Article 8Tax Exemption for the Transfer of Export Goods at Tax-Free Shops

①In the case where a business operator that operates a tax-free shop has made, to a person eligible for tax-free purchase (meaning a non-resident prescribed in Article 6, paragraph (1), item (vi) (Definitions) of the Foreign Exchange and Foreign Trade Act (Act No. 228 of 1949) who stays in Japan with the landing permission prescribed in Articles 14 through 18 (Permission for Landing) of the Immigration Control and Refugee Recognition Act (Cabinet Order No. 319 of 1951), who stays in Japan with the status of residence of "Diplomat" or "Official" in Appended Table I (1) of that Act or the status of residence of "Temporary Visitor" in Appended Table I (3) of that Act, or any other person specified by Cabinet Order; the same applies hereafter in this Article), a transfer (excluding a transfer on which consumption tax is not to be imposed under Article 6, paragraph (1)) of goods specified by Cabinet Order that are purchased by the method specified by Cabinet Order for the purpose of export (in a case specified by Cabinet Order, limited to where the total amount of consideration prescribed in Article 28, paragraph (1) pertaining to the transfer of those goods is equal to or more than the amount specified by Cabinet Order), consumption tax is exempted for the transfer of those goods.

②The provisions of the preceding paragraph do not apply where the business operator that operates the tax-free shop that made the transfer referred to in that paragraph does not retain documents or electronic or magnetic records (meaning electronic or magnetic records prescribed in Article 2, item (iii) (Definitions) of the Act on Special Provisions concerning Preservation Methods for Books and Documents Related to National Tax Prepared by Means of Computers (Act No. 25 of 1998)) proving that the goods were purchased by a person eligible for tax-free purchase by the method prescribed in that paragraph; provided, however, that this does not apply where consumption tax has already been collected through the application of the main clause of the following paragraph or the main clause of paragraph (5) (including as applied mutatis mutandis pursuant to paragraph (6)), or where that business operator has proved that it was unable to retain those documents or electronic or magnetic records due to a disaster or other unavoidable circumstances.

③Where a person eligible for tax-free purchase who purchased the goods prescribed in paragraph (1) at a tax-free shop by the method prescribed in that paragraph does not export those goods by the day of departure from Japan (or, where that person ceases to be a person eligible for tax-free purchase, by the day on which that person ceases to be so), the director-general of the customs house having jurisdiction over the port of departure (or, where that person ceases to be a person eligible for tax-free purchase, the district director having jurisdiction over the place of that person's address or residence at the time of ceasing to be so; the same applies hereafter in this paragraph) is to immediately collect from that person consumption tax equivalent to the amount of consumption tax exempted under paragraph (1) for the transfer of those goods, except where that person has obtained the approval of that director-general of the customs house for not exporting the goods because they were lost due to a disaster or other unavoidable circumstances; provided, however, that this does not apply where a fact falling under the case prescribed in the main clause of the preceding paragraph has already arisen, or where consumption tax has been collected through the application of the main clause of paragraph (5) (including as applied mutatis mutandis pursuant to paragraph (6)).

④Goods prescribed in paragraph (1) that a person eligible for tax-free purchase has purchased at a tax-free shop by the method prescribed in that paragraph must not be transferred or acquired in Japan (including, upon being commissioned to carry out such transfer or acquisition or for the purpose of mediating it, possessing those goods, or causing a person commissioned to carry out the transfer or a person who mediates it to possess them for the purpose of transfer; the same applies hereafter through paragraph (6)); provided, however, that this does not apply where, in a case in which there are unavoidable circumstances for the transfer or acquisition of those goods, the approval of the district director having jurisdiction over the place where those goods are located has been obtained.

⑤When goods prescribed in the preceding paragraph have been transferred or acquired in Japan, the district director is to immediately collect consumption tax equivalent to the amount of consumption tax exempted under paragraph (1) for the transfer of those goods, from the person who obtained the approval under the proviso to the preceding paragraph if there is such a person, or, where the transfer or acquisition was made without obtaining that approval, from the person who transferred those goods (including a person who caused them to be possessed as prescribed in the main clause of the preceding paragraph; the same applies in the following paragraph); provided, however, that this does not apply where a fact falling under the case prescribed in the main clause of paragraph (2) has already arisen, or where consumption tax has been collected through the application of the main clause of paragraph (3).

⑥Where goods prescribed in paragraph (4) have been transferred or acquired in Japan without the approval under the proviso to paragraph (4), the person who acquired those goods (including a person who possessed them as prescribed in the main clause of that paragraph) is jointly and severally liable with the person who transferred those goods to pay consumption tax equivalent to the amount of consumption tax exempted under paragraph (1) for the transfer of those goods. In this case, the provisions of the preceding paragraph apply mutatis mutandis to the collection of the consumption tax.

⑦A tax-free shop prescribed in paragraphs (1) through (4) is a sales outlet operated by a business operator that satisfies all of the following requirements (excluding a business operator exempted from the obligation to pay consumption tax under the main clause of paragraph (1) of the following Article) (excluding a temporary sales outlet prescribed in paragraph (9)), for which permission has been obtained from the district director having jurisdiction over the business operator's place for tax payment as a sales outlet capable of transferring to persons eligible for tax-free purchase goods prescribed in paragraph (1) that are purchased by the method prescribed in that paragraph:

⑧The district director may revoke the permission under the preceding paragraph for a tax-free shop if the business operator that operates the tax-free shop prescribed in that paragraph has violated the provisions of laws and regulations concerning consumption tax, or if its facilities and other conditions are found to be particularly unsuitable for a tax-free shop prescribed in that paragraph.

⑨Where a business operator that intends to establish a temporary sales outlet (meaning a sales outlet established for a period fixed at seven months or less for the purpose of transferring goods prescribed in paragraph (1) to persons eligible for tax-free purchase) (limited to a business operator that operates a tax-free shop prescribed in paragraph (7)) and that has obtained the approval under the following paragraph submits, by the day before the day of establishing that temporary sales outlet, to the district director having jurisdiction over its place for tax payment a written notification stating the period during which it intends to establish that temporary sales outlet and other matters specified by Ministry of Finance Order, with the documents specified by Ministry of Finance Order attached, the provisions of paragraphs (1) through (4) apply, only for that period, deeming that temporary sales outlet to be a tax-free shop prescribed in paragraph (7).

⑩A business operator that seeks to be subject to the application of the preceding paragraph must obtain, in advance, the approval of the district director having jurisdiction over its place for tax payment, as provided by Cabinet Order.

⑫Matters concerning permission for tax-free shops prescribed in paragraph (7), and other matters necessary for the application of the preceding paragraphs, are specified by Cabinet Order.