What is the VAT rate for high power wind turbine generators?

The general VAT rate is 20%. For import of the key parts and raw materials used for production of the high power wind turbine generator systems or their components custom legislation of the Eurasian Economic Union stipulates an incentive rate 0%.

How much VAT is paid on the sale of wind power?

VAT • 50 percent refund of VAT is paid on the sale of wind power. • 50 percent refund of VAT is paid on the sale of self-produced PV power from 1 October 2013 to 31 December 2015. • 100 percent refund of VAT is paid on the sale of biodiesel oil generated by the utilization of abandoned-animal fat and vegetable oil.

When do new energy companies receive VAT incentives?

As shown in Table 1, VAT incentives have two distinct time points in the major sub-sectors of new energy industry: wind power and nuclear power enterprises have been receiving VAT incentives since 2008, while the solar PV and NEV enterprises did not until 2013.

Why did wind power companies receive VAT incentives in China?

This means during 2008–2012, only wind power and nuclear power enterprises in China received VAT incentives, which creates a difference between the favored and non-favored enterprises in the same period, and a difference in the development of the same company in the pre and post-incentivize periods.

Are wind turbines VAT taxable?

Although wind turbines qualify as immovable property by nature for VAT purposes, the passive immovable rent of windmills qualifies as a VAT taxable transaction giving rise to a right to deduct the input VAT.

Are wind power generation companies eligible to avail input tax credit?

Further, since the sale of electricity is exempt from GST, as per the provisions relating to availment of input tax credit, wind power generation companies are not eligible to avail input tax credit of GST paid on procurement of goods and/or services which are required to set up the wind power generation project.