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  • Refinery exchange and borrow and loan transactions

    What are refinery exchange transactions?

    This is a reciprocal arrangement between oil companies where companies make product available to one another on the understanding that it will be replaced by like product.

    What are borrow and loan transactions?

    This is where a company with bulk handling and storage facilities at a particular location enters into an arrangement to store, for subsequent withdrawal, another company's product.

    Taxable supplies

    For both refinery exchange transactions and borrow and loan transactions, the supply of product will be taxable.

    Valuation of taxable supplies

    With the agreement of industry, the method of calculating the value (GST exclusive) will be based on an international valuation used in the oil industry called 'Mean of Platts Singapore' or 'MOPS'.

    Tax invoices

    Each oil company making a supply to another oil company (whether refinery exchange or borrow and loan) will issue the recipient company a tax invoice showing the total product supplied, valued at 'MOPS', and the GST amount. This tax invoice would be a summary of all the taxable supplies made by one company to another company during the month.

      Last modified: 01 Sep 2015QC 16450