A simplified tax credit system for consumption tax purpose is applicable to individuals and corporations whose taxable sales for the base period was 50 million yen or less.
In order to apply the simplified method for the calculation of input consumption tax to be offcet against output consumption tax, tax payers must submit the application to the competent tax office.
|Input Consumption tax||=||Output consumption tax calculated based on taxable sales||×||Assumed purchase rate|
|Tax due||=||Output consumption tax||－||Input consumption tax|
|Type of business||Assumed purchase rate|
Manufacturing, construction, mining,
agriculture, fishing and utilities
Other business that does not fall under other type
Type 4 includes Food services
|Type 5||Transportation,Communication,Financial services, Insurance services, Services excluding Food services||50%|
|Type 6||Real estate||40%|