[Global IDT Insights] China Revises VAT for Wind and Nuclear Power | EU Cuts Ukraine Tariffs

Editorial Team – [2025] 180 taxmann.com 305 (Article)

Global IDT Insights provides a weekly snippet of tax news specifically related to Indirect Taxes from around the globe.

1. China revises VAT framework for wind and nuclear power generation

China has adjusted its Value-Added Tax (VAT) policies applicable to wind and nuclear power generation. The revised provisions specify refund eligibility for offshore wind power projects and update the treatment of nuclear power units based on their approval and operation timelines.

The following refund policy has been specified:

(a) Offshore Wind Power – From 01-11-2025 to 31-12-2027, taxpayers selling self-produced electricity generated using offshore wind power will be eligible for a 50% VAT refund.

(b) Nuclear Power – Units officially in commercial operation before 31-10-2025 will continue to follow the existing VAT provisions.

Units approved by the State Council before 31-10-2025 but not yet operational will apply a VAT levy-upon-refund policy for 10 years from the month following official operation, with a 50% refund of the tax paid.

Units approved after 01-11-2025 will not be eligible for the VAT levy-upon-refund policy.

(c) Regulatory Supremacy and Repeal – In case of any inconsistency, the new provisions will prevail. Previous VAT policies for wind power generation will be abolished effective 01-11-2025.

Source – Official News

2. European Union reduces or eliminates customs duties on selected agri-food products from Ukraine

The European Union (EU) has approved tariff adjustments concerning imports of selected agri-food products from Ukraine. The measure provides for the reduction or elimination of customs duties on specified product categories within the framework of the EU-Ukraine trade arrangement.

The following tariff measures have been outlined:

(a) Scope of Tariff Adjustment – Customs duties will be reduced or eliminated for certain agri-food products, including dairy products, fresh fruit and vegetables, meat, and meat preparations.

(b) Tariff Implementation Framework – Market access for specific sensitive products- such as sugar, poultry, eggs, wheat, maize, and honey- will remain subject to limited or gradual tariff reduction.

(c) Safeguard Provision – A safeguard mechanism has been established, allowing either party to activate tariff-related measures in the event of market disruption.

Source – Official News

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