly for taxable transfers, etc. of assets and other transfers, etc. of assets" in that item with "required commonly for taxable transfers, etc. of assets and other transfers, etc. of assets (including those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply; hereinafter the same applies in this item)", the phrase "transfers, etc. of assets made" in paragraph (6) of that Article with "transfers, etc. of assets made (excluding those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply)", the phrase "taxable transfers, etc. of assets made" in that paragraph with "taxable transfers, etc. of assets made (excluding those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply)", the phrase "excluding those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other laws or treaties" in paragraph (9), item (i) of that Article with "excluding those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other laws or treaties and those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply", the phrase "taxable transfers, etc. of assets" in Article 32, paragraph (1), item (ii), (a) and paragraph (4), item (ii), (a) of that Article with "taxable transfers, etc. of assets (excluding those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply; hereinafter the same applies in this item)", the phrase "excluding those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other laws or treaties" in Article 38, paragraph (1) and Article 39, paragraph (1) with "excluding those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other laws or treaties and those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply", and the phrase "those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other laws or treaties" in Article 43, paragraph (1) and Article 45, paragraph (1) with "those for which consumption tax is exempted under the provisions of Article 7, paragraph (1), Article 8, paragraph (1) or other laws or treaties and those to which the provisions of Article 3, paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) of the Supplementary Provisions apply".

⑤If a business operator has acquired or leased, from a business operator to which paragraph (1), the main clause of paragraph (2) or the main clause of paragraph (3) has applied, assets relating to a taxable transfer, etc. of assets to which those provisions have applied, or has received the provision of services relating to that taxable transfer, etc. of assets, the business operator is deemed to have acquired or leased those assets, or received that provision of services, before the application date.

⑥If a business operator has made a taxable transfer, etc. of assets to which paragraph (1) or the main clause of paragraph (2) has applied, the business operator is to notify the counterparty in writing that the taxable transfer, etc. of assets is one to which those provisions have applied.

In the case where a business operator that, on the day preceding the application date, operates a tax-free shop for which it has received permission under Article 20, paragraph (6) (Special Provisions on Export Tax Exemption at Tax-Free Shops) of the Commodity Tax Act (Act No. 48 of 1962) prior to its abolition under Article 20 of the Supplementary Provisions intends to continue, on or after the application date, to be a business operator that operates a tax-free shop prescribed in Article 8, paragraph (1), if the business operator gives notification to that effect, as provided by Cabinet Order, to the district director having jurisdiction over its place for tax payment by the day preceding the application date, the tax-free shop is deemed to have received, on the application date, permission under paragraph (6) of that Article.

①The taxable sales in the base period prescribed in Article 9, paragraph (1) (referred to as "taxable sales in the base period" in the following paragraph) are, if the first day of that base period is before the Effective Date, to be calculated under paragraphs (2) and (3) of that Article, on the assumption that this Act had been in effect from the first day of that base period.

②If there are difficult circumstances in calculating the taxable sales in the base period under the preceding paragraph, then notwithstanding Article 9, paragraph (2), the amount calculated by multiplying by six the taxable sales for the period from January 1, 1989 to February 28, 1989 (meaning the balance remaining after deducting the total tax-exclusive refunds, etc. of consideration for sales prescribed in Article 9, paragraph (2) made during that period from the total amount of consideration (meaning the amount of consideration prescribed in Article 28, paragraph (1)) for taxable transfers, etc. of assets made in Japan during that period) may be treated as the taxable sales in the base period.

③In the application of Article 9, paragraphs (4) and (6) to a case where a business operator has submitted the written notification prescribed in paragraph (4) of that Article to the district director having jurisdiction over its place for tax payment before the application date, the phrase "written notification" in paragraph (4) of that Article is deemed to be replaced with "written notification by March 31, 1989", the phrase "the taxable period following the taxable period that includes the day on which that submission was made (if the taxable period that includes the day on which that submission was made is the taxable period that includes the day on which the business operator commenced business or another taxable period specified by Cabinet Order, that taxable period)" in that paragraph is deemed to be replaced with "the taxable period that includes April 1, 1989", and the phrase "the following taxable period prescribed in that paragraph" in paragraph (6) of that Article is deemed to be replaced with "the taxable period that includes April 1, 1989".