How to interpret the impact of Announcement No. 1 of the State Taxation Administration in 2018 on refining and chemical enterprises

For gasoline, diesel, naphtha, fuel oil, and lubricants purchased externally, imported, or obtained through commissioned processing that are used in the continuous production of taxable refined oil products, the amount of consumption tax already paid shall be calculated and deducted based on the special invoices for refined oil products confirmed through the VAT invoice selection and confirmation platform, the special payment receipts for customs import consumption tax, as well as the tax payment receipts (for withholding and collection). Other documents cannot be used as vouchers for consumption tax deductions. For the purchase of naphtha and fuel oil for use in the production of ethylene and aromatic chemical products, the consumption tax refund shall be calculated based on the quantities of naphtha and fuel oil indicated on the special invoices for refined oil obtained; other invoices or documents cannot be used as basis for calculating the consumption tax refund.