According to the state administration of taxation on oil consumption tax levy notice on the management of “(the state administration of taxation announced in 2018, no. 1) regulation:” second, outsourcing, import processing and recovery of gasoline, diesel oil, naphtha, fuel oil, lubricating oil used in continuous production of taxable products, should by the VAT invoice confirmation platform of product oil special invoice, custom import special consumption tax payment, and (the) withholding or collecting tax payment book, computed by deducting excise taxes, other certificates shall not be used as tax deduction certificates.
If the purchased naphtha and fuel oil are used for the production of ethylene and aromatic chemical products, the consumption tax shall be calculated and refunded according to the quantity of naphtha and fuel oil specified in the special invoice for refined oil obtained.
So, the simple packaging of lubricants whether to levy excise tax?
Units and individuals purchasing large packages of lubricants after simple processing into small packages or purchased lubricants without processing only affixed trademarks, shall be regarded as taxable consumption tax products production behavior. Units and individuals shall report and pay consumption tax for the above ACTS. If the conditions for deduction are met, the consumption tax already paid for the purchased lubricating oil may be deducted.