What to do if you forget to submit the simplified taxation selection notification form

When we elect the simplified (flat-rate) method for consumption tax,

we generally must file a notification by the last day of the previous taxable period.

Such notifications are sometimes unintentionally missed.

For example, if a non-business heir inherits a rental property,

the filing deadline is December 31 of the year the decedent died.

With funeral arrangements and other procedures, forgetting to file is understandable.

If the simplified method would greatly reduce the consumption tax owed, the heir will naturally want to apply it.

Is there any way to fix a missed notification?

Shorten the tax period

One option is to shorten the taxable period.

We can actually shorten the consumption-tax period.

This rule was created so exporters can get refunds faster.

However, any business can shorten the period by filing a notification.

The filing deadline for the simplified-tax notification is the last day of the prior taxable period.

So we adjust the taxable period.

For example,

if the simplified-tax notification was missed by December 31 of the year the decedent died,

file these forms by March 31 of the following year:

• Notification of Election for the Simplified Consumption Tax System
  
• Notification of Selection/Change for Special Taxable Periods (Consumption Tax)

The January–March period will be calculated under the general method.

From April onward, the simplified method can apply.

We can shorten the period to one month or three months.

Considering the filing burden, a three-month (quarterly) period is usually better.

Note that once we shorten the taxable period, we must keep it for two years.

During that time, we must file once every three months.

We recommend weighing the simplified system’s benefits against the extra filing burden and making a balanced decision.

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都築太郎税理士事務所/Tsuzuki Taro Tax Accountant Office

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