China Photovoltaic Products and Related Projects
Export Tax Rebate Policy Adjustment – Explanatory Note

In accordance with the announcement released by China’s fiscal authorities in January 2026, the central government will adjust the value-added tax (VAT) export tax rebate policy for certain photovoltaic (PV) products and related projects. Key details are set out below.

a. Cancellation of export tax rebates for PV products
Effective 1 April 2026, the VAT export tax rebate for selected PV products and related items will be abolished. A definitive product list will be issued separately.

b. Phase-down and eventual elimination of rebates for battery products

c. Excise (consumption-tax) policy unchanged
For items subject to excise tax, the current export-related excise exemption or rebate rules remain in force.

d. Timing rule
The applicable rebate rate is determined by the export date declared on the customs export declaration form.

The adjustment covers, but is not limited to:

The final list will be released by the competent authorities.

From a cost-structure perspective, the removal or reduction of rebates will squeeze already thin margins, accelerating structural capacity realignment. Operations that rely heavily on rebates to stay competitive may need to reassess their business models.

Ahead of implementation, a front-loading of export shipments is likely, creating short-term pressure on international logistics and delivery schedules. Some exporters may have to renegotiate price and delivery terms with overseas customers to reflect the changed cost base.

Over the longer term, the adjustment signals a shift from an export-centric approach toward globalised and localised production footprints. Companies are expected to place greater emphasis on overseas manufacturing, supply-chain collaboration, and compliance capabilities.