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China to lower NEV export tax rebate to 9 percent in April 2027

China to lower NEV export tax rebate to 9 percent in April 2027

China announced that it will cut the value-added tax (VAT) export rebate rate for new
energy vehicles (NEVs) to 9 percent from 13 percent starting April 1, 2027.
Export VAT rebates for e-cigarette devices and related products will be eliminated starting on the same date, according to a joint statement issued by China's Ministry of Finance and the State Taxation Administration.

Export consumption tax policies for taxed products will remain unchanged, with existing tax refund or exemption arrangements remaining in place, according to the statement.

The adjustments come as China continues to optimize its export tax rebate policy.

The country will eliminate export VAT rebates for photovoltaic products starting April 1, 2026, while cutting the rebate rate for battery products to 6 percent from 9 percent on the same date. Rebates for battery products will be eliminated starting January 1, 2027.

China is the world's largest market for NEVs, a category that includes battery electric vehicles and plug-in hybrid vehicles. The sector has grown rapidly in recent years, with automakers increasingly targeting overseas markets to drive growth.

China exported 1.053 million vehicles in September, up 61.4 percent year-on-year, including 571,000 NEVs, more than double the year-earlier figure, according to the latest data. NEVs accounted for more than half of total vehicle exports for the fourth consecutive month.
 

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