China to Scrap VAT Export Rebates for Solar Products From April 2026

China will eliminate value-added tax (VAT) export rebates for photovoltaic (PV) products starting April 1, 2026, according to a joint notice issued on Jan. 9 by the Ministry of Finance and the State Taxation Administration.

Under the revised policy, VAT export rebates for solar products will be fully removed from April 1, 2026. Export rebates for battery products will be reduced from 9% to 6% during the period from April 1 to Dec. 31, 2026, before being abolished entirely from Jan. 1, 2027.

Scope of Affected Products

The official product lists show that the solar category includes monocrystalline silicon wafers with diameters exceeding 15.24 cm, covering both thicknesses above and below 220 micrometers, provided they are doped for electronic industry use. Industry sources note that the vast majority of mainstream PV wafers currently produced fall within this definition. The scope also includes unassembled solar cells as well as finished photovoltaic modules.

The battery category extends beyond lithium-ion batteries and battery packs to cover a broader range of energy storage technologies, including all-vanadium redox flow batteries. In addition, key upstream lithium battery materials are included, such as lithium hexafluorophosphate, lithium manganate, lithium cobalt oxide, and lithium nickel cobalt manganese oxides.

Second Adjustment in Over a Year

This marks the second significant revision to China’s export rebate framework for solar and battery products in just over a year. In the previous adjustment, announced on Nov. 15, 2024 and effective from Dec. 1, 2024, export rebate rates for selected refined oil products, solar equipment, batteries, and certain non-metallic mineral products were reduced from 13% to 9%.

Market Impact and Outlook

Market analysts expect the latest policy shift to materially increase export costs for Chinese PV and battery manufacturers. However, with a transition period of nearly three months before the new measures take effect, some anticipate a short-term surge in outbound shipments during the first quarter of 2026, as companies rush to complete exports ahead of the deadline.

Over the longer term, analysts believe the rollback of export tax incentives will support China’s broader industrial policy objectives. These include encouraging industry consolidation, accelerating technological upgrades, and promoting a shift toward higher-value and more sustainable manufacturing, rather than continued reliance on volume-driven export growth.