Supplementary Provisions, Article 17Transitional Measures Concerning Adjustment of Consumption Tax on Inventory in the Case of Ceasing to Be Exempted from Tax Liability

Where a business operator exempted from the obligation to pay consumption tax under the main clause of Article 9, paragraph (1) of the Consumption Tax Act ceases, pursuant to Article 44, paragraph (4) of the Supplementary Provisions of the 2016 Amendment Act, to be subject to the application of the main clause of Article 9, paragraph (1) of the Consumption Tax Act, and holds, on the day preceding the registration start date (meaning the registration start date prescribed in Article 44, paragraph (3) of the Supplementary Provisions of the 2016 Amendment Act; the same applies in the following Article), inventory (meaning inventory prescribed in Article 2, paragraph (1), item (xv) of the Consumption Tax Act; the same applies hereinafter in this Article) 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 (meaning taxable goods prescribed in Article 2, paragraph (1), item (xi) of the Consumption Tax Act) taken out of a bonded area (meaning a bonded area prescribed in Article 2, paragraph (1), item (ii) of the Consumption Tax Act) during that period that fall under inventory (including inventory manufactured or constructed using that inventory as raw materials), the provisions of Article 36, paragraphs (1) and (2) of the Consumption Tax Act apply mutatis mutandis. In this case, the phrase "Article 11, paragraph (1), or Article 12, paragraph (5)" in paragraph (1) of that Article is deemed to be replaced with "Article 11, paragraph (1), Article 12, paragraph (5), or Article 44, paragraph (4) of the Supplementary Provisions of the Act Partially Amending the Income Tax Act, etc. (Act No. 15 of 2016)".