China has cancelled export tax rebates for solar power products and other goods. Buyers are advised to place orders quickly to secure existing stock.

The Ministry of Finance of China issued an announcement on adjustments to the export tax rebate policy for products such as photovoltaic products on Jan. 9. 

Starting from April 1, 2026, the VAT export tax rebate for products such as photovoltaic products will be canceled. From April 1, 2026, to December 31, 2026, the VAT export tax rebate rate for battery products will be reduced from 9% to 6%; starting from January 1, 2027, the VAT export tax rebate for battery products will be canceled.

For overseas purchasers, this move may directly affect international procurement costs. 

What an Export Tax Rebate Is: In simple terms, it’s a refund by the Chinese government of the Value-Added Tax (VAT) already paid by the manufacturer on domestic components, materials, and production processes when the finished product is exported. It’s a common international trade practice to keep a nation’s exports competitive on the global market by making them effectively tax-free in their country of origin.

What Happens When It’s Canceled: Removing this rebate means Chinese exporters can no longer reclaim that VAT. This VAT cost, which was previously neutralized, now becomes an embedded, non-recoverable expense. For example, if the rebate rate drops from 13% to 0%, the exporter suddenly faces a 13% cost increase on the tax component of their product.

In essence, the cancellation acts like a new export tariff, making Chinese goods more expensive to ship overseas.