China to progressively eliminate export VAT rebates on photovoltaic products and batteries from 2026
The Ministry of Finance of China, together with the State Taxation Administration, has announced a change in the export VAT rebate policy that will directly affect photovoltaic products and batteries, with a gradual implementation starting in 2026.
Until now, Chinese manufacturers paid VAT at origin when producing and exporting these products, but later received a partial or full refund of that tax from the Chinese state as an export incentive.
Under the new regulation, this VAT will no longer be refunded, which means that the tax cost will be directly integrated into the price of the exported product.
This change represents a significant adjustment to the fiscal framework for Chinese solar exports and has a direct impact on manufacturers’ cost structures.
End of export VAT rebates for photovoltaic products from April 2026
According to the official announcement, as of April 1, 2026, the export VAT rebate for photovoltaic products and other related items will be fully cancelled, as listed in the documentation published by the Chinese authorities.
In practice, this means that the VAT previously refunded to Chinese manufacturers will no longer be recoverable, and therefore export prices for photovoltaic modules, components, and equipment will incorporate this higher tax cost.
Reduction of export VAT rebates on batteries until full elimination in 2027
In the case of energy storage products (batteries), the adjustment will be applied gradually:
- From April 1, 2026 to December 31, 2026, the export VAT rebate rate will be reduced from 9% to 6%, already representing a partial loss of the tax incentive.
- As of January 1, 2027, the export VAT rebate for battery products will be completely eliminated, fully integrating the tax into the final cost of the exported product.
This schedule establishes a limited transition period, particularly relevant for commercial operations and shipments planned in advance.
The export date will be decisive in applying the new regime
The Chinese authorities have confirmed that the applicable export VAT rebate rate will be determined based on the export date stated in the customs declaration, not on the contract date, manufacturing date, or order date. This is a key factor for ongoing operations or shipments scheduled during the transition period.
Publication of official lists of affected products
The official announcement by the Ministry of Finance of China and the State Taxation Administration is accompanied by technical annexes detailing the product categories and customs codes affected by the adjustment to the export VAT rebate policy.
- List of photovoltaic and related products
- List of battery products
These annexes form part of the full document published by the Chinese authorities and constitute the official reference for applying the new tax regime, based on the customs code and the declared export date.
Implications for the international market
The elimination of the VAT rebate means that the tax previously borne by the Chinese state becomes part of the product cost.
As a result, export prices for photovoltaic products and batteries are expected to increase, directly affecting international distributors and importers, who will see this higher cost reflected in their purchasing conditions.
Ultimately, this fiscal adjustment reduces export incentives from China and reinforces the importance of accurate commercial, logistical, and financial planning across the international photovoltaic supply chain.
Monitoring by Vico Export Solar Energy
At Vico Export Solar Energy, we closely monitor regulatory changes of this kind that affect international trade in photovoltaic equipment, with the aim of anticipating their impact and providing our clients with clear, up-to-date, and practical information to support decision-making.
*Source: Ministry of Finance of the People’s Republic of China