CONSUMPTION TAX LAW

CHAPTER I - General Provisions

translation by Vicki L. Beyer

Article l (Purpose)

This law, as regards a tax on consumption, sets forth provisions necessary to establish the scope of taxation, the taxpayers, and the procedure by which the calculation, reporting, payment and refund of the tax shall occur, as well as to ensure the proper execution of tax liability.

Article 2 (Definitions)

1. In this law, the following numbered terms shall bear the meanings assigned to them hereinbelow.

"In Japan" shall mean the enforcement area of this law.
"Bonded Area" shall bear the meaning prescribed to it in the Customs Law (1954, Law No. 61), Article 29 (Types of Bonded Areas).
"Sole Proprietorship" shall mean a business undertaken by a natural person.
"Enterprise" shall mean either a Sole Proprietorship or a Juridical Person.
"Merged Corporation" shall mean a Juridical Person remaining in existence after a merger or a Juridical Person established as a result of a merger.
"Merging Corporation" shall mean a Juridical Person disappearing in a merger.
"Non-juridical Association" shall mean an unincorporated association or foundation which has stipulated a representative or administrator.
"Transfer of Assets" shall mean the loan or transfer of assets or the provision of services as a business for compensation (this shall include transfer of assets as payment in substitute or other transfer or loan of assets or provision of services or similar activities resulting in compensation, as specified by cabinet order).
"Taxable Transfer of Assets" shall mean those Transfers of Assets other than the ones against which consumption tax will not be levied under the provisions of Article 6, Para.1.
"Foreign Goods" shall bear the meaning prescribed to it in the Customs Law, Article 2 (Definitions), para. 1, Item 3.
"Taxable Goods" shall mean those Foreign Goods removed from a Bonded Area other than the ones against which consumption tax will not be levied in accordance with the provisions of Article 6, Para.2.
"Taxable Purchase" shall mean the receiving by an Enterprise as its business the transfer or lend of assets or provision of services by another person (with the exception of any provision of services for compensation which comes under Earnings as prescribed in the Income Tax Law (1965, Law. No. 33), Article 28, Para.1 (Earned Income)). (Insofar as said transfer or loaning of assets or said provision of services by said other person falls under Taxable Transfer of Assets, this term shall be limited to those activities other than the ones falling under Transfer of Assets in accordance with the items of Article 7, Para.1, and the ones exempted from consumption tax in accordance with the provisions of Article 8, Para.1 or any other law or convention.)
"Fiscal Year" shall bear the meaning prescribed to it in the Corporation Tax Law (1965, Law No. 34), Book One, Chapter V (Fiscal year) (As for those Juridical Persons, including national and local public entities, to whom the provisions of that Chapter do not apply, it shall be the period specified by cabinet order.).
"Base Period" shall mean, with regard to Sole Proprietorships, the year two years prior to the year in question, and, with regard to Juridical Persons, the fiscal year two fiscal years prior to the fiscal year in question (as for those Juridical Persons for whom said fiscal year two fiscal years prior to the fiscal year in question is a period of less than a year, the standard period shall be the period resulting from combining all fiscal years that began during the one year period beginning from the day two years before the first day of the fiscal year in question.)
"Inventory Assets" shall mean those commodities, manufactured goods, semi-manufactured goods, devices, raw materials and other assets specified by cabinet order.
"Adjustable Fixed Assets" shall mean buildings, structures, machinery and equipment, shipping vessels, aircraft, vehicles and transportation equipment, tools, appliances and fixtures, mining rights and other assets whose value is not insubstantial, as specified by cabinet order.
"Final Return" shall bear the meaning prescribed to "Return" in Article 45, Para.1 (said "return" includes "post-deadline return" as prescribed in the General Law of National Taxes (1962, Law No. 66), Article 18, Para.2 (Post-Deadline Return)) and prescribed to "Return" in Article 46, Para.1.
"Incidental Tax" shall bear the meaning prescribed to it in General Law of National Taxes, Article 2 (Definitions), Item 4.
"Interim Payment Amount" shall mean the amount of consumption tax to be paid according to the provisions of Article 48 (in those cases where an amended return is filed according to the provisions of the General Law of National Taxes, Article 19, Para.3 (Amended Return) or where revisions are made according to the provisions of Article 24 (Revisions) or Article 36 (Re-revisions), it shall be the amount of post-return or post-revision consumption tax).

2. In this law, "Loan of Assets" shall include all activities which constitute having another person use an asset for the establishment of rights in the asset.

3. In this law, "Borrowing of Assets" shall include all activities which constitute using the assets of another entity for the establishment of rights in an asset.

4. In this law, "Inheritance" shall include final testamentary gifts, "Successor" shall include a testamentary transferee, and "Predecessor" shall include a testator.

Cross Reference: Consumption Tax Law Enforcement Order Articles 2 through 5.

Article 3 (Application of the law to Non-juridical Associations)

The provisions of this law (with the exception of Article 12-2 and Appendix III) shall be applied to Non-juridical Associations as if they were Juridical Persons.

Historical Note
1994 Amendment: Law No. 109 inserted the words "Article 12-2 and".

Article 4 (Object of Taxation)

1. Consumption tax shall be levied, in accordance with this law, on any Transfer of Assets effected by an Enterprise in Japan.

2. Consumption tax shall be levied, in accordance with this law, on any Foreign Goods removed from a Bonded Area.

3. Determination of whether a Transfer of Assets has taken place in Japan or not shall be made according to the classification mentioned in the items below and whether the location stipulated in said item is in Japan or not.

In the case of a loan or Transfer of Assets, the actual place where the assets are located at the time of the loan or transfer (in case the asset is a shipping vessel, aircraft, mining right, patent right, copyright, national bond, share certificate or other asset stipulated by cabinet order, the place shall be that stipulated by cabinet order).
In the case of provision of services, the place at which said services shall have been provided (in case the service provided is transportation or communication or something else involving areas both in Japan and outside Japan or in other cases stipulated by cabinet order, the place shall be that stipulated by cabinet order).

4. The activities mentioned below shall be regarded as Transfers of Assets for compensation as a business.

The use or consumption by a Sole Proprietorship in his household of Inventory Assets or assets other than Inventory Assets which he uses in his business.
The giving of a gift of assets by a Juridical Person to an Officer (as defined in the Corporation Tax Law, Article 2 (Definitions), Item 15).

5. In cases where a Foreign Good is used or consumed within a Bonded Area, the person using or consuming the Foreign Good shall be regarded as having removed it from the Bonded Area at the time of its use or consumption. Provided, that the foregoing shall not apply in cases where said Foreign Good is used or consumed as a raw material or ingredient in a Taxable Good and in other cases stipulated by cabinet order.

6. In addition to the matters stipulated in the foregoing three paragraphs, other necessary considerations concerning details of the object of taxation shall be stipulated by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Articles 6 and 7; Consumption Tax Law Enforcement Order Regulations Article 2.

Article 5 (Taxable Persons)

1. Enterprises shall, in accordance with this law, be liable to pay consumption tax on Taxable Transfers of Assets they effect in Japan.

2. A person removing Foreign Goods from a Bonded Area shall, in accordance with this law, be liable to pay consumption tax on Taxable Goods.

Article 6 (Tax Exemptions)

1. Consumption tax shall not be levied on those Transfers of Assets in Japan which are mentioned in Appendix I. 2. Consumption tax shall not be levied on those Foreign Goods removed from a Bonded Area which are mentioned in Appendix II.

Cross Reference: Consumption Tax Law Enforcement Order Articles 8 through 16-2; Consumption Tax Law Enforcement Order Regulations Articles 2-2 through 4; Special Taxation Measures Law Article 86-3.

Article 7 (Export Exemption)

1. Of Taxable Transfers of Assets by Enterprises (excluding Enterprises exempted from the obligation to pay consumption tax in accordance with the provisions of the main text of Article 9, Para.1) occurring in Japan, those mentioned in the items below shall be exempted from this consumption tax.

a Transfer of Assets or Loan of Assets occurring as exportation from this country
a transfer or loan of Foreign Goods (excluding those transfers of Foreign Goods which are mentioned in the Law Relating to the Collection of a Domestic Consumption Tax on Imported Merchandise (1955, Law No. 37) Article 8 (Collection of a Domestic Consumption Tax in case of Sale or Public Auction), Para.1, Item 2 and those which fall under Transfer of Assets or Loan of Assets mentioned in Item l above)
the carriage or communication of goods or travellers which crosses areas in Japan and outside Japan
those activities stipulated by cabinet order which constitute the loan or transfer, or repair, of shipping vessels or aircraft used mainly for carriage under the provisions of the previous item
those activities stipulated in cabinet orders which are similar to Transfers of Assets mentioned in the items above

2. The provisions of the previous paragraph shall not apply to those Taxable Transfers of Assets which are Transfers of Assets mentioned in each item above where those transfers are not verified in accordance with the stipulations of the ordinances of the Ministry of Finance.

Cross Reference: Consumption Tax Law Enforcement Order Articles 17 and 19; Consumption Tax Law Enforcement Order Regulations Article 5.

Article 8 (Exemption for Transfer of Export Merchandise in a Market for Export Merchandise)

1. In case an Enterprise operating a market for export merchandise effects a transfer (except those transfers against which consumption tax shall not be levied in accordance with the provisions of Article 6, Para.1) for export purposes to a Non-resident, as defined in the Foreign Exchange and Foreign Trade Control Law (1949, Law No. 228), Article 6 (Definitions), Para.1, Item 6 (for purposes of the remainder of this Article, "Non-resident"), of merchandise stipulated by cabinet order, which is purchased in accordance with methods stipulated by cabinet order (those cases stipulated by cabinet order shall be limited to those occasions when the total Price Amount, as provided for in Article 28, Para.1, as it relates to said transfer of merchandise, is a petty sum and yet is more than the amount stipulated by cabinet order), said transfer of merchandise shall be exempt from this consumption tax.

2. The provisions of the previous paragraph shall not apply in case there is no verifying documentation that the Enterprise operating a market for export merchandise in that paragraph effected the purchase of said merchandise by a Non-resident in accordance with the method provided for in that paragraph. Provided, that the foregoing shall not apply in case the provisions of the main text of the next paragraph or the main text of Paragraph 5 have been previously applied, or where, due to a disaster or other unavoidable circumstance, said documentation could not be maintained and the Enterprise has submitted evidence to that effect.

3. When a Non-resident purchasing merchandise, as provided for in Paragraph 1 and in accordance with the method provided for therein, in a market for export merchandise does not export said merchandise until the day he departs from this country (or in the event that person becomes a Resident (as defined in the Foreign Exchange and Foreign Trade Control Law, Article 6, Para.1, Item 5, hereafter in reference to this paragraph, "Resident"), the day he becomes a Resident), the customs director having jurisdiction over the port of departure (or, for purposes of the remainder of this paragraph, in the case of becoming a Resident, the director of the tax office having jurisdiction over the area in which that person has his domicile or residence) shall, except where the person receives the consent of the customs director for failing to export said merchandise due to its loss in a disaster or other unavoidable circumstance, immediately collect from that person consumption tax equivalent to the amount of tax exempted according to the provisions of Paragraph 1 regarding the transfer of said merchandise. Provided, that the foregoing shall not apply in case facts falling under the provisions of the main text of the previous paragraph shall arise, or where the provisions of the main text of Paragraph 5 shall apply.

4. The purchase of merchandise, as provided for in Paragraph 1, by a Non-resident at an export merchandise market according to the methods provided for in the same paragraph, shall not be considered a transfer or receipt (for purposes of this paragraph and the next, this shall include holding said merchandise as an intermediary or taking it on consignment, or causing someone to act as an intermediary or take goods on consignment for purposes of transfer) in Japan. Provided that the foregoing shall not apply in case unavoidable circumstances have occurred with regard to the transfer or receipt of said merchandise and consent therefor shall have been received from the director of the tax office having jurisdiction over the place where the merchandise is located.

5. When the transfer or receipt of merchandise as provided for in the previous paragraph shall have occurred in Japan, the director of the tax office shall immediately collect from the person who has received consent under the proviso contained in the previous paragraph, or the person who has received said merchandise when there has been a transfer or receipt without said consent (this shall include those persons granting possession as provided for in the previous paragraph and, in case those persons do not confirm having granted possession to someone else, they shall be considered the recipient or possessor of the merchandise), consumption tax equivalent to the amount of tax exempted according to the provisions of Paragraph 1 regarding the transfer of said merchandise. Provided, that the foregoing shall not apply in case facts provided for in the main text of Paragraph 2 shall arise or in case the provisions of the main text of Paragraph 3 have previously been applied.

6. An export merchandise market, as provided for in Paragraphs 1 through 4 above, shall be a market managed by an Enterprise in order for the provisions of Paragraph 1 to apply which, in case the provisions of the main text of Paragraph 1 of the following Article do not apply, has received a permit from the director of the tax office having jurisdiction over the place of tax payment of said Enterprise in order for the transfer of merchandise specified in Paragraph 1 purchased by a Non-resident in a method specified in that paragraph to be possible.

7. The director of the tax office may cancel the export merchandise market permit referred to in the previous paragraph in case the Enterprise managing said export merchandise market shall have violated the provisions of a cabinet order concerning this consumption tax or in case the tax office shall determine that the facilities or other circumstances of said market are especially inadequate.

Cross Reference: Consumption Tax Law Enforcement Order Articles 16 and 19; Consumption Tax Law Enforcement Order Regulations Articles 6 through 10; Special Taxation Measures Law Articles 85 through 86-2.

Article 9 (Special Exemption from Tax Liability for Small Scale Enterprises)

1. Those Enterprises whose Base Period Taxable Sales applicable to the Tax Period were less than 30 million yen shall, notwithstanding the provisions of Article 5, Para.1, be exempt from the obligation to pay consumption tax on Taxable Transfers of Assets occurring in Japan during said Tax Period. Provided, that the foregoing shall not apply in cases specified elsewhere in this law.

2. Base Period Taxable Sales, as provided for in the previous paragraph, shall be the amount of money in each of the items below according to the class of Enterprise mentioned in said item.

For Sole Proprietorships, and for Juridical Persons whose Base Period is a year, the amount shall be the total amount remaining after subtracting the amounts mentioned in sub-items a and b below from the total Price Amount (for the purposes of the remainder of this paragraph and Article 11, Para.4, said Price Amount is that provided for in Article 28, Para.1) received for Taxable Transfers of Assets occurring in Japan during the Base Period (for purposes of the remainder of this paragraph and Article 11, Para.4, said total amount shall be referred to as the "Total Amount of Refunds of Sales Price Net of Tax").
a. The money amount of Refunds of Sales Price, as provided for in Article 38, Para.1, occurring during the Base Period.
b. The amount received by multiplying the amount of consumption tax on the money amount of Refunds of Sales Price, as provided for in Article 38, Para.1, during the Base Period by 1.25.
For Juridical Persons whose Base Period is not a year, the amount shall be calculated by deducting the total money amount of Refunds of Sales Price in said Base Period from the total Price Amount of Taxable Transfers of Assets occurring during said Base Period, dividing this by the total number of months in the Fiscal Year included in said Base Period of said Juridical Person and multiplying this quotient by twelve.

3. The number of months for item 2 of the previous paragraph shall be calculated according to the calendar and, when a fraction of less than a month arises, it shall be considered one month.

4. In case an Enterprise exempted from the obligation to pay this consumption tax under the provisions of the main text of Paragraph 1 above, has submitted to the director of the tax office having jurisdiction over the place of tax payment a notification stating that it does not intend to apply the provisions of that paragraph as regards a Tax Period for which its total sales during the Base Period (referred to as taxable sales during the Base Period in the provisions of Paragraph l below--for purposes of the remainder of this chapter, the same) were less than 30 million yen, the Enterprise making said submission shall not apply the provisions of that paragraph regarding Taxable Transfers of Assets occurring in Japan during Tax Periods (excluding Tax Periods for which taxable sales during the Base Period exceeded 30 million yen) after the Tax Period following the Tax Period in which said submission was made (in case the Tax Period in which said submission was made is the Tax Period in which business was commenced or some other Tax Period as specified by cabinet order, said Tax Period shall apply).

5. When an Enterprise submitting a notification in accordance with the provisions of the previous paragraph decides to cease application of the provisions of that paragraph or to discontinue business, it must submit a notification to the director of the tax office having jurisdiction over the place of tax payment stating to that effect.

6. For purposes of the previous paragraph, excluding cases of discontinuation of business, the Enterprise submitting a notification in accordance with the provisions of Paragraph 4 may not submit a notification stating that it has decided to cease application of that paragraph if it is not after the first day of the Tax Period in which the day two years after the first day of the following Tax Period, as provided for in that paragraph 4, falls.

7. When submission of a notification in accordance with the provisions of Paragraph 5 has been made, the notification in accordance with the provisions of Paragraph 4 shall cease to have effect after the day following the last day of the Tax Period in which the submission was made.

8. In the event that, due to an unavoidable circumstance, there is a plan to apply the provisions of paragraph 4 and make a notification or to cease such application as provided for in paragraphs 4 or 5 and it is not possible to file by the day before the first day of the Tax Period, special exceptions to the application of the provisions of paragraph 4 and the previous paragraph shall be specified by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Articles 20, 20-2 and 22-2; Consumption Tax Law Enforcement Order Regulations Article 1.

Historical Notes:
1994 Amendments. Law No. 109, 1994, substituted "The amount received by multiplying the amount of consumption tax on the money amount of Refunds of Sales Price, as provided for in Article 38, Para.1, during the Base Period by 1.25." for "The amount of consumption tax on the money amount of Refunds of Sales Price, as provided for in Article 38, para. 1, during the Base Period." in paragraph 2(b); deleted "(excluding those Tax Periods which are not exempted from the obligation to pay consumption tax in accordance with the provisions of the next Article, Paragraphs 1 or 2, Article 11, or Article 12, Paragraphs 1 through 5 (hereafter, as regards this paragraph, "Inheritance Tax Period"))" after "Tax Period" and "and Inheritance Tax Periods" after "Based Period exceeded 30 million yen" in paragraph 4; and added paragraph 8.

Article 10 (Special Exemption from Tax Liability in case of Inheritance)

1. When a Successor (for purposes of this paragraph and the next, this shall exclude Successors who are not exempt from the obligation to pay consumption tax by virtue of having submitted a notification in accordance with the provisions of Paragraph 4 of the previous Article) who has taxable sales of less than 30 million yen during the Base Period for the year in which the Inheritance occurred succeeds to the business of a Predecessor who had taxable sales of more than 30 million yen during said Base Period, the provisions of the main text of Article 9, Para.1 shall not apply to Taxable Transfers of Assets in the period between the day following the day said Inheritance inures to said Successor and December 31 of that year.

2. In case a Successor succeeding to the business of a Predecessor as an Inheritance in the year or two years before the year in question has taxable sales during the Base Period of the year in question of less than 30 million yen when the total of the taxable sales during said Base Period of said Successor and the taxable sales on the Inheritance during said Base Period of the Predecessor exceed 30 million yen, the provisions of the main text of the previous Article, Paragraph 1, shall not apply regarding the Taxable Transfers of Assets of said Successor during that year.

3. Necessary provisions concerning application of the provisions of the previous two paragraphs to the calculation of taxable sales during the Base Period of a Predecessor in case of an Inheritance where two or more Successors succeed to a partitioning of the entire business of a Predecessor, which business has two or more business locations, shall be specified by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Article 21

Article 11 (Special Exemption from Tax Liability in case of Merger)

1. In case of a merger in said Fiscal Year (for purposes of this paragraph and the next, this shall exclude cases of merger in which a Juridical Person is established), when the Merged Corporation (for purposes of this paragraph and the next, this shall exclude Merged Corporations who are not exempted from the obligation to pay consumption tax by virtue of having submitted a notification in accordance with the provisions of Article 9, Para.4), whose taxable sales during the Base Period for the Fiscal Year in which the merger occurred (hereafter for purposes of this paragraph, the "Merger Fiscal Year") are less than 30 million yen, succeeds to the business of a Merging Corporation whose taxable sales during the Base Period for the Merger Fiscal Year exceeded 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply to Taxable Transfers of Assets in the period from the day of said merger of said Merged Corporation to the last day of said Merged Fiscal Year.

2. When, in the case of a merger during the period from the day following the first day of the Base Period for the Fiscal Year to the day before the opening day of said Fiscal Year, the taxable sales during the Base Period for the Fiscal Year of the Merged Corporation are less than 30 million yen and the total amount of the taxable sales during the Base Period for the Fiscal Year of said Merged Corporation and the taxable sales of the Merging Corporation of the merger during the period corresponding to said Base Period, calculated according to the specifications of cabinet orders, exceed 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply regarding the Taxable Transfers of Assets of said Merged Corporation during said Fiscal Year.

3. In case of a merger (for purposes of this paragraph and the next, this shall be limited to cases of mergers in which a Juridical Person is established), when the taxable sales during the Base Period for the Fiscal Year in which said merger occurs for any of the Merging Corporations of the merger exceeds 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply regarding the Taxable Transfers of Assets of the Merged Corporation succeeding to that business (excluding Merged Corporations not exempted from the obligation to pay this consumption tax by virtue of having submitted a notification in accordance with the provisions of Article 9, Para.4--for purposes of the next paragraph, the same) during the Fiscal Year in which it is established.

4. In the case of a merger during the period from the day two years before the opening day of said Fiscal Year to the day before the opening day of said Fiscal Year, when the taxable sales of said Merged Corporation during the Base Period provided for in Article 9, Para.1 of said Fiscal Year are less than 30 million yen and the total of the taxable sales of said Merged Corporation during said Base Period (the amount remaining after deducting the Total Amount of Refunds of Sales Price Net of Tax from the total Price Amount for a Transfer of Assets in Japan--for purposes of the next paragraph, the same) and the taxable sales of the Merging Corporation of the merger during the period corresponding to said Base Period, calculated according to the specifications of cabinet orders (in case there are no taxable sales during said Base Period of said Merged Corporation or in other cases specified by cabinet order, the amount shall be that specified by cabinet order), exceed 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply regarding the Taxable Transfers of Assets of the Merged Corporation succeeding to that business in said Fiscal Year.

Cross Reference: Consumption Tax Law Enforcement Order Article 22

Article 12 (Special Exemption from Tax Liability in case of Partition)

1. In case a Juridical Person has partitioned (hereafter, for purposes of this Article, this shall be the establishment of a new corporation by a Juridical Person using specified contributions as provided for in the Corporation Tax Law, Article 51 (Inclusion as pecuniary loss of a condensed amount of negotiable securities acquired by specified contribution in kind), Para.1, and the handing over to said newly established corporation of all or a part of its business), when the taxable sales of the Juridical Person undertaking said partition (hereafter for purposes of this Article, "Partition Parent Company") during the Base Period for the Fiscal Year in which said partition has occurred exceeds 30 million yen, the provisions of Article 9, Para.l shall not apply to Taxable Transfers of Assets by corporations established by said partition (hereafter for purposes of this Article, "Partition Subsidiary"), other than those Juridical Persons not exempted from the obligation to pay consumption tax in accordance with the provisions of the main text of Article 9, Para.1, in the Fiscal Year in which said establishment occurred.

2. In case a Partition Subsidiary established by partition occurring during the period from the day two years before the opening day of said Fiscal Year to the day before the opening day of said Fiscal Year falls under all of the specific necessary conditions as of the last day (in case said partition occurs after the day before the day one year prior to the opening day of said Fiscal Year, the day before the opening day of said Fiscal Year) of the Base Period for Said Fiscal Year, and the total of the amount of Base Period Taxable Sales of the Partition Subsidiary, and the amount of Taxable Sales of the Partition Parent Company in the period corresponding to said Base Period, calculated according to the specifications of cabinet orders (in case said Partition Subsidiary has no Taxable Sales during said Base Period, the amount specified in cabinet order), exceeds 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply regarding Taxable Transfers of Assets during said Fiscal Year (this shall be limited to a Fiscal Year whose Base Period, as provided for in Article 9, Para.1, had Taxable Sales of less than 30 million yen) by said Partition Subsidiary (excluding Partition Subsidiaries not exempted from the obligation to pay consumption tax by virtue of having submitted notification in accordance with the provisions of Article 9, Para.4).

3. In the case of a Juridical Person effecting a partition during the period from the day following the first day of the Base Period of said Fiscal Year to the day before the day one year before the opening day of said Fiscal Year, when the Partition Subsidiary of said partition falls under all of the specific necessary conditions as of the last day of said Base Period and the total of the amount of Base Period Taxable Sales of the Partition Parent Company of said partition (excluding Partition Companies not exempted from the obligation to pay consumption tax by virtue of having submitted notification in accordance with the provisions of Article 9, Para.4) and the amount of Taxable Sales of said Partition Subsidiary in the period corresponding to said Base Period, calculated according to the specifications of cabinet orders, exceeds 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply regarding Taxable Transers of Assets during said Fiscal Year (this shall be limited to a Fiscal Year whose Base Period had Taxable Sales of less than 30 million yen) by said Partition Parent Company.

4. In case a Partition Subsidiary established pursuant to a partition occurring before the day before the day two years before the opening day of said Fiscal Year falls under all of the specific necessary conditions as of the last day of the Base Period of said Fiscal Year and the total of the amount of said Base Period Taxable Sales of said Partition Subsidiary and the amount of Taxable Sales of the Partition Parent Company of said partition in the period corresponding to said Base Period, calculated according to the specifications of cabinet orders, exceeds 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply regarding Taxable Transers of Assets during said Fiscal Year (this shall be limited to a Fiscal Year whose Base Period had Taxable Sales of less than 30 million yen) by said Partition Subsidiary (excluding Partition Subsidiaries not exempted from the obligation to pay consumption tax by virtue of having submitted notification in accordance with the provisions of Article 9, Para.4).

5. In the case of a Juridical Person effecting a partition before the first day of the Base Period of said Fiscal Year, in case the Partition Subsidiary of said partition falls under all of the specific necessary conditions as of the last day of the Base Period of said Fiscal Year of the Partition Parent Company of said partition and the total of the amount of said Base Period Taxable Sales of said Partition Parent Company and the amount of Taxable Sales of said Partition Subsidiary in the period corresponding to said Base Period, calculated according to the specifications of cabinet orders, exceeds 30 million yen, the provisions of the main text of Article 9, Para.1 shall not apply regarding Taxable Transfers of Assets during said Fiscal Year (this shall be limited to a Fiscal Year whose Base Period had Taxable Sales of less than 30 million yen) by said Partition Parent Company (excluding Partition Parent Companies not exempted from the obligation to pay consumption tax by virtue of having submitted notification in accordance with the provisions of Article 9, Para.4).

6. The specific necessary conditions provided for in Paragraphs 2 through 5 above shall be those necessary conditions mentioned below. 1. The total number of issued shares in, or more than 50% of the capital of, said Partition Subsidiary are held by said Partition Parent Company or said Partition Parent Company and a specially-related entity by specified in cabinet order. 2. All or an appropriate part of the business of said Partition Subsidiary is of the same type as that of said Partition Parent Company.

Cross Reference: Consumption Tax Law Enforcement Order Articles 23 and 24.

Article 12-2 (Exception for Exemption of Tax Liability for Juridical Persons without a Base Period)

As regards those Juridical Persons without a Base Period for the Fiscal Year (excluding Social Welfare Corporations provided for in the Social Welfare Services Law (1951, Law No. 45), Article 22 (Definitions) and other Juridical Persons as specified by cabinet order mentioned in Appendix 1 which were principally established for purposes of effecting transfers of assets) which are Juridical Persons with assets or subscription in an amount of more than ten million yen on the commencement day of said Fiscal Year (Excluding Juridical Persons which are not exempt from consumption tax liability by submitting a notification in accordance with the provisions of Article 9(4). Hereafter for purposes of this Article, "Newly Established Juridical Persons") the provisions of the main text of Article 9, Para.1 shall not apply to Taxable Transfers of Assets in Fiscal Years (excluding Fiscal Years which are not exempted from consumption tax liability according to the provisions of Article 11, paragraphs 3 or 4 or the previous Article, paragrpahs 1 or 2) of said Newly Established Juridical Person without a Base Period.

Historical Note
1994 Amendments: This provision inserted by Law No. 109, 1994.

Article 13 (Determination of the Nature of the Person Making a Transfer of Assets)

In case a person considered to have made a Transfer of Assets, so far as the law is concerned, is a mere holder of a title deed and is not given any compensation for that Transfer of Assets but a person other than that person is given compensation for that Transfer of Assets, the provisions of this law shall apply to the person who was given compensation for said Transfer of Assets as if he had made the transfer.

Article 14 (Reversion of Transfer of Assets by Property inTrust)

1. Regarding Transfers of Assets which are Property in Trust, the person mentioned in each item below according to the classification of case mentioned in said item shall be considered to be the owner of that Property in Trust. Provided, that the foregoing shall not apply to Transfers of Assets belonging to Property in Trust pertaining to joint trusts, securities investment trusts, public welfare trusts as provided for in the Corporation Tax Law, Article 37 (Exclusion of Donations from Pecuniary Losses), Para.5, or qualified retirement annuity contracts, welfare pension fund contracts, worker's asset-formation benefit contracts, or worker's asset-formation fund benefit contracts as provided for in the Corporation Tax Law, Article 84 (Computation of the Reserve Amount for Retirement Annuities, Etc.), Para.1, or trusts pertaining to contracts provided for in the National Pensions Act which concluded the national pension fund (1959, Law No. 141), Article 128 (Operation of the Fund), Para.3.

In case a beneficiary is specified, that beneficiary.
In case a beneficiary is not specified or is nonexistent, the trustee of the trust pertaining to the Property in Trust.

2. Joint trusts, as provided for in the previous paragraph, shall be money trusts undertaken by trust companies (including, in accordances with the Law Concerning the Combination of the Trust Business of Financial Institutions (1943, Law No. 43), financial institutions as provided for in that law, Article 1 (Definitions), para. 1, which operate trust businesses as provided for in that paragraph) which operate by joining the Property in Trust of multiple trustees who do not work together, and securities investment trusts, as provided for in the previous paragraph, shall be securities investment trusts as provided for in the Securities Investment Trust Act (1951, Law No. 198), Article 2 (Definitions), Para.1 (including trusts provided for in Article 2-2 (Trusts Considered Securities Investment Trusts)) or similar foreign trusts.

3. In the case of Paragraph 1, the determination of whether or not a beneficiary has been specified or exists shall be made according to the state of things at the time the Transfer of Assets belonging to Property in Trust provided for in that paragraph occurs.

Historical Notes:
1992 Amendments. Law No. 87 substituted ", in accordances with the Law Concerning the Combination of the Trust Business of Financial Institutions (1943, Law No. 43), financial institutions as provided for in that law, Article 1 (Definitions), para. 1, which operate trust businesses as provided for in that paragraph" for "banks which combine the business of trusts" and "the previous paragraph" for "the same paragraph".

Article 15 (Special Exceptions for the Timing of Transfers of Assets by Installment Sale)

1. In case an Enterprise effects an installment sale of Inventory Assets or services (hereafter for purposes of this Article, Installment Sale shall be as provided for in the Income Tax Law, Article 65 (Reverting Time for Receipts and Expenses Pertaining to Installment Sales), Para.1 or the Corporation Tax Law, Article 62 (Revertible Fiscal Period for Profits and Expenses Pertaining to Installment Sales), Para.1), when accounting is made according to the installment basis method provided for in those provisions as regards Price Amounts pertaining to all Installment Sales of Inventory Assets or services in order for said Enterprise to apply those provisions, regarding that portion of the installment amount pertaining to the Installment Sale of said Inventory Assets or services the payment due date for which has not arrived in the Tax Period in which said Installment Sale was made, it shall be considered a Transfer of Assets not effected by said Enterprise in said Tax Period and, for said Tax Period, the Price Amount pertaining to that portion may be deducted from the Price Amount pertaining to said Installment Sale.

2. That portion considered, in accordance with the provisions of the previous paragraph, a Transfer of Assets not occurring in the Tax Period in which said Installment Sale was made, shall be considered, in accordance with specifications in cabinet orders, a Transfer of Assets in proportion to each installment payment effected by said Enterprise in each Tax Period in which falls a payment due date for an installment payment pertaining to said Installment Sale. Provided, that the foregoing shall not apply regarding Tax Periods after the Tax Period in which belongs December 31 of the year in which accounting, as provided for in the proviso contained in the Income Tax Law, Article 65, Para.1, was not made, or Tax Periods after the Tax Period in which belongs the last day of the Fiscal Year in which accounting, as provided for in the proviso contained in the Corporation Tax Law, Article 62, Para.1, was not made, in case the proviso contained in the Income Tax Law, Article 65, Para.1 or the proviso contained in the Corporation Tax Law, Article 62, Para.1 shall come to apply.

3. Those Enterprises intending to apply the provisions of Paragraphs 1 and 2 above shall make an addition to that effect to the return made in accordance with the provisions of Article 45, Para.1 (this includes post-deadline returns as provided for in the General Law of National Taxes, Article 18 (Post-Deadline Return), Para.2--for purposes of the next Article, Paragraph 3, Article 17, Para.3 and Article 18, Para.2, the same).

4. In addition to the provisions of the previous paragraph, in case of the death of a Sole Proprietorship applying the provisions of Paragraph 1 above, or in case the Juridical Person applying the provisions of that paragraph is consumed in a merger, or in case the Enterprise applying the provisions of that paragraph is also applying the provisions of the main text of Article 9, Para.1, special exceptions for the timing of Transfers of Assets pertaining to transfers of Inventory Assets or provision of services occurring by the installment sale method and other necessary provisions concerning application of the provisions of Paragraphs 1 or 2 above shall be specified by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Articles 25 through 30.

Article 16 (Special Exceptions for the Timing of Transfers of Assets by Deferred Payment Conditioned Sale)

1. In case an Enterprise effects a deferred payment conditioned sale (deferred payment conditioned sale as provided for in the Income Tax Law, Article 66, (Reverting Time for Receipts and Expenses Pertaining to Deferred Payment Conditioned Transfer), Para.l) or a deferred payment conditioned transfer (deferred payment conditioned transfer as provided for in the Corporation Tax Law, Article 63 (Revertible Fiscal Year for Profits and Expenses Pertaining to Deferred Payment Conditioned Transfer), Para.1) of an asset (for purposes of this paragraph and Paragraph 4 below, in case said Enterprise is a Sole Proprietorship, this shall be limited to Inventory Assets), or in case it effects a Taxable Transfer of Assets pursuant to a deferred payment conditioned contract (deferred payment conditioned contract as provided for in the Income Tax Law, Article 66, Para.1 or the Corporation Tax Law, Article 63, Para.1) for construction (including manufacture--for purposes of Paragraph 4 below, the same), when accounting is made according to the deferred payment basis method provided for in those provisions in order for said Enterprise to apply those provisions as regards Price Amounts pertaining to deferred payment conditioned sales or deferred payment conditioned transfers or deferred payment conditioned contracts (excluding any of these three from which losses arise; hereafter, for purposes of this Article, collectively referred to as, "Deferred Payment Conditioned Sales"), regarding that portion of the installment amount which is for said assets or the object of contracts pertaining to said Deferred Payment Conditioned Sale the payment due date for which has not arrived in the Tax Period in which said Deferred Payment Conditioned Sale occurred (excluding payments received in said Tax Period), it shall be considered that said Enterprise did not effect a Transfer of Assets in said Tax Period and, for said Tax Period, the Price Amount pertaining to that portion may be deducted from the Price Amount pertaining to said Deferred Payment Conditioned Sale.

2. That portion considered, in accordance to the provisions of the previous paragraph, a Transfer of Assets not occurring in the Tax Period in which said Deferred Payment Conditioned Sale was made, shall be considered, in accordance with specifications in cabinet orders, a Transfer of Assets in proportion to each installment payment effected by said Enterprise in each Tax Period in which falls a payment due date for an installment payment pertaining to said Installment Sale. Provided, that the foregoing shall not apply regarding Tax Periods after the Tax Period in which belongs December 31 of the year in which accounting, as provided for in the proviso contained in the Income Tax Law, Article 66, Para.1, was not made, or Tax Periods after the Tax Period in which belongs the last day of the Fiscal Year in which accounts were closed without accounting, as provided for in the proviso contained in the Corporation Tax Law, Article 63, Para.1, being made, in case the proviso contained in the Income Tax Law, Article 66, Para.1, or the proviso contained in the Corporation Tax Law, Article 63, Para.1, shall come to apply.

3. Those Enterprises intending to apply the provisions of Paragraphs 1 and 2 above shall make an addition to that effect to the return made in accordance with the provisions of Article 45, Para.1.

4. In addition to the provisions of the previous paragraph, in case of the death of a Sole Proprietorship applying the provisions of Paragraph 1 above, or in case the Juridical Person applying the provisions of that paragraph is consumed in a merger, or in case the Enterprise applying the provisions of that paragraph is also applying the provisions of the main text of Article 9, Para.1, special exceptions for the timing of Deferred Payment Conditioned Sale of assets or Transfers of Assets pertaining to construction work and other necessary provisions concerning application of the provisions of Paragraphs 1 or 2 above shall be specified by cabinet order.

5. Regarding special exceptions for the timing of Transfers of Assets in case of Deferred Payment Conditioned Transfers of Assets which are the cause of Forestry Income or Transfer Income as provided for in the Income Tax Law, Article 132 (Deferred Payment of Income Tax Amount Pertaining to Deferred Payment Conditioned Transfer), Para.1, by a Sole Proprietorship, they shall be specified by cabinet order according to the provisions of each of the above paragraphs.

Cross Reference: Consumption Tax Law Enforcement Order Articles 31 through 37.

Article 17 (Special Exceptions for the Timing of Transfers of Assets by Long-Term Construction Contractors)

1. In case an Enterprise performs a Transfer of Assets based on an agreement pertaining to a contract for long-term construction work (hereafter, for purposes of this Article, long-term construction work as provided for in the Income Tax Law, Article 67 (Reverting Time for Receipts and Expenses Pertaining to a Contract for Long-Term Construction), Para.1, or the Corporation Tax Law, Article 64 (Revertible Fiscal Year for Profits and Expenses Pertaining to a Contract for Long-Term Construction), Para.1), when accounting is made according to the construction progress basis method provided for in those provisions in order for said Enterprise to apply those provisions as regards Price Amounts pertaining to that long-term construction contract (excluding those which can be recognized as losses), regarding that portion of the object of said long-term construction which, according to said method of accounting, is a receipt amount or a profit amount, this may be considered a Transfer of Assets effected by said Enterprise in the Tax Period in which belongs December 31 of the year in which those receipt amounts were counted as gross receipts or in the Tax Period in which belongs the last day of the Fiscal Year in which those profit amounts were counted as profit. Provided, that the foregoing shall not apply regarding years in which accounting, as provided for in the proviso contained in the Income Tax Law, Article 66, Para.1, Item 1, was not made or Tax Periods after the Tax Period in which belongs December 31 of the year in which the reason, as provided for in the proviso contained in Item 2 of the same paragraph, arose, or Fiscal Years in which accounts were closed without accounting, as provided for in the proviso contained in the Corporation Tax Law, Article 66, Para.1, being made, or Tax Periods after the Tax Period in which belongs the last day of the Fiscal Year in which the reason, as provided for in the proviso contained in Item 2 of the same paragraph, arose, in case the proviso contained in the Income Tax Law, Article 67, Para.1, or the proviso contained in the Corporation Tax Law, Article 64, Para.1, shall come to apply.

2. In case an Enterprise applying the provisions of the previous paragraph effects delivery of the object of the long-term construction of that paragraph, regarding those portions of that object which, according to the provisions of that paragraph, are Transfers of Assets occurring in each tax period from the Tax Period in which belongs the commencement day of said long-term construction to the Tax Period immediately prior to the Tax Period in which belongs the delivery day, they shall not be Transfers of Assets in the Tax Period in which belongs the delivery day and the total Price Amount pertaining to said portions shall be deducted from the Price Amount pertaining to the contract for said long-term construction.

3. Enterprises intending to apply the provisions of the previous two paragraphs shall make an addition to that effect to the return made in accordance with the provisions of Article 45, Para.1.

4. In addition to the provisions of the previous paragraph, in case of the death of a Sole Proprietorship applying the provisions of Paragraph 1 above or in case the Juridical Person applying the provisions of that paragraph is consumed in a merger, special exceptions for the timing of Transfers of Assets pertaining to long-term construction work and other necessary provisions concerning application of the provisions of that paragraph or Paragraph 2 shall be specified by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Articles 38 and 39.

Article 18 (Special Exceptions for the Timing of Transfers of Assets by Small-Scale Enterprises)

1. The timing of a Transfer of Assets or a Taxable Purchase by a Sole Proprietorship applying the provisions of the Income Tax Law, Article 67-2 (Reverting time of receipts and expenses of small-scale enterprises) may be considered to be the day on which the Price Amount for that Transfer of Assets was received or the day on which the amount of expenditure for the Taxable Purchase was paid.

2. Enterprises intending to apply the provisions of the previous paragraph shall make an addition to that effect to the return made in accordance with the provisions of Article 45, Para.1.

3. In addition to the provisions of the previous paragraph, special exceptions for the timing of Transfers of Assets and Taxable Purchases in case a Sole Proprietorship applying the provisions of Paragraph 1 above becomes ineligible to do so and other necessary provisions concerning application of the provisions of that paragraph shall be specified by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Article 40; Consumption Tax Law Enforcement Order Regulations Article 12.

Article 19 (Tax Period)

1. In this law, "Tax Period" shall be the period in each of the items below according to the class of Enterprise mentioned in said item.

For Sole Proprietorships (excluding those Sole Proprietorships mentioned in Item 3 below), the period from January 1 to December 31.
For Juridical Persons (excluding those Juridical Persons mentioned in Item 4 below), the fiscal year.
For Sole Proprietorships submitting notification to the director of the tax office having jurisdiction over the place of tax payment that they are shortening the period provided for in Item 1 above, each of the periods of January 1 through March 31, April 1 through June 30, July 1 through September 30, and October 1 through December 31.
For Juridical Persons whose Fiscal Year goes beyond March who submit notification to the director of the tax office having jurisdiction over the place of tax payment that they are shortening the period provided for in Item 2 above, each of the periods three months long beginning with the opening day of said Fiscal Year (when the last period is less than three months, that less than three month period shall also be a Tax Period).

2. Notification in accordance with the provisions of Items 3 or 4 of the previous paragraph shall become effective after the starting day of the period following the period specified in these provisions (in case the period in which said Submission Day (see below) falls is the period in which business is commenced, or in case of other periods specified by cabinet order, said period) as being the one in which the day on which notification was submitted in accordance with these provisions (hereafter, for purposes of this paragraph, "Submission Day") falls. In this case, the Tax Period shall be, for Sole Proprietorships, the period from January 1 of the year in which the Submission Day falls to the day before the day the notification becomes effective, and for Juridical Persons, the period from the opening day for the Fiscal Year in which the Submission Day falls to the day before the day the notification becomes effective.

3. When an Enterprise which has submitted a notification in accordance with the provisions of Paragraph 1, Items 3 or 4 decides to stop applying these provisions or discontinues business, it must submit a notification stating such intent to the director of the tax office having jurisdiction over that place of tax payment.

4. In the case of the previous paragraph, an Enterprise which has submitted notification according to the provisions of Paragraph 1, Items 3 or 4, may not, except in the case of discontinuing business, submit the notification of the previous paragraph within two years after the day notification under Paragraph 1 was made.

5. When submission of notification in accordance with the provisions of Paragraph 3 has been made, the effectiveness of notifications in accordance with the provisions of Paragraph 1, Items 3 or 4 shall expire on the day following the last day of the Tax Period in which the day of that submission falls. In that case, the Tax Period shall be, for Sole Proprietorships submitting said notification in the period from January 1 to September 30 of that year, the period from said following day to December 31 of the year in which the day of said submission falls and, for Juridical Persons submitting said notification in the period from the opening day of that Fiscal Year to the last day of the period immediately before the last quarter of that Fiscal Year, the period from said following day to the closing day of the Fiscal Year in which the day of said submission falls.

Cross Reference: Consumption Tax Law Enforcement Order Article 41; Consumption Tax Law Enforcement Order Regulations Article 13.

Article 20 (Place of Tax Payment for Sole Proprietorships)

The place of payment for consumption tax on Transfers of Assets by Sole Proprietorships shall be the place mentioned in each item below according to whether the case mentioned in said item applies to that Sole Proprietorship.

In case the domicile is in Japan, the place of domicile.
In case the domicile is not in Japan and the residence is, the place of residence.
In case the person has neither a domicile nor a residence in Japan but has an office or other corresponding place in Japan from which he conducts that business (hereafter, for purposes of this Article and Article 22, "Office"), the place of that Office (in case there is more than one Office, the place of the main Office).
For those cases not mentioned in any of the previous three items, the place specified by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Article 42.

Article 21 (Special Exception to the Place of Tax Payment for Sole Proprietorships)

1. When those Sole Proprietorships with a residence in addition to a domicile in Japan who intend to apply the provisions of Article 16 (Special Exception to the Place of Tax Payment), Paragraph 1 of the Income Tax Law (excluding those persons designating their place of tax payment in accordance with the provisions of Article 23, Para.1 below), submit documentation in accordance with the provisions of Article 16, Para.3 of that law, notwithstanding the provisions of the previous Article, Item 1, the place of domicile shall be replaced by the place of residence as the place of payment for consumption tax on Transfers of Assets after the day of that submission.

2. When a Sole Proprietorship who has a domicile or residence in Japan and has an Office outside of that place of domicile or place of residence and who wishes to apply the provisions of the Income Tax Law, Article 16, Para.2 (excluding those persons who have had a place of tax payment designated for them in accordance with the provisions of Article 23, Para.1) submits documentation in accordance with the provisions of that Article 16, Para.4, the place for payment of consumption tax on Transfers of Assets after the day of that submission, notwithstanding the provisions of the previous Article, Items 1 or 2, shall be the place of that Office (in case there are two or more offices, the place of the main one--for purposes of the next paragraph, the same).

3. When a Sole Proprietorship whose place for payment of consumption tax on Transfers of Assets is, in accordance with the provisions of the previous two paragraphs, his residence or the place of his Office, submits documentation in accordance with the provisions of the Income Tax Law, Article 16, Para.5, the place for payment of consumption tax on Transfers of Assets after the day of that submission shall be that place of domicile (for those persons who do not have a domicile and whose place of payment of consumption tax on Transfers of Assets is the place of their Office, in accordance with the provisions of the previous paragraph, the place of residence).

4. In case the Sole Proprietorship has died, the place of tax payment for consumption taxes on Transfers of Assets by that deceased person shall be not the place of tax payment for consumption taxes on Transfers of Assets by that Successor but the place of tax payment for consumption taxes on Transfers of Assets for the deceased person at the time of his death.

Article 22 (Place of Tax Payment for Juridical Persons)

The place of payment for consumption tax on Transfers of Assets by Juridical Persons shall be the place mentioned in each item below according to whether the case mentioned in said item applies to that Juridical Person. 1. In case of a Juridical Person having a main store or a main office in Japan (for purposes of the next item, "Domestic Juridical Person"), the place of that main store or main office. 2. In case of a Juridical Person other than a Domestic Juridical Person who has a main store or a main office in Japan, the place of that main store or main office. 3. In cases other than the cases mentioned in the previous two items, the place specified by cabinet order.

Cross Reference: Consumption Tax Law Enforcement Order Article 43.

Article 23 (Designation of the Place of Tax Payment)

1. In case the place of tax payment provided for in the previous three Articles viewed from the circumstances of Transfers of Assets effected by a Sole Proprietorship or a Juridical Person is found to be an unsuitable place for the payment of consumption tax on those Transfers of Assets, the director of the regional tax bureau having jurisdiction of that place of tax payment (in cases specified by cabinet order, the Director of the National Tax Administration) may, notwithstanding these provisions, designate a place for payment of the consumption tax on those Transfers of Assets.

2. When the director of the regional tax bureau has designated a place for payment of consumption taxes on Transfers of Assets in accordance with the provisions of the previous paragraph, it shall notify the Sole Proprietorship or Juridical Person of that paragraph of that effect in writing.

Cross Reference: Consumption Tax Law Enforcement Order Article 44.

Article 24 (Effect of Reporting in Case of Repeal of the Action Designating the Place of Tax Payment)

Even in case of a repeal, in accordance with a decision regarding formal exceptions or a judgment or ruling regarding a request for reconsideration, of action designating the place for payment of consumption taxes on Transfers of Assets in accordance with the provisions of the previous Article, Paragraph 1, in the period from the time of the action that is the object of that repeal to the time of the repeal, the repeal of that action shall not influence the effectiveness of the submission of returns, motions, requests, notifications, and other documents relating to consumption tax, of payments, and of the actions of the director of the National Tax Administration, the director of the regional tax bureau or the director of the tax office (excluding the action which is the object of that repeal) all of which shall be made at the place of tax payment of the Enterprise pertaining to such action as if it were the place of tax payment which is the object of the repeal.

Article 25 (Notification of Transfer of Place of Tax Payment)

In case there is a transfer of the place of tax payment for consumption tax on Transfers of Assets (excluding cases of submission of documents provided for in the provisions of Article 21, Paragraphs 1 through 3 or transfers of the place of tax payment for consumption tax on Transfers of Assets in accordance with the provisions of Article 23, Para.1), the Enterprise must, without delay, submit a writing to that effect to the director of the tax office having jurisdiction over the pre-transfer place of tax payment and to the director of the tax office having jurisdiction over the post-transfer place of tax payment.

Cross Reference: Consumption Tax Law Enforcement Order Regulations Article 14.

Article 26 (Place of Tax Payment for Foreign Goods)

The place for tax payment for consumption tax on removal of Foreign Goods from a Bonded Area shall be the place in which the Bonded Area is located.

Article 27 (Place of Tax Payment in case of Transfer of Goods Purchased in a Market for Export Merchandise)

1. The place of tax payment for consumption tax on transfers of merchandise falling under the provisions of the main text of Article 8, Para.3 shall be the port of departure or place of domicile or residence provided for in that paragraph.

2. The place of tax payment for consumption tax on transfers of merchandise falling under the provisions of the main text of Article 8, Para.5 shall be the place where the merchandise is located at the time it is transferred or received (in the case of a consent under the proviso of Article 8, Para.4, at the time of that consent).

Temple University Japan