①If, with regard to a taxable transfer, etc. of assets made before the application date by an individual business operator under Article 18, paragraph (1) (Special Provisions on the Time, etc. of Transfer, etc. of Assets by Small-Scale Business Operators) of the Consumption Tax Act, the day on which the amount of consideration for that taxable transfer, etc. of assets was received is on or after the application date, the consumption tax on that taxable transfer, etc. of assets 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.

③If, with regard to a taxable purchase made before the application date by an individual business operator under Article 18, paragraph (1) of the Consumption Tax Act, the day on which the expenses for that taxable purchase were paid is on or after the application date, the provisions then in force continue to govern the deduction, etc. of the amount of consumption tax on purchases under Articles 30 through 36 (Deduction, etc. of Amount of Consumption Tax on Purchases) of the New Consumption Tax Act relating to that taxable purchase.

If a business operator, with respect to a taxable purchase made in Japan before the application date, receives on or after the application date a refund, etc. of consideration for purchases prescribed in Article 32, paragraph (1) (Special Provisions on Deduction of Amount of Consumption Tax on Purchases When Refunds, etc. of Consideration for Purchases Are Received) of the New Consumption Tax Act, the provisions then in force continue to govern the computation of the deduction of consumption tax on purchases under the provisions of that Article for that refund, etc. of consideration for purchases.

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.

①The provisions of Article 37, paragraph (1) (Special Provisions on Deduction of Amount of Consumption Tax on Purchases by Small and Medium Sized Business Operators) of the New Consumption Tax Act apply to taxable periods that begin on or after the application date, and the provisions then in force continue to govern taxable periods that began before the application date.

②A written notification under the provisions of Article 37, paragraph (1) of the Former Consumption Tax Act that was submitted before the application date is deemed to be a written notification under the provisions of Article 37, paragraph (1) of the New Consumption Tax Act, and the provisions of that Article apply.

If a business operator prescribed in Article 38, paragraph (1) (Deduction of Amount of Consumption Tax When Refunds, etc. of Consideration for Sales Are Made) of the New Consumption Tax Act, with respect to a taxable transfer, etc. of assets made in Japan before the application date, makes on or after the application date a refund, etc. of consideration for sales prescribed in that paragraph, the provisions then in force continue to govern the deduction of consumption tax under the provisions of that Article for that refund, etc. of consideration for sales.

If, with respect to accounts receivable or other claims relating to a taxable transfer, etc. of assets made in Japan before the application date by a business operator prescribed in Article 39, paragraph (1) (Deduction, etc. of Amount of Consumption Tax Relating to Bad Debts) of the New Consumption Tax Act, the facts prescribed in that paragraph have occurred and, as a result, it has become impossible on or after the application date to collect all or part of the tax-inclusive price of that taxable transfer, etc. of assets referred to in that paragraph, the provisions then in force continue to govern the deduction, etc. of consumption tax under the provisions of that Article for the taxable transfer, etc. of assets for which collection has become impossible.

With regard to a taxable period prescribed in Article 40, paragraph (1) (Marginal Deduction for Small-Scale Business Operators, etc.) of the Former Consumption Tax Act that began before the application date for a business operator prescribed in that paragraph, the provisions of that Article, and of Article 43 (Matters to Be Stated in an Interim Return When Provisional Settlement of Accounts Is Made, etc.) and Article 45 (Final Return for Taxable Transfers, etc. of Assets) of the Former Consumption Tax Act, remain in force. In this case, with regard to a taxable period prescribed in that paragraph for a business operator under Article 40, paragraph (1) of the Former Consumption Tax Act that began before the application date and ends on or after the application date, the phrase "amount" in that paragraph is deemed to be replaced with "amount (if that amount exceeds the sum of the amount calculated by dividing 100,000 yen by 12 and multiplying the result by the number of months in the period from the first day of that taxable period to March 31, 1997 (hereinafter in this paragraph referred to as the "number of months before the application date") and the amount calculated by dividing 80,000 yen by 12 and multiplying the result by the number of months obtained by deducting the number of months before the application date from the number of months in that taxable period, that sum)", and the phrase "the preceding paragraph" in paragraph (4) of that Article with "paragraph (1) and the preceding paragraph".

①The provisions of Article 42 (Interim Return for Taxable Transfers, etc. of Assets) and Article 43 (excluding paragraph (4)) (Matters to Be Stated in an Interim Return When Provisional Settlement of Accounts Is Made, etc.) of the New Consumption Tax Act apply where the taxable period prescribed in Article 42, paragraph (1), (4), (6) or (8) of the New Consumption Tax Act begins on or after the application date, and the provisions then in force continue to govern where that taxable period began before the application date.

②The provisions of Article 43, paragraph (4) of the New Consumption Tax Act apply where, for an interim filing period prescribed in paragraph (1) of that Article the last day of which is on or after the application date, the interim return prescribed in that paragraph is filed for that interim filing period.

③Where, in a taxable period ending on or after the application date (where an interim filing period prescribed in Article 43, paragraph (1) of the New Consumption Tax Act is deemed to be one taxable period under the provisions of that paragraph, that interim filing period the last day of which is on or after the application date; the same applies hereinafter in this paragraph), a taxable transfer, etc. of assets is made to which, by the provisions of these Supplementary Provisions, the tax rate prescribed in Article 29 (Tax Rates) of the Former Consumption Tax Act applies, with regard to a return for that taxable period under the provisions of Article 42, paragraph (1), (4), (6) or (8) of the New Consumption Tax Act that states the matters set forth in the items of Article 43, paragraph (1) of the New Consumption Tax Act, and a return under the provisions of Article 45, paragraph (1) (Final Return for Taxable Transfers, etc. of Assets) of the New Consumption Tax Act, the phrase "total of the amounts of the tax base" in Article 43, paragraph (1), item (i) and Article 45, paragraph (1), item (i) of the New Consumption Tax Act is deemed to be replaced with "amounts of the tax base classified by each different tax rate and the total thereof", and the phrase "tax base amount" in Article 43, paragraph (1), item (ii) and Article 45, paragraph (1), item (ii) of the New Consumption Tax Act with "tax base amount classified by each different tax rate".

④The provisions of Article 45, paragraph (5) and Article 46, paragraph (3) (Return to Receive a Refund) of the New Consumption Tax Act apply where the returns prescribed in those provisions are provided for taxable periods ending on or after the application date.

①If, with respect to a taxable transfer, etc. of assets made before the application date by the national government or a local government to which the provisions of Article 60, paragraph (2) (Special Provisions for the National Government, Local Governments, etc.) of the Consumption Tax Act apply, the last day of the fiscal year in which the consideration for that taxable transfer, etc. of assets is to be received is on or after the application date, the consumption tax on that taxable transfer, etc. of assets 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 provisions of the preceding paragraph apply.

③If, with respect to a taxable purchase made before the application date by the national government or a local government to which the provisions of Article 60, paragraph (2) of the Consumption Tax Act apply, the last day of the fiscal year in which the expense of that taxable purchase is to be paid is on or after the application date, the provisions then in force continue to govern the deduction, etc. of consumption tax on purchases for that taxable purchase under the provisions of Articles 30 through 36 (Deduction, etc. of Amount of Consumption Tax on Purchases) of the New Consumption Tax Act and Article 60, paragraphs (4) and (5) of the New Consumption Tax Act.

④Transitional measures concerning a taxable transfer, etc. of assets and a taxable purchase made before the application date by a corporation prescribed in Article 60, paragraph (3) of the Consumption Tax Act to which the provisions of that paragraph apply are specified by Cabinet Order, in accordance with the provisions of the preceding three paragraphs.

With regard to the application of penal provisions to acts committed before the enforcement of the provisions of Article 3 and to acts committed after the enforcement of the provisions of that Article concerning consumption tax for which the provisions then in force are to continue to govern under the provisions of these Supplementary Provisions, the provisions then in force continue to govern.

In addition to what is provided for in Article 7 through the preceding Article of the Supplementary Provisions, transitional measures concerning books, etc. sold by subscription and other transitional measures necessary for the enforcement of the provisions of Article 3 are specified by Cabinet Order.

Regarding the tax rate of consumption tax, a review is to be conducted, comprehensively taking into account the perspective of securing financial resources for the expenses required for social security, etc., the state of progress in the reform of administration and finance, the state of making special taxation measures, etc. and taxation relating to consumption tax appropriate, the fiscal situation, etc., and if it is found necessary, necessary measures are to be taken by September 30, 1996.