China to Withdraw Export VAT Rebates on PV-Related Products from April 1, 2026; Polyether Inputs Also Affected

China’s Ministry of Finance, together with the State Taxation Administration, has released Announcement No. 2 (2026), introducing revisions to the export value-added tax (VAT) rebate regime covering certain photovoltaic (PV) and battery-related products. The authorities clarified that the applicable treatment will be based on the export date recorded on the customs declaration.

Effective April 1, 2026, export VAT rebates for the specified PV-related products will be eliminated. For battery products, the export VAT rebate will be lowered from 9% to 6% for the period from April 1 to December 31, 2026, before being fully withdrawn from January 1, 2027. The notice further confirms that for products subject to consumption tax, the existing export consumption tax rebate or exemption policy will remain in place.

The policy change is of particular relevance to the polyurethane sector, as it includes product categories that may encompass polyether materials traded as polyether polyols, subject to exporters’ declared HS codes and customs classification.

Consequently, exporters impacted by the change could experience higher effective export costs from April 2026, potentially prompting revisions to export pricing and contract negotiations.

Industry participants are advised to closely assess the implications for export margins and logistics planning. With rebate removal typically raising net export costs, both sellers and buyers may reconsider shipment timing and commercial arrangements ahead of the policy’s implementation where possible.

Source: Ministry of Finance, China