This Act comes into effect on January 1, 1995; provided, however, that the provisions of Article 3 and Articles 7 through 24 and Article 28 of the Supplementary Provisions come into effect on April 1, 1997.

Except as otherwise provided in these Supplementary Provisions, the provisions of the Consumption Tax Act after the amendment by the provisions of Article 3 (hereinafter referred to as the "New Consumption Tax Act") apply to consumption tax on transfers, etc. of assets made by a business operator in Japan on or after April 1, 1997 (hereinafter referred to as the "application date"), on taxable purchases made by a business operator in Japan on or after the application date, and on foreign goods taken out of a bonded area on or after the application date, and the provisions then in force continue to govern consumption tax on transfers, etc. of assets made by a business operator in Japan before the application date, on taxable purchases made by a business operator in Japan before the application date, and on foreign goods taken out of a bonded area before the application date.

Where a business operator has made, during the base period prescribed in Article 2, paragraph (1), item (xiv) of the Consumption Tax Act, a refund, etc. of consideration for sales prescribed in Article 38, paragraph (1) (Deduction of Consumption Tax in the Case of Making a Refund, etc. of Consideration for Sales) of the New Consumption Tax Act with respect to a taxable transfer, etc. of assets (meaning a taxable transfer, etc. of assets prescribed in Article 2, paragraph (1), item (ix) (Definitions) of the Consumption Tax Act; the same applies hereinafter) made in Japan before the application date, the provisions then in force continue to govern the calculation of the taxable sales in the base period prescribed in Article 9, paragraph (1) (Exemption from Tax Liability for Small-Scale Business Operators), Article 11, paragraph (4) (Special Provisions on Exemption from Tax Liability in the Case of Merger) or Article 12, paragraph (2) (Special Provisions on Exemption from Tax Liability in the Case of a Company Split) of the New Consumption Tax Act relating to that refund, etc. of consideration for sales.

The provisions of Article 12-2 (Special Provisions on Exemption from Tax Liability of Corporations Without a Base Period) of the New Consumption Tax Act apply to a business operator that comes to fall under a newly established corporation prescribed in that Article on or after the application date.

①If a business operator has received, before the application date, payment of passenger fares, admission fees to places where films or theatrical performances are held, or any other consideration specified by Cabinet Order for taxable transfers, etc. of assets to an unspecified and large number of persons, and makes, on or after the application date, the taxable transfer, etc. of assets for which that consideration was received, the consumption tax on that taxable transfer, etc. of assets is at the rate prescribed in Article 29 (Tax Rates) of the Consumption Tax Act prior to the amendment by the provisions of Article 3 (hereinafter referred to as the "Former Consumption Tax Act").

②With regard to the supply or provision of electricity, gas, tap water and telecommunications services (meaning telecommunications services prescribed in Article 2, item (iii) (Definitions) of the Telecommunications Business Act (Act No. 86 of 1984)) that a business operator supplies or provides under a contract committing it to supply or provide them continuously and that have been continuously supplied or provided since before the application date, or any other taxable transfer, etc. of assets specified by Cabinet Order, in each case where the right to receive payment of the charge becomes fixed during the period from the application date to April 30, 1997 (for one for which the first day on or after the application date on which the right to receive payment of the charge becomes fixed is after April 30, 1997 (referred to as a "taxable transfer, etc. of assets by specified continuous supply" in this paragraph), the portion of the fixed charges specified by Cabinet Order), the consumption tax on the taxable transfer, etc. of assets relating to the fixed charge (for a taxable transfer, etc. of assets by specified continuous supply, limited to the portion of the fixed charge that corresponds to the portion so specified by Cabinet Order) is at the rate prescribed in Article 29 of the Former Consumption Tax Act.

③If a business operator makes, on or after the application date, a taxable transfer, etc. of assets relating to a contract for the undertaking of construction (including manufacture) (including a contract similar thereto specified by Cabinet Order) concluded during the period from December 30, 1988 to the day preceding October 1, 1996 (hereinafter referred to as the "designated day"), the consumption tax on that taxable transfer, etc. of assets (if the amount of consideration under that contract has been increased on or after the designated day, limited to the portion corresponding to the amount of consideration before the increase) is at the rate prescribed in Article 29 of the Former Consumption Tax Act.

④If a business operator, under a contract concluded during the period from December 30, 1988 to the day preceding the designated day relating to the lending of assets, has been lending the assets under that contract continuously from before the application date through and after the application date, and the terms of that contract satisfy the requirements set forth in items (i) and (ii), or in items (i) and (iii), the consumption tax on the lending of those assets made on or after the application date is at the rate prescribed in Article 29 of the Former Consumption Tax Act; provided, however, that this does not apply to the lending of those assets after the change if the amount of consideration for the lending of those assets was changed on or after the designated day.

⑤If a business operator provides, on or after the application date, services relating to a contract for the provision of services concluded during the period from December 30, 1988 to the day preceding the designated day, being a contract whose time of provision of the services cannot be determined in advance owing to the nature of the contract and that is specified by Cabinet Order as a contract under which all or part of the consideration is paid in installments prior to the provision of the services, and the terms of the contract satisfy the following requirements, the consumption tax on the provision of those services is at the rate prescribed in Article 29 of the Former Consumption Tax Act; provided, however, that this does not apply if the amount of consideration for the provision of those services was changed on or after the designated day.

⑥In the application of Article 38, paragraph (1) (Deduction of Amount of Consumption Tax When Refunds, etc. of Consideration for Sales Are Made) and Article 39, paragraph (1) (Deduction, etc. of Amount of Consumption Tax Relating to Bad Debts) of the New Consumption Tax Act to a taxable transfer, etc. of assets to which paragraphs (1) through (3), the main clause of paragraph (4) or the main clause of the preceding paragraph applies, the phrase "5/100" in Article 38, paragraph (1) of the New Consumption Tax Act is deemed to be replaced with "3/100" and "4/105" with "3/103", and the phrase "4/105" in Article 39, paragraph (1) of the New Consumption Tax Act is deemed to be replaced with "3/103".

⑦In the application of Article 30, paragraph (1) (Deduction of Amount of Consumption Tax on Purchases), Article 32, paragraph (1) (Special Provisions on Deduction of Amount of Consumption Tax on Purchases When Refunds, etc. of Consideration for Purchases Are Received) and 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 where a business operator has acquired or leased, from a business operator to which paragraphs (1) through (3), the main clause of paragraph (4) or the main clause of paragraph (5) 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 phrase "4/105" in those provisions is deemed to be replaced with "3/103".

⑧If a business operator has made a taxable transfer, etc. of assets to which paragraph (3) or the main clause of paragraph (4) 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.

①If a business operator has applied Article 15, paragraph (1) (Special Provisions on the Time of Transfer, etc. of Assets Relating to Instalment Sales or Similar Transactions) of the Consumption Tax Act to an instalment sale or similar transaction of inventory or services prescribed in that paragraph conducted before the application date, and there are installments of that instalment sale or similar transaction whose payment due dates arrive on or after the application date, the consumption tax on the taxable transfer, etc. of assets relating to the portion corresponding to those installments is at the rate prescribed in Article 29 (Tax Rates) of the Former Consumption Tax Act.

②The provisions of paragraph (6) of the preceding Article apply mutatis mutandis to the case where the preceding paragraph applies.

①If a business operator has applied Article 16, paragraph (1) (Special Provisions on the Time of Transfer, etc. of Assets Relating to Sales on Deferred Payment Terms) of the Consumption Tax Act to a sale on deferred payment terms prescribed in that paragraph conducted before the application date, and there are installments of that sale on deferred payment terms whose payment due dates arrive on or after the application date, the consumption tax on the taxable transfer, etc. of assets relating to the portion corresponding to those installments is at the rate prescribed in Article 29 (Tax Rates) of the Former Consumption Tax Act.

②The provisions of Article 10, paragraph (6) of the Supplementary Provisions apply mutatis mutandis to the case where the preceding paragraph applies.

①If a business operator, under a contract for the undertaking of long-term construction prescribed in Article 17, paragraph (1) (Special Provisions on the Time of Transfer, etc. of Assets Relating to Contracts for Long-Term Construction) of the Consumption Tax Act concluded during the period from the designated day to the day preceding the application date, delivers the subject matter of the contract on or after the application date, and there is, with respect to the amount of consideration for that long-term construction, an amount accounted for by the percentage-of-completion method prescribed in that paragraph in the year or business year that includes the application date or an earlier year or business year, and the business operator applies that paragraph, the consumption tax on the taxable transfer, etc. of assets relating to the portion of the subject matter of that long-term construction that relates to the amount calculated, as provided by Cabinet Order, as the amount of consideration for the part corresponding to the period from the day on which that long-term construction was commenced to the day preceding the application date is at the rate prescribed in Article 29 (Tax Rates) of the Former Consumption Tax Act.

②The provisions of Article 10, paragraph (6) of the Supplementary Provisions apply mutatis mutandis to the case where the preceding paragraph applies.

③The provisions of Article 10, paragraph (7) of the Supplementary Provisions apply mutatis mutandis to the case where a business operator has taken delivery, from a business operator to which paragraph (1) has applied, of subject matter to which that paragraph has applied (limited to the portion of the amount of consideration for the subject matter so delivered that relates to the amount to which that paragraph applied).

④If a business operator has delivered subject matter to which paragraph (1) has applied, the business operator is to notify the counterparty in writing that the delivery of the subject matter is one to which that paragraph has applied, and of the amount of consideration for the portion to which that paragraph has applied.