IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jul 2017 | Removal date: 31 Mar 2018
Still in force

Import incentive

On December 22nd, 2017, the Chinese State Administration of Taxation reduced the target domestic sales price for imported natural gas. To incentivise gas imports, the Chinese government rebates the VAT on imported natural gas when the import price exceeds the desired domestic price.

Through its decree, the Chinese government altered the sales price of natural gas as follows:

  • July-September 2017:
    • LNG: from USD 4.40 to 4.26 per gigajoule (CNY 28.34 to 27.49)
    • Pipeline: from 0.155 to 0.150 USD per cubic metre (CNY 1.00 to 0.97)
  • From October 2017 onwards:
    • LNG: from USD 4.26 to 4.14 per gigajoule (CNY 27.49 to 26.64)
    • Pipeline: from 0.150 to 0.146 USD per cubic metre (CNY 0.97 to 0.94)

The measure is effective retroactively for the relevant periods. Excess VAT paid on prior imports will be credited accordingly.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

120 Crude petroleum & natural gas
2711 Petroleum gases and other gaseous hydrocarbons.
271111 Natural gas
271121 Natural gas

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