China’s new Value‑Added Tax Law and its Implementing Regulations entered force on 1 January 2026, bringing significant changes to taxable transaction definitions, VAT rates, and taxpayer status thresholds. The law retains the 13 %, 9 %, and 6 % rates, introduces a 3 % levying rate for the simplified tax method, and adjusts the real‑estate VAT rate for individuals to 3 %. Enterprises exceeding RMB 5 million in annual taxable sales must switch to the general taxation method, and the definition of taxable services and intangible assets now focuses on consumption within China or domestic sellers.
Both the law and its Implementing Regulations took effect on 1 January 2026.
The law retains 13 %, 9 %, and 6 % rates, and sets a 3 % levying rate for the simplified tax method.
It was adjusted to 3 % as per Public Notice No. 17 2025.
When annual taxable sales exceed RMB 5 million, enterprises must use the general taxation method.
It now applies when services or intangible assets are consumed within China or when the seller is a domestic entity or individual.
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China Daily · 3 days ago
China will scrap value‑added tax rebates on photovoltaic products from April 2026, ending the export rebate for PV modules. Between April and December 2026, battery product rebates will be cut from 9% to 6%, and the full removal of PV rebates will take effect on 1 January 2027. The policy shift follows a November 2024 reduction of solar wafer, cell and module rebates from 13% to 9%.
FinancialContent · 3 days 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 · 4 days 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.
1stopVAT · 4 days ago
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VatCalc · 4 days 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 · 6 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.
