Taxes on the import and export of oil and gas, Practical Law UK Articles 1-524-3130

Taxes on the import and export of oil and gas

by Practical Law

Articles | Published on 01-Sep-2019 | Argentina, Australia, Brazil, Canada, Chile, China, Ecuador, Finland, France, Germany, India, Indonesia,
Japan, Lebanon, Mexico, Oman, Portugal, Romania, Russian Federation, Singapore, South Africa, Spain, Turkey, United Kingdom, United
States

This table summarises the taxes and duties that apply on the import and export of oil and gas. Please note that law
stated dates for each jurisdiction may differ. Click on each jurisdiction to see the full answers and to check the law
stated date.

This table is part of the global guide to energy and natural resources. For a full list of content visit
www.practicallaw.com/energy-guide.

Jurisdiction What taxes and duties apply on the import and export of oil and gas?
Australia • Customs duty of between zero and 5% are payable depending on the
classification of goods.

• Goods and services tax is payable at a flat rate of 10%, unless there is
a duty concession or exemption.

• Imported fuel and petroleum products are subject to excise equivalent

goods (EEGs) duties, which is an equivalent measure to the
manufacturing/production excise.

Argentina Import. Many products are exempted. Products that are not exempted are
subject to import duties ranging from 5% to 14%.

Export. Exports are taxed at a 0% rate, which means that exporters can be
reimbursed any tax they have paid at the commercial or industrial stages
before exportation.

Under an extraordinary and temporary decision, there is an export duty of

8% on the export of all merchandise included in the Common Nomenclature
tariff positions of MERCOSUR (including oil and gas). For merchandise
included in the MERCOSUR common nomenclature tariff positions set out
in Annex I to the Decree 793/2018 the limit is USD3 per US dollar of the
taxable value or the official FOB price (as applicable).
Brazil • Import duty tax. This is a federal tax and the rate varies in accordance
with the customs table published in Decree No. 9,020/2017.

• Tax on goods, transportation services and communication

services. This is a state tax and the rate varies in each state.

• Contributions to the social integration programme. This is a federal

contribution with a rate that varies according to the particular taxable
item.

• Contributions for social security financing. This is a federal

contribution with a rate that varies according to the particular taxable
item.

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Taxes on the import and export of oil and gas, Practical Law UK Articles 1-524-3130

• Contribution of intervention in the economic domain. This is

regulated by Law 10,336/01 and is levied on the import of oil and
its by-products, natural gas and its by-products, and ethyl alcohol
fuel. However, the rates for most by-products and ethyl alcohol fuel
are zero, with the exception of gasoline and diesel, which have their
aliquots set at BRL100 and BRL50 per cubic metre, respectively.

Canada • Federal: 5% goods and services tax.

• Provincial: 5% to 15% goods and services tax/harmonised sales tax.

Chile • Exports: All hydrocarbon exports carried out by a CEOP contractor are
exempt from any tax or assessment.

• Imports: Automotive gas and diesel oil are subject to a specific tax,
which is accrued on the first sale or importation of such products. This
specific tax must be borne by the producer or importer, as applicable.

China • VAT at the rate of 13% for crude and processed oil, and 9% for natural
gas.

• Consumption tax and custom duty on the import of processed oil.

The rates vary for the different kinds of processed oils. Crude oil and
natural gas are exempt.

• Income tax at the rate of 25% on the export of oil and gas, and 10%
withholding income tax on their import.

Those taxes and rates are subject to bilateral tax treaties.

Ecuador • There are no taxes applicable to the export of oil.

• There are no taxes or custom duties on the import of oil derivatives or

gas.

• VAT of 12% is applied to the sale of refined products (including gas) for
industrial purposes.

Finland The taxes and duties on the import and/or export of oil and gas include:

• Customs duties on imports from non-EU countries.

• VAT of 24% (natural gas and crude oil are exempt (crude oil, however,
under special circumstances)).

• Excise duties.

• Stockpile fees.

• Oil pollution fee of 50 cents per full tonne levied on import or transport
through Finland.

France • VAT (if imported from an EU member states).

• Customs duty (common external tariff) (Tarif extérieur commun).

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Taxes on the import and export of oil and gas, Practical Law UK Articles 1-524-3130

• Fee collected by customs by operators of the Professional Committee

of Strategic Deployment Stocks (Comité professionnel des stocks
stratégiques pétroliers) (CPSSP).

• Excise duties (indirect tax due on the consumption of certain products,

and payable on delivery or at the time of customs formalities), that is:

• internal consumption tax on energy products (Taxe Intérieure de

Consommation sur les Produits énergétiques) (TICPE);

• special consumption tax which is the TICPE equivalent for

overseas territories; and

• internal consumption tax on natural gas (Taxe Intérieure de

Consommation sur le Gaz Naturel) (TICGN), which is the TICPE
equivalent for natural gas.

Germany • VAT. Deliveries to non-EU third countries are exempt from VAT.

• Special excise energy tax (Energiesteuer).

India • INR50 per metric tonne for national calamity contingent duty on crude
oil imports.

• 2.5% basic customs duty on import of LNG.

• 5% basic customs duty on import of natural gas in a gaseous state.

• 5% basic customs duty and 14% additional customs duty on import of

natural gas (compressed).

India does not export crude oil and LNG.

Indonesia • Import duty, at the rate of 0% to 5%, depending on the type of oil and
gas.

• Income tax, at the rate of 2.5% or 7.5% (PPh 22) (for fuel imports).

• Import VAT, at the rate of 10% (for fuel imports).

Japan Petroleum and coal tax is imposed at:

• JPY2,800 per KL for crude oil.

• JPY1,860 per MT for natural gas.

Japan does not export oil and gas.

Lebanon Under the Taxation Law No 57/2017 related to petroleum activities (Tax
Provisions related to petroleum activities in accordance to Law 132 dated 24
August 2010), the following taxes apply:

• Income tax: 20%.

• VAT: 11%.

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Taxes on the import and export of oil and gas, Practical Law UK Articles 1-524-3130

• Withholding tax on interests are taxed at a rate of 10% over their full
value.

• Withholding tax rate on providing services performed inside or outside

Lebanon are taxed based on 50% profit and 20% tax.

• Withholding tax rate on buying material that will be installed inside

Lebanon: installation costs are taxed on 15% profit and 20% (if
separate).

• Built property tax. Constructions, installations and fixations used to

carry out Petroleum Activities in the maritime Waters, in accordance
with the definition of these Waters in Law No 132 dated 24/08/2010
(Offshore Petroleum Resources Law), are exempted from the built
property tax.

• Stamp duty: fixed at LBP5 million for each copy.

Mexico Ad valorem import duties:

• Crude oils obtained from bituminous materials: 7%.

• Non-crude petroleum oils or bituminous minerals; preparations not

specified or included elsewhere that contain petroleum oils, or where
at least 70% by weight bituminous minerals in these oils form the base
element; and oil waste: between 5% and 7%.

• Petroleum gas and other gaseous hydrocarbons: 7%.

There are no applicable export duties.

Oman • 5% duty on the import of crude oil, gas and other petroleum products.

• No duties or taxes on export.

Portugal Imports of oil and gas are subject to:

• Tax on oil and energy products (ISP), at various rates depending on

the product.

• VAT at 23%.

• Customs duties, depending on the product and its origin, but not on
natural gas and crude oil.

• Excise duties.

Romania • VAT applies at the rate of 19%.

Russian Federation Export duty is payable on the following

• Oil: whether export duty is payable and its amount (if payable)
depends on the price for oil per tonne (for details, see Question 13).

• Piped gas: 30% of its customs value.

• LNG: none.

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Taxes on the import and export of oil and gas, Practical Law UK Articles 1-524-3130

Singapore • Certain customs and/or excise duties are imposed on certain

petroleum products (such as petrol and natural gas that is used as
fuel).

• The main tax applicable on the import and export of oil and gas is the
goods and services tax, levied at a rate of 7% under the Goods and
Services Tax Act (Cap. 117A).

South Africa Customs duties are payable on imported goods at varying rates.

Value added tax (VAT) is payable on the import of goods and certain
services into South Africa.

As a general rule, VAT is imposed at a rate of 15% on the supply of goods

and/or provision of services by a registered VAT vendor, and on goods and
certain services imported into South Africa. There are certain exemptions
from VAT. Some supplies (such as goods and services exported from South
Africa) are subject to VAT at 0% (referred to as zero-rated supplies).
Spain On the import of oil and gas:

• VAT applies at the rate of 21% except when oil and gas are placed in a
tax warehouse.

• Hydrocarbons tax (impuesto sobre hidrocarburos) applies except when

oil and gas are destined to industrial consumption or placed in a tax
warehouse.

• Custom duties apply to the importation of oil and gas from countries
outside the EU (the applicable tariff depends on the type of petroleum
products that are imported).

On the export of oil and gas:

• VAT does not apply to exportation (in the EU, the acquirer must carry
out an economic or professional activity).

• Hydrocarbons tax does not apply to exportation.

• Custom duties do not apply.

Turkey • Income tax.

• Corporate tax.

• Withholding tax.

• Value added tax.

• Private consumption tax.

• Customs duty.

UK (England & Wales) Imports:

• VAT payable at 20% except for natural gas.

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Taxes on the import and export of oil and gas, Practical Law UK Articles 1-524-3130

• Customs duties not currently payable on oil or gas.

• Excise duty payable on oil and oil products, and LPG used as a road
fuel.

• Climate change levy on natural gas supplied by a gas utility, petroleum

and hydrocarbon gas in a liquid state (including LPG).

Exports: dependent on destination.

United States • Excise taxes vary depending on the product, ranging from USD0.184
per gallon for gasoline to USD0.244 per gallon for diesel and kerosene.

• Excise taxes vary depending on the product, ranging from USD0.184

per gallon for gasoline to USD0.244 per gallon for diesel and kerosene.

• 2009 to 2016: USD0.08 per barrel; and

• 2017: USD0.09 per barrel.

• Tariffs on oil imports range from USD0.0525 to USD0.525 per barrel

depending on the type of petroleum.

• LNG is generally duty-free.

• No duties applied to goods exported from the US.

END OF DOCUMENT

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