With the release of Announcement No. 2 of 2026 by China’s Ministry of Finance and State Taxation Administration, the export tax rebate policy for photovoltaic (PV) and battery products has undergone significant adjustments. This change will directly affect the cost structure, pricing logic, and supply chain planning of global purchasers. This article will provide you with a comprehensive interpretation of the policy details and practical impacts. The original text of the announcement can be viewed through the following official links:

1. Original text on the official website of the State Taxation Administration: https://fgk.chinatax.gov.cn/zcfgk/c102416/c5246745/content.html
2. Reposted by Beijing Taxation Bureau (for quick access): http://beijing.chinatax.gov.cn/bjswj/sszc/zxwj/202601/2d63fc1987b94ef2804de9b4cffc6b68.shtml

I. Overview of Core Policy Adjustments

1. PV Products: Full Cancellation of Export Tax Rebate

• Effective Date: Starting from April 1, 2026
• Policy Change: The original 9% VAT export tax rebate will be fully canceled, covering the entire industrial chain of PV products such as silicon wafers, cells, modules, and inverters.
• Judgment Standard: Based on the export date indicated on the customs declaration form for exported goods; the time of contract signing or payment does not affect the application of the tax rate.

2. Battery Products: Phased Reduction Until Cancellation

• Transition Period (April 1, 2026 – December 31, 2026): The VAT export tax rebate rate for battery products will be reduced from 9% to 6%, and the procurement cost will directly increase by approximately 3%.
• Final Phase (Starting from January 1, 2027): The export tax rebate for battery products will be fully canceled, and the cost will further increase to 9%.
• Scope of Application: Covers various types of battery products such as energy storage batteries and power batteries (see the official attachment list for details).

3. Consumption Tax Policy: Remains Unchanged

For PV/battery products subject to consumption tax, the export consumption tax rebate (exemption) policy will continue to be implemented and will not be affected by this adjustment.

II. Direct Impacts on Your Procurement Business in China

1. Cost and Pricing: Inevitable Price Increase

• PV Products: Starting from April 1, 2026, the export cost of Chinese suppliers will directly increase by approximately 9%, and this part of the cost will most likely be passed on to the procurement side.
• Battery Products: The cost will increase moderately by 3% in 2026, and starting from 2027, it will face a 9% cost increase in line with PV products.
• Reminder: For signed but unexecuted contracts, the price needs to be recalculated, and quotes for new orders will fully reflect the policy changes.

2. Delivery Time and Stock Preparation: Seize the Window Period

• Before Policy Implementation: If you wish to enjoy the original tax rebate policy, you must ensure that the goods are declared and exported before March 31, 2026. In the near future, there may be logistics congestion and delivery delays caused by concentrated shipments; it is recommended to lock in production and shipping space in advance.
• Medium and Long-Term Planning: After April 2026, it is necessary to include the tax rebate cost in the long-term procurement budget and evaluate whether to adjust the procurement rhythm or seek diversified supply chain solutions.

3. Supply Chain Selection: Forcing Layout Optimization

In the short term, China remains the core supply base for global PV and battery production capacity, and price increases will become an industry consensus.

In the long term, enterprises may consider:

• Negotiating long-term cooperation prices with Chinese suppliers to hedge against cost fluctuations;
• Exploring overseas production capacity layouts in Southeast Asia, the Middle East, etc., to reduce policy risks;
• Optimizing inventory management and balancing costs and delivery efficiency through overseas warehouse stock preparation.

III. Suggestions for Purchasers to Respond

1. Urgent Actions: Sort Out In-Transit and Pending Production Orders

• Immediately confirm the order production progress and customs declaration plan with the supplier to determine whether export can be completed before March 31, 2026.
• For orders that cannot be shipped before the policy takes effect, initiate a new quote calculation and clarify the cost sharing method.

2. Medium and Long-Term Strategies: Reconstruct Cost and Supply Chain Models

• Incorporate the tax rebate cost into the product BOM (Bill of Materials), and recalculate the project IRR (Internal Rate of Return) and quotation competitiveness.
• Work with suppliers and logistics providers to explore optimization solutions, such as split customs declaration and adjustment of trade terms (FOB/CIF), to minimize additional costs.

3. Compliance Guarantee: Ensure Accuracy of Customs Declaration and Documents

• Strictly check the export date on the customs declaration form to avoid failure to enjoy the original tax rebate or additional taxes due to declaration errors.
• Retain official policy documents and product lists for future audits or dispute resolution.

IV. Conclusion

China’s new PV and battery export tax rebate policy is an important measure to promote the high-quality development of the industry, and it also brings short-term challenges and long-term opportunities for global procurement business. Through advance planning, accurate calculation and flexible response, you can not only effectively hedge the risk of cost increases, but also optimize the supply chain layout and enhance long-term competitiveness in the industry transformation.

We will continue to pay attention to policy dynamics and provide you with the latest interpretations and practical suggestions. If you have any questions, please feel free to communicate and discuss.

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