①If a business operator prescribed in Article 36, paragraph (1) (Adjustment of Amount of Consumption Tax on Inventory When Exemption from Tax Liability Ceases to Apply, etc.) of the New Consumption Tax Act holds, on or after the application date, inventory relating to a taxable purchase acquired in Japan before the application date, or taxable goods taken out of a bonded area before the application date that fall under inventory, the provisions then in force continue to govern the adjustment of consumption tax under the provisions of that paragraph for the inventory relating to that taxable purchase or those taxable goods that fall under inventory.

②The provisions of the preceding paragraph apply mutatis mutandis to the case where an individual business operator or corporation under Article 36, paragraph (3) of the New Consumption Tax Act succeeds to the business of the decedent or merged corporation referred to in that paragraph. In this case, in the preceding paragraph, the phrase "Article 36, paragraph (1) (Adjustment of Amount of Consumption Tax on Inventory When Exemption from Tax Liability Ceases to Apply, etc.)" is deemed to be replaced with "Article 36, paragraph (3)", the phrase "business operator" with "individual business operator or corporation", the phrase "in Japan" with "by the decedent or merged corporation referred to in Article 36, paragraph (3) in Japan", and the phrase "a bonded area" with "a bonded area by the decedent or merged corporation referred to in Article 36, paragraph (3)".

③The provisions of paragraph (1) apply mutatis mutandis to the case where a business operator under Article 36, paragraph (5) of the New Consumption Tax Act comes to be exempt from the obligation to pay consumption tax under the provisions of Article 9, paragraph (1), main clause (Exemption from Tax Liability of Small-Scale Business Operators) of the New Consumption Tax Act.