The Measures for the Administration of the Collection of Value-Added Taxes of Refined Oil Retail Gas Stations hereby promulgated shall enter into effect as of May 1， 2002.
　　Jin Renqing
　　Commissioner of State Administration of Taxation
　　April 2， 2002
　　Measures for the Administration of the Collection of Value-Added Taxes of Refined Oil Retail Gas Stations
　　Article 1 In order to improve the administration of the collection of value-added taxes （"VAT"） of refined oil retail gas stations and to plug loopholes in tax administration， these Measures are formulated in accordance with the Law of People's Republic of China on the Administration of Tax Collection， the Provisional Regulations of the People's Republic of China Concerning Value-Added Tax and other taxation policies and regulations.
　　Article 2 These Measures shall apply to individual or institutional businesses with fixed operating facilities， duly registered with the industry and commerce administration authority and the tax authority， which are approved by the State Economic and Trade Commission to engage in the refined oil retail business through automatic gas supply equipment （hereinafter referred to as the "Gas Station"）。
　　Article 3 The Gas Station as referred to under Article 1 hereof shall be identified without exception as the standard VAT taxpayer pursuant to the Circular of State Administration of Taxation Requiring Gas Stations to be Treated As General VAT Taxpayers （Guoshui Han [2001] No. 822） and shall be subject to the tax collection administration in accordance with the Provisional Regulations of the People's Republic of China Concerning Value-added Tax.
　　Article 4 If the Gas Station without independent accounting status that is operating under the central distribution arrangement is located in the same county or city as its head office， the head office shall pay the VAT on consolidation basis. Where the branch and the head office are located in different counties or cities within the same province， the provincial tax authority shall determine whether the VAT shall be paid on consolidation basis. State Administration of Taxation shall make such determination if the branch and the head office are located across different provinces.
　　In case that any cross-county or cross-city transfer of refined oil is carried out by a refined oil retail business with the unified accounting system and the consolidated VAT taxpayer status as approved by the relevant tax authority， no VAT shall be levied on such transfer.
　　Article 5 All refined oil sales amount of a gas station shall be subject to VAT despite its settlement means （for example， cash， check， bill of exchange， gas coupon （or register）， gas supply card）。 In respect to the refined oil distributed by a gas station， separate accounts must be kept according to the types of the refined oil， and the taxable sales amount shall be accurately calculated. No gas station may issue a VAT special invoice to the customer purchasing refined oil with the gas coupon or gas supply card.
　　Article 6 The taxable sales amount of a gas station shall include the taxable sales amount of the refined oil of the current month and that of the other taxable sales of goods and labor. The taxable sales amount of the refined oil shall be calculated pursuant to the following formula：The Taxable Sales Amount of the Refined Oil = （The Monthly Total Sale Volume of the Refined Oil - the Volume of Refined Oil Deductible） X Unit Price of the Refined Oil.
　　Article 7 All gas stations must establish a recording system as required by the Gas Station Daily Refined Oil Sales Bench Sheet （Appendix 1， hereinafter referred to as the "Bench Sheet"）。 Gas stations shall， in accordance with the daily bench sheet， by day or by shift prepare the complete and detailed records for the refined oil sales per day or per shift as well as the Consolidated Table for Gas Station Monthly Refined Oil Sales （Appendix 2）。 The Bench Sheet shall be bound up in a volume on a monthly basis and reserved for a certain period of time in accordance with the requirement for reservation of original accounting records and books for the audit and inspection by the competent tax authority.
　　Article 8 Gas stations shall submit to the competent tax authority the following materials in addition to the declaration material as required under the measures for filing tax returns by standard VAT taxpayers：
　　1. Gas Station Reined Oil Sales Detail in the Month of （Appendix 3） or the Refined Oil Sales IC Card；
　　2. Consolidated Table for Gas Station Monthly Refined Oil Sales；
　　3. Detailed Purchase， Sales and Inventory of Refined Oil （Appendix 4）
　　Article 9 If the refined oil supplied by a gas station through its gas supply equipment fits into any of the following cases， such supply is deductible from the monthly refined oil sales volume：
　　1. Self-use refined oil for the vehicles owned by the gas station as confirmed by the competent tax authority；
　　2. Refined oil purchased by another entity， which is stored at the gas station's refined oil storage facility；
　　If the gas station is engaged in the business mentioned in 2 hereof， it must put on file with the competent tax authority the storage agreement and the copies of the refined oil purchase invoice of the consignor.
　　3. Warehousing turnover refined oil；
　　The gas station shall report any warehousing turnover business handled to the competent tax authority in advance and the tax authority shall designate its personnel for on-site inspection and supervision.
　　4. Gas station's refined oil used for test purposes （i.e. the can-returning refined oil）。
　　The gas station shall report to the competent tax authority of the volume of such deductible refined oil at the end of each month in accordance with the Consolidated Table for Gas Station Monthly Refined Oil Sales.
　　Article 10 The local tax authority supervising manufacturers or wholesalers of refined oil shall， on a monthly basis， provide the local tax authority administering refined oil purchasing enterprises with information concerning the refined oil sales by such manufacturers or wholesalers through the Golden Tax Project network （a national taxation computer network）。
　　Article 11 If the gas station fails to maintain proper accounting practice but has installed tax-control gas supply equipment， the VAT shall be collected according to the taxable sales amount calculated based on the data recorded by such tax-control gas supply equipment. The competent tax authority shall require the gas station that fails to fully install the tax-control gas supply equipment （including failure to install） or whose tax-control gas supply equipment does not function properly， to strictly implement the Bench Sheet system and to file the Refined Oil Purchase， Sales and Inventory Detail on a monthly basis. The competent tax authority shall make an inventory of the refined oil of such gas station on a monthly basis， and perform a check and inspection periodically to the gas station jointly with other relevant enforcement agencies.
　　The competent tax authority shall include all the gas stations without proper accounting practice in those subject to the VAT payment *uation. Based on the refined oil purchase information from enterprises as well as the level of tax burden of the local enterprises in the same industry and other information obtained through the Golden Tax Project network， the competent tax authority shall conduct a VAT payment *uation on such gas stations in accordance with Circular of State Administration of Taxation Concerning Strengthening the VAT Payment Evaluation of the Commercial and Trading Enterprises （Guoshuifa [2001] No. 140）。 The case of any discrepancy identified must be transferred to the inspection department and a tax inspection shall be immediately initiated.
　　The competent tax authority may appraise and fix the VAT of the gas station without proper accounting practice according to the information available about the actual operating performance of it.
　　The tax authority shall provide the gas station without proper accounting practice with the special invoices subject to the limitation in value and in volume as stipulated under the special invoice administrative regulations as well as based on the actual operating performance of such gas station.
　　Article 12 The taxpayer that sells refined oil through issuing gas supply cards and gas coupons （hereinafter referred to as the "Preselling Entity"） shall properly record such payment as advance payment in its bookkeeping practice and such advance payment is not subject to the VAT.
　　The preselling entity may issue a general invoice to the customer of the gas supply card or gas coupon. If the customer requests for the VAT special invoice to be issued， the VAT special invoice may be issued to the customer based on the actual refined oil consumption by the customer as reflected by such gas supply card or gas coupon. The entity that sells refined oil through acceptance of the gas supply card or gas coupon shall issue a VAT special invoice to the preselling entity based on the actual payment settled between such entity and the preselling entity.
　　Article 13 The competent tax authority shall collect the refined oil sales data through the inspection card from gas stations within its jurisdiction once in a quarter and shall verify the data collected against the VAT Returns， the Gas Station Daily Refined Oil Sales Bench Sheet， the Consolidated Table for Gas Station Monthly Refined Oil Sales and other materials. The tax authority shall also conduct a comprehensive tax inspection over the determination of the volume deductible， the purchase， sales and storage of the refined oil and other matters.
　　Article 14 These Measures shall enter into effect as of May 1， 2002.
　　Appendix 1 - Gas Station Daily Refined Oil Sales Bench Sheet
　　Appendix 2 - Consolidated Table for Gas Station Monthly Refined Oil Sales
　　Appendix 3 - Gas Station Refined Oil Sales Detail in the Month of
　　 Appendix 4 - Detailed Purchase， Sales and Inventory of Refined Oil