The China State Council adopted a new VAT Implementing Regulation on 19 December 2025, which came into force on 1 January 2026. The regulation, comprising 54 articles across six chapters, provides detailed enforcement procedures and clarifications on taxable goods, services, intangible assets, taxable persons, VAT rates, zero‑rated and exempt supplies, tax calculation, and cross‑border collection responsibilities, complementing the updated VAT law enacted in December 2024.
The State Council adopted the regulation on 19 December 2025.
The Regulation came into force on 1 January 2026.
It clarifies who is considered a taxable person under the VAT Law.
The Regulation contains 54 articles across six chapters.
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FinancialContent · about 8 hours ago
China’s Ministry of Finance and State Taxation Administration announced a phased rollback of the 13% export VAT rebate for lithium‑ion batteries, cutting it to 6% on April 1 2026 and abolishing it by January 1 2027. The move has spurred a sharp rise in lithium prices and a front‑loading of exports, reshaping the global battery supply chain and leveling the playing field for non‑Chinese manufacturers.
AAStocks · about 15 hours ago
China’s Ministry of Finance and State Administration of Taxation announced that the VAT export tax rebate for photovoltaic (PV) and other products will be cancelled from April 2024. The rebate for battery products will be reduced from 9% to 6% from April 2024 until the end of 2026, after which it will be fully cancelled in 2025. The move aims to rationalise overseas prices, reduce trade friction and ease the national financial burden.
VatCalc · about 19 hours ago
China will abolish VAT export rebates for photovoltaic products from 1 April 2026 and phase out battery rebates by 1 January 2027. The policy aims to curb aggressive price discounting and reduce trade friction risks. Consumption tax rebates for these products will remain unchanged.
2FIRSTS · 3 days ago
China’s Ministry of Finance and State Taxation Administration announced that from 1 April 2026, VAT export rebates for e‑cigarette products will be cancelled. The change also reduces battery product rebate rates and eventually cancels them, requiring exporters to adjust customs declarations accordingly.
Ess News · 3 days ago
China will eliminate VAT export rebates for photovoltaic products from April 1, 2026, and will reduce battery export rebates from 9% to 6% between April 1 and December 31, 2026, before fully phasing them out on January 1, 2027. The policy covers a wide range of solar and battery products, including monocrystalline silicon wafers, lithium‑ion batteries, and all‑vanadium redox flow batteries. This marks a significant shift in China’s export incentive regime, potentially increasing export costs for manufacturers.
KPMG China · 6 days ago
KPMG China outlines the key provisions of the newly issued Implementation Regulations of China’s Value‑Added Tax Law, which came into force on 1 January 2026. The regulations refine definitions of taxable transactions, clarify zero‑rate eligibility for cross‑border services and intangible assets, and provide detailed guidance on VAT deduction and exemption criteria. Taxpayers should review the new rules to ensure compliance and optimize VAT management.
