China to End VAT Export Rebates for Solar and Battery Products
China's Ministry of Finance and State Taxation Administration announced the end of VAT export rebates for photovoltaic products starting April 1, 2026, and a phased reduction for battery products. This policy change aims to address overcapacity and deflationary price competition.
Insights:
China's Ministry of Finance and the State Taxation Administration have announced a significant policy shift that will see the elimination of value-added tax (VAT) export rebates for solar photovoltaic products beginning April 1, 2026. Additionally, VAT rebates for battery products will be reduced from 9% to 6% between April and December 2026, with a complete phase-out by January 1, 2027. This move is designed to tackle the dual challenges of overcapacity and deflationary price competition in these critical sectors by removing tax incentives that have been used as hidden discounts in international markets.
