- Starting 1 April 2026, China will eliminate export VAT refunds for over 200 tariff codes, mainly affecting the photovoltaic industry chain.
- The export VAT refund rate for certain battery products will be reduced from 9% to 6% between 1 April and 31 December 2026, and fully eliminated from 1 January 2027.
- These changes will increase costs and reduce profit margins for affected export enterprises, as exports will be taxed like domestic sales.
- The policy aims to promote industrial upgrading and shift resources toward high value-added sectors, especially in new energy industries.
- Enterprises should assess the impact and take appropriate actions in response to these significant policy changes.
Source: taxathand.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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