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)) makes a taxable purchase or specified taxable purchase of an adjustment-target fixed asset in Japan, or takes taxable goods that fall under an adjustment-target fixed asset out of a bonded area, and calculates the consumption tax on purchases by the proportional allocation method with respect to the amount of tax on taxable purchases, etc. relating to that taxable purchase or specified taxable purchase or those taxable goods (including the case where the entire amount of tax on taxable purchases, etc. relating to that adjustment-target fixed asset has been deducted under the provisions of Article 30, paragraph (1)), and that business operator (including an heir who has succeeded to the business of that business operator relating to that adjustment-target fixed asset 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 adjustment-target fixed asset 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 adjustment-target fixed asset on the last day of the third-year taxable period, and the aggregate taxable sales ratio for the third-year taxable period has significantly increased, in a case specified by Cabinet Order, relative to the taxable sales ratio prescribed in Article 30, paragraph (2) for the taxable period of purchase, etc. (meaning the taxable period that includes the day of the taxable purchase or the day of the specified taxable purchase of that adjustment-target fixed asset, or the day on which it was taken out of a bonded area (where a special return has been submitted for taxable goods that fall under that adjustment-target fixed asset, the day on which the special return was submitted or the day on which notice was received of the determination on a special return; the same applies in paragraph (1) of the following Article and in Article 35); the same applies hereinafter in this paragraph and the following paragraph) (where the provisions of the main clause of paragraph (3) of that Article were applied in the taxable period of purchase, etc., the ratio relating to the approval prescribed in that paragraph; the same applies hereinafter in this paragraph and the following paragraph), the amount of consumption tax equivalent to the amount obtained by deducting the total set forth in item (i) from the total set forth in item (ii) is to be added to the consumption tax on purchases for that third-year taxable period of that person; and where that aggregate taxable sales ratio has significantly decreased relative to that taxable sales ratio, in a case specified by Cabinet Order, the amount of consumption tax equivalent to the amount obtained by deducting the total set forth in item (ii) from the total set forth in item (i) is to be deducted from the consumption tax on purchases for that third-year taxable period of that person. In this case, the amount after that addition or after that deduction is deemed to be the consumption tax on purchases for that taxable period.

②The proportional allocation method prescribed in the preceding paragraph means the method of calculating by multiplying by the taxable sales ratio prescribed in Article 30, paragraph (2), item (i), (b) (hereinafter in this paragraph referred to as the "taxable sales ratio"), or the method specified in paragraph (2), item (ii) of that Article; the third-year taxable period prescribed in the preceding paragraph means the taxable period that includes the day on which three years have elapsed from the first day of the taxable period of purchase, etc.; and the aggregate taxable sales ratio prescribed in that paragraph means the taxable sales ratio obtained by aggregating, as provided by Cabinet Order, the taxable sales ratios that should apply in each taxable period from the taxable period of purchase, etc. to the third-year taxable period.

③Where, under the provisions of paragraph (1), the amount of consumption tax equivalent to the amount obtained by deducting the total set forth in item (ii) of that paragraph from the total set forth in item (i) of that paragraph is deducted from the consumption tax on purchases for that third-year taxable period and there is an amount that cannot be fully deducted, that amount is deemed to be consumption tax on a taxable transfer, etc. of assets and is added to the amount of consumption tax on the tax base amount for that third-year taxable period.