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Treasury Administration of Taxation on VAT policy of large hydropower enterprises

Notice on VAT policy of large-scale hydropower enterprises 
No.10 [2014] of the Ministry of Finance

Notice of the Ministry of Finance and the State Administration of Taxation on the Value-Added Tax Policies for Large Hydropower Enterprises

(No. 10 [2014] of the Ministry of Finance)            

The public finance departments (bureaus) and state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning; and the Financial Bureau of Xinjiang Production and Construction Corps:                      

For the purpose of supporting the development of hydropower industry, unifying and standardizing VAT policies for large-size hydropower enterprises, upon approval by the State Council, the preferential VAT policies for large-size hydropower enterprises are hereby notified as follows:

I. Hydropower plants (including pumped storage power stations) with the installed capacity of more than 1 million kilowatts which sell electrical products produced by themselves may be entitled to an immediate VAT refund upon collection on the portion actually paid exceeding 8% of the total VAT payable from January 1, 2013 to December 31, 2015, and to an immediate VAT refund upon collection on the portion actually paid exceeding 12% of the total VAT payable from January 1, 2016 to December 31, 2017.

II.  The term “installed capacity” as mentioned in this notice refers to the sum of rated installed capacities of the generator sets of a single station. The rated installed capacity includes the total installed capacity of a hydroelectric power station verified (examined and approved) by the project verification (examination & approval) authority within its limitation of power, and the follow-up installed capacity increased upon approval resulted from technological upgrading and other reasons.

III. The “Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning VAT Policies for Power Products of Three Gorges Power Station” ( Cai Shui[2002] No.24), the “Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning VAT Policies for Power Products of Gezhouba Power Plant” (Cai Shui [2002] No.168), the “Notice of the Ministry of Finance on Issues Concerning VAT Policies for Power Products of Xiaolangdi Water Conservancy” (Cai Shui [2006] No.2), the “Notice of the State Administration of Taxation on Issues Concerning VAT Policies for Power Products of Huanghe Hydropower Development Co., Ltd.” (Guo Shui Han [2004] No.52) shall be abolished as of January 1, 2014.

Ministry of Finance, State Administration of Taxation February 12, 2014

财政部 税务总局关于大型水电企业增值税政策的通知

关于大型水电企业增值税政策的通知
财税〔2014〕10号

财政部 国家税务总局各省、自治区、直辖市、计划单列市财政厅（局）、国家税务局，新疆生产建设兵团财务局：
　　为支持水电行业发展，统一和规范大型水电企业增值税政策，经国务院批准，现将大型水电企业增值税优惠政策通知如下：
　　一、装机容量超过100万千瓦的水力发电站（含抽水蓄能电站）销售自产电力产品，自2013年1月1日至2015年12月31日，对其增值税实际税负超过8%的部分实行即征即退政策；自2016年1月1日至2017年12月31日，对其增值税实际税负超过12%的部分实行即征即退政策。
　　二、本通知所称的装机容量，是指单站发电机组额定装机容量的总和。该额定装机容量包括项目核准（审批）机关依权限核准（审批）的水力发电站总装机容量（含分期建设和扩机），以及后续因技术改造升级等原因经批准增加的装机容量。
　　三、《财政部国家税务总局关于三峡电站电力产品增值税税收政策问题的通知》（财税〔2002〕24号）、《财政部 国家税务总局关于葛洲坝电站电力产品增值税政策问题的通知》（财税〔2002〕168号）、《财政部关于小浪底水利工程电力产品增值税政策问题的通知》（财税〔2006〕2号）、《国家税务总局关于黄河上游水电开发有限责任公司电力产品增值税税收政策问题的通知》（国税函〔2004〕52号）自2014年1月1日起废止。
　　　　　　　　　　　　　　　　　　　　　　　　财政部 国家税务总局
　　　　　　　　　　　　　　　　　　　　　　　　　　2014年2月12日