China's Notice on Import-VAT Refund for Natural Gas Imports

To provincial departments of finance and of taxation, Guangdong Sub-Administration of China Customs, and local customs directly under the General Administration of Customs:

With approval by the State Council, the import value-added tax (VAT) may be refunded proportionally regarding the imports of natural gas (including liquefied natural gas).

Relevant matters are hereby announced below:

1. From January 1, 2011 to December 31, 2020, where import price of the natural gas imported under any State-permitted projects is higher than State-fixed sale price of natural gas, the import VAT on such permitted natural gas (including the liquefied) may be refunded as per an inverse proportion between the import price and the State-fixed sale price.

2. Regarding the natural gas imported by the end of 2010 under the "Central Asia-China Natural Gas Pipeline" project, the import VAT thereof may also be refunded in the aforesaid manner.

3. Specific rules on the refund may be subject to the Provisional Regulations on the Refund of Import Value-Added Tax on Natural Gas (see Annex).

Annex: Provisional Regulations on the Refund of Import Value-Added Tax on Natural Gas (omitted)