①With respect to a taxable period of a qualified invoice issuer (including a person deemed to be a business operator that has received registration under Article 57-2, paragraph (1) of the Consumption Tax Act pursuant to Article 57-3, paragraph (3) of that Act, and excluding a foreign business operator prescribed in Article 2, paragraph (1), item (iv)-2 of the Consumption Tax Act that, on the first day of the taxable period, has no permanent establishment prescribed in Article 2, paragraph (1), item (viii)-4 of the Income Tax Act or Article 2, item (xii)-19 of the Corporation Tax Act; the same applies hereinafter in this Article and the following Article) that includes a day falling within the period from the 2023 Effective Date to the day on which three years have elapsed from the 2023 Effective Date (limited to a taxable period for which the qualified invoice issuer would be exempt from the obligation to pay consumption tax if there were no registration under Article 57-2, paragraph (1) of the Consumption Tax Act (including that registration in the case where the person is deemed to be a business operator that has received registration under Article 57-2, paragraph (1) of that Act pursuant to Article 57-3, paragraph (3) of that Act; the same applies in paragraph (1) of the following Article), no submission of a written notification under Article 9, paragraph (4) of that Act, and no application of Article 10, paragraph (1) of that Act, and excluding the taxable periods listed in the following items), the total amount of tax on taxable purchases, etc. prescribed in Article 30, paragraph (2) of that Act that can be deducted, pursuant to Articles 30 through 37 of that Act, from the consumption tax on the tax base amount prescribed in Article 30, paragraph (1) of that Act may, notwithstanding Articles 30 through 37 of that Act, be the special deduction amount. In this case, that special deduction amount is deemed to be the consumption tax on purchases prescribed in Article 32, paragraph (1), item (i) of that Act for that taxable period.

②The special deduction amount prescribed in the preceding paragraph means an amount equivalent to 80/100 of the remainder obtained by deducting, from the consumption tax on the total of the amounts of the tax base for taxable transfers, etc. of assets of that qualified invoice issuer in that taxable period (excluding those exempt from consumption tax under Article 7, paragraph (1) or Article 8, paragraph (1) of the Consumption Tax Act or other provisions of laws or treaties), the total of the amounts of consumption tax on the amount of refunds, etc. of consideration for sales prescribed in Article 38, paragraph (1) of the New Consumption Tax Act in that taxable period.

③A qualified invoice issuer that intends to be subject to the application of the provisions of paragraph (1) is to note that fact on the return under Article 45, paragraph (1) of the New Consumption Tax Act (including a return filed after the due date prescribed in Article 18, paragraph (2) of the Act on General Rules for National Taxes relating to that return).

④With respect to the application, in a taxable period of a qualified invoice issuer to which the provisions of paragraph (1) apply, of Article 9, paragraph (7) and Article 12-4, paragraphs (1) and (3) of the Consumption Tax Act, Article 45, paragraph (1) and Article 60, paragraph (4) of the New Consumption Tax Act, and Article 44, paragraph (2) of the Supplementary Provisions of the 2015 Amendment Act, the phrase "Article 37, paragraph (1)" in Article 9, paragraph (7) and Article 12-4, paragraphs (1) and (3) of the Consumption Tax Act is deemed to be replaced with "Article 37, paragraph (1) or Article 51-2, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016)", the phrase "the preceding Chapter" in Article 45, paragraph (1), item (iii) of the New Consumption Tax Act with "the preceding Chapter and Article 51-2, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016)", the phrase "Article 37" in Article 60, paragraph (4) of the New Consumption Tax Act with "Article 37 or Article 51-2, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016)", and the phrase "Article 37, paragraph (1)" in Article 44, paragraph (2) of the Supplementary Provisions of the 2015 Amendment Act with "Article 37, paragraph (1) or Article 51-2, paragraph (1) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016)".

⑤Where a business operator that is exempt from the obligation to pay consumption tax pursuant to the main clause of Article 9, paragraph (1) of the New Consumption Tax Act ceases to be exempt from the obligation to pay consumption tax from the first day of the taxable period that includes the 2023 Effective Date by the submission of a written notification under Article 9, paragraph (4) of the Consumption Tax Act, and that business operator has submitted the written application under Article 57-2, paragraph (2) of the New Consumption Tax Act pursuant to the provisions of Article 44, paragraph (1) of the Supplementary Provisions, then with respect to the submission, for that taxable period of that business operator, of the written notification under Article 9, paragraph (5) of the Consumption Tax Act, the provisions of paragraph (6) of that Article do not apply. In this case, where, during that taxable period, that business operator has submitted to the district director having jurisdiction over its place for tax payment that written notification stating that it intends to cease to be subject to the application of Article 9, paragraph (4) of the Consumption Tax Act for that taxable period, the provisions of paragraph (8) of that Article are applied by deeming that written notification to have been submitted to that district director on the day before the first day of that taxable period.

⑥Where a qualified invoice issuer to which the provisions of paragraph (1) have been applied submits the written notification under Article 37, paragraph (1) of the Consumption Tax Act to the district director having jurisdiction over its place for tax payment by the deadline for filing the return under Article 45, paragraph (1) of that Act for the taxable period following the taxable period in which those provisions were applied (hereinafter in this paragraph referred to as the "special-rule taxable period"), and that written notification states that the provisions of Article 37, paragraph (1) of that Act apply for that special-rule taxable period, the provisions of that paragraph are applied by deeming that written notification to have been submitted to that district director on the day before the first day of that special-rule taxable period.

⑦Beyond what is prescribed in the preceding paragraphs, necessary matters concerning the application of the provisions of this Article are specified by Cabinet Order.