Consumption Tax

No.1　Taxable Sales

Consumption tax is levied on “Taxable Sales”. “Taxable sales” mean sales that satisfy all of the following four conditions.

1. (1) Effectuated in Japan
2. (2) Effectuated by a business for its business purposes
3. (3) Effectuated for a compensation
4. (4) Effectuated by the transfer or lease of assets or by the provision of services
5.   (Referred to as “transfer of assets etc.”)

For example, machinery rental fees and proceeds from the sale of machinery, buildings and other business assets are included in taxable sales in addition to such things as proceeds from sales of products, contract work and services.

（国税庁HPより）