On October 12, 2026, China's Ministry of Finance and State Taxation Administration published the Announcement on Adjusting Export Rebate Policies for Certain Products (Announcement No. 29 of 2026). From April 1, 2027, the value-added tax (VAT) export rebate rate for new energy vehicles will be lowered from 13% to 9%.

Chinese exporters receive a refund of some or all of the VAT borne domestically when they export. A 4-percentage-point cut in the rebate rate for finished vehicles means that cost has to be passed on in export prices or absorbed in margins. The applicable rate is determined by the export date shown on the export goods customs declaration.

BEVs and PHEVs covered, commercial vehicles too

Annex 1 of the announcement, the New Energy Vehicle Product List, names 67 tariff lines (commodity codes).

Passenger cars, etc.
Heading
8703
Lines
58
Main content
Vehicles with only an electric drive motor (2); vehicles with both an engine and a drive motor that can be charged externally (56)
Buses
Heading
8702
Lines
4
Main content
Large, medium and small buses with only an electric drive motor
Goods vehicles
Heading
8704
Lines
2
Main content
Goods vehicles with only an electric drive motor; off-highway electric-wheel dump trucks
Tractors
Heading
8701
Lines
1
Main content
Electric tractors for semi-trailers
On-site transport
Heading
8709
Lines
2
Main content
Electric short-distance transport vehicles used in factories, warehouses, ports, airports, etc.

All hybrids on the list are vehicles that can be charged from an external power source (PHEVs). Tariff lines for PHEVs are listed by displacement class for both gasoline-engine and diesel-engine versions. PHEVs face the same rebate cut as BEVs.

The same announcement also cancels the VAT export rebate for e-cigarette devices and apparatus and other products from April 1, 2027. The export consumption tax treatment for products subject to consumption tax is unchanged.

The third step after batteries and solar

This revision is not a one-off. In Announcement No. 2 of 2026 dated January 8, 2026, the Ministry of Finance and State Taxation Administration had already revised export rebates for photovoltaic and other products and for battery products.

  1. April 1, 2026
    Export rebate for solar products abolished

    Announcement No. 2 of 2026. Battery products cut from 9% to 6%.

  2. January 1, 2027
    Export rebate for battery products abolished

    Announcement No. 2 of 2026. 6% until December 31, 2026.

  3. April 1, 2027
    NEV rebate rate cut from 13% to 9%

    Announcement No. 29 of 2026. 67 tariff lines including BEVs, PHEVs and electric commercial vehicles.

The rebate rate for finished vehicles falls three months after the battery rebate disappears. Export tax incentives are shrinking step by step for both stand-alone battery exports and exports of the vehicles that carry them.

What it means for corporate planning and procurement teams

  • Watch for front-loaded exports before April 2027: because the rebate rate is determined by the export date on the customs declaration, exports may be pulled forward to March 2027 or earlier. This could affect dealer inventories in Europe and emerging markets as well as shipping capacity
  • Pass on or absorb: 4 points is not small for Chinese automakers in an ongoing price war. It adds one more factor to the decision between raising export prices and switching to local production in destination markets. The tax side now adds a change to the momentum of China-made EVs gaining global share
  • The rebate does not go to zero: the rebate for finished vehicles falls to 9%, but is not abolished as with batteries. The announcement says nothing about further cuts
  • Commercial vehicles and on-site transport are covered: electric buses, electric trucks and electric transport vehicles for airports and ports are included. Operators sourcing such vehicles from China should check how quotes change from April 2027

Referenced Fact Cards