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.