Published on: 2026-10-13
Source: People’s Republic of China — Translation
An important disclaimer is at the bottom of this article.
Beijing, October 12 /Xinhua/ — From April 1, 2027, China will reduce the value-added tax (VAT) refund rate for the export of new energy vehicles (NEV) from 13 percent to 9 percent. This was announced by the country’s authorities.
As noted in a statement jointly issued by the Ministry of Finance and the State Taxation Administration of China, from the same date, VAT refunds on exports of electronic cigarettes and related goods will be canceled.
The document clearly states that regarding the part of the above-listed products subject to excise tax, the excise tax policy on exports will not be adjusted and the policy of refund or exemption from excise tax will continue to apply.
The corresponding adjustment was made against the backdrop of China continuing to optimize its export tax rebate policy.
From April 1, 2026, the country abolished the VAT refund on the export of photovoltaic products, while simultaneously reducing the refund rate for battery products from 9 percent to 6 percent starting on the same date. From January 1, 2027, the refund for battery products will be completely canceled.
China is the world’s largest NEV market — a category that includes fully electric vehicles and plug-in hybrids. In recent years, this sector has been rapidly developing, and Chinese automakers are increasingly looking for growth opportunities in overseas markets.
According to the latest data, in September China exported 1.053 million motor vehicles, which is 61.4% more compared to the same period last year, including 571 thousand NEV vehicles — more than twice as many as a year earlier. The share of NEVs exceeded half of the total motor vehicle export volume for the fourth consecutive month.
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