2026-2027 Adjustments to China's Export Tax Rebate Policy for PV Products: Essential Guide for Foreign Trade Companies

Recently, China's Ministry of Finance and State Taxation Administration announced a significant policy adjustment that will directly impact the cost structure of sourcing photovoltaic modules and cell products from China. As your trusted trade partner, we have compiled key information and recommendations for your reference.‌

On January 9, China's Ministry of Finance announced adjustments to export tax rebate policies for photovoltaic products and other commodities.

Effective April 1, 2026, VAT export tax rebates for photovoltaic products and other commodities will be abolished. From April 1, 2026, to December 31, 2026, the VAT export tax rebate rate for cell products will be reduced from 9% to 6%. Starting January 1, 2027, the VAT export tax rebate policy for cell products will be eliminated.

For overseas buyers, this move may directly impact international procurement costs.

Refund Mechanism Explained: In essence, when finished goods are exported, the Chinese government refunds manufacturers the VAT paid domestically on procured components, raw materials, and production processes. This practice—ensuring export goods achieve de facto tax-free status in their country of origin to maintain global competitiveness—is a common international trade convention.

Consequences of Cancellation: Eliminating refunds means Chinese exporters can no longer claim this VAT. Previously offset VAT costs now become embedded, non-recoverable expenses. For instance, when the rebate rate drops from 13% to 0%, exporters face an immediate 13% increase in product tax costs.

Our Recommendations and Action Plan

We advise against excessive concern but urge proactive planning:

Initiate Forward Assessment: Incorporate this policy variable into your 1-3 year project cost models and budget planning.

Explore Lock-in Solutions: For projects with clear medium-to-long-term requirements, we can jointly explore possibilities for negotiating forward price lock-ins with premium factories to mitigate future cost volatility.

Maintain Close Communication: We will continuously monitor policy details and market reactions, providing timely updates and analysis.

Should you require more specific cost impact calculations for particular products or wish to discuss response strategies, please contact us at any time.

Plan now, respond with confidence.