Important Notice: Changes to China VAT Export Rebates for Photovoltaic and Battery Products
China’s State Taxation have announced major changes to VAT export rebate policies for certain photovoltaic and battery-related products. These changes will directly affect export costs and pricing.
What is changing?
-
Photovoltaic and related products
- From 1 April 2026
- VAT export rebate will be fully cancelled
- Rebate rate becomes 0%
This change covers a wide range of photovoltaic-related products, including not only solar cells and modules, but also many upstream materials and components used in PV manufacturing, such as silicon-based materials, conductive and specialty glass, and other related industrial products commonly used in the new energy supply chain.
-
Battery products
- From 1 April 2026 to 31 December 2026
- VAT export rebate reduced from 9% to 6%
- From 1 January 2027
- VAT export rebate fully cancelled (0%)
This applies to a wide range of battery products, including lithium-ion batteries, other rechargeable batteries, primary batteries, and certain battery parts.
List of products affected by the VAT export rebate changes
Please note: The official scope is broad and technical. If a product is used in photovoltaic or battery manufacturing, exporters should assume it may be affected and verify its treatment before shipment.
| Area affected | Examples of products covered | What this means |
|---|---|---|
| Photovoltaic manufacturing chain | Solar cells and modules; materials used to produce solar products such as silicon-based inputs, specialty and conductive glass, and related industrial components | VAT export rebate fully cancelled from 1 April 2026 |
| New energy and energy storage materials | Materials commonly used in battery and energy storage manufacturing, including chemical inputs and functional materials | VAT export rebate fully cancelled from 1 April 2026 |
| Battery products | Lithium-ion batteries, NiMH batteries, primary batteries (alkaline, lithium, zinc-air, etc.), flow batteries | Rebate reduced to 6% in 2026, cancelled from 1 January 2027 |
| Battery components | Parts and components used in battery production | Rebate reduced to 6% in 2026, cancelled from 1 January 2027 |
| Other regulated industrial products linked to PV | Certain glass, ceramics, carbon-based materials, and industrial goods closely connected to PV production | VAT export rebate fully cancelled from 1 April 2026 |
Table: List of product affected by VAT tax rebate updates.
What this means in practice
- Export costs for affected products will increase.
- Export pricing, margins, and contracts may need to be reviewed or adjusted.
- Shipment timing before 1 April 2026 and 31 December 2026 is critical for cost planning.
- The export date shown on the customs declaration determines which rebate rate applies.
- Contract date, invoice date, or payment date do not determine eligibility.
- If any of the affected products are subject to consumption tax, the export consumption tax refund or exemption policy remains unchanged.
China offers strong infrastructure, skilled labor, and supply-chain depth, but setting up a factory requires planning, compliance, and local insight.
If you’re ready to expand production, start with a consultation to review your goals, budget, and location options.
A local expert can help you choose the right structure and guide you through registration smoothly.
