China is introducing a phased reduction and cancellation of VAT refunds on the export of a wide range of industrial products. The relevant notice was published in early January 2026 by the Ministry of Finance of China and the State Taxation Administration.
The main focus is on photovoltaic products and batteries. The changes will take effect from April 1, 2026, affecting hundreds of tariff lines. VAT refunds on exports of photovoltaic modules and related products (249 items) will be fully abolished. For battery products (22 items), the VAT refund rate will be reduced from 9% to 6% for the period from April 1 to December 31, 2026, and fully eliminated as of January 1, 2027.
Importantly, for products from these lists that are subject to consumption tax, the existing rules on tax refunds or exemptions upon export will remain unchanged. The export date stated in the customs declaration will be decisive for the applicable rates.
These changes coincide with a broader regulatory shift: from April 1, 2026, China will reintroduce a five-tier exporter credit rating system with stricter criteria, as stipulated in Order No. 282 of the General Administration of Customs of China. For exporters and their partners, this means higher compliance requirements and the need for more careful shipment planning.
The main focus is on photovoltaic products and batteries. The changes will take effect from April 1, 2026, affecting hundreds of tariff lines. VAT refunds on exports of photovoltaic modules and related products (249 items) will be fully abolished. For battery products (22 items), the VAT refund rate will be reduced from 9% to 6% for the period from April 1 to December 31, 2026, and fully eliminated as of January 1, 2027.
Importantly, for products from these lists that are subject to consumption tax, the existing rules on tax refunds or exemptions upon export will remain unchanged. The export date stated in the customs declaration will be decisive for the applicable rates.
These changes coincide with a broader regulatory shift: from April 1, 2026, China will reintroduce a five-tier exporter credit rating system with stricter criteria, as stipulated in Order No. 282 of the General Administration of Customs of China. For exporters and their partners, this means higher compliance requirements and the need for more careful shipment planning.
