METI
Font Size Change
S
M
L
Easy Web Browsing tool

Small and Medium Enterprise Agency Announcement of METI's Efforts Regarding Measures for Securing Smooth and Appropriate Transfer of Consumption Tax as of the End of September 2017

Following the rise in the consumption tax rate to 8% in April 2014, the Ministry of Economy, Trade and Industry (METI) has been conducting a variety of measures for ensuring the smooth and appropriate transfer of the increased consumption tax. METI hereby announces the compiled results of the specific measures undertaken for that purpose as of the end of September 2017.

METI will continue to prevent the refusal to transfer the consumption tax as well as to strictly address violations of related regulations through the monitoring of consumption tax transfers and policing under such regulations.

Outline of efforts
1. Efforts to monitor and police violations

  • Following on from the FY2016 surveys, in FY2017, METI also has been conducting full-scale written surveys to collect information on the refusals of buyers to pay the additional tax to their sellers.
  • As of the end of September 2017, METI and the Japan Fair Trade Commission (JFTC) had provided instruction to a total of 3,616 businesses, requested action from eight businesses, and sent recommendations to 40 businesses (figures are for the total number of cases METI and the JFTC dealt with).
  • Inspectors to monitor buyers’ refusals to pay the additional tax are patrolling certain areas and taking actions, such as collecting information on such refusals and providing counseling.

2. Efforts to raise public awareness and provide consultation services

  • METI has prepared about 1.81 million copies of guides and manuals to help the public easily understand the measures for securing smooth and appropriate consumer tax transfers and has distributed them to businesses across Japan.
  • As of the end of September 2017, approximately 23,000 seminars concerning such measures had been held at SME associations and government-approved support organizations, with approximately 520,000 people attending.
  • METI held explanatory meetings so as to inform related industry associations and businesses about the guidelines for promoting fair subcontracting practices that were revised to include compliance for the smooth and appropriate transfer of consumption taxes.
  • Four SME associations have opened 2,324 consultation counters to provide the public with face-to-face consultation services. As of the end of September 2017, about 1,880,000 cases had been accepted.
  • The Small and Medium Enterprise Agency (SMEA) has opened a consultation counter on the internet for receiving public petitions with full consideration for security. Please take advantage of this website for consultation services concerning tax transfers. Note that the SMEA is still providing telephone consultation services.
  • METI instituted a monitoring survey for businesses concerning the current situation of consumption tax transfers, aiming to periodically ascertain the situation. In the written survey in August 2017, 89.4% of the target businesses answered that all of the tax was transferred for transactions between businesses, and 78.7% answered the same for transactions between businesses and consumers. Meanwhile, 1.6% of the target businesses answered that the tax was not transferred at all for transactions between businesses, and 3.1% answered the same for those between businesses and consumers.

Appendix

Release date

October 20, 2017

Divisions in Charge

  • Fair Trade Division, Business Environment Department, Small and Medium Enterprise Agency
  • Competition Enhancement Office, Economic and Industrial Policy Bureau, Ministry of Economy, Trade and Industry
Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.