Skip to content

Connecting business. Building understanding. Advancing peace.

China to Cut NEV VAT Export Rebate to 9% in April 2027

China's tax authorities announced a reduction in the value-added tax export rebate for new energy vehicles from 13 percent to 9 percent, effective April 1, 2027. The measure affects battery electric and plug-in hybrid vehicle shipments to foreign markets including the Gulf. Domestic consumption tax refund and exemption structures remain unchanged.

Issuing authority
Ministry of Finance, State Taxation Administration
Jurisdiction
China
Publication date
October 13, 2026
Effective date
April 1, 2027
Stage
Final rule
Official source
www.wam.ae
Illustration: A modern commercial vehicle shipping terminal showing orderly rows of new electric cars ready for loading onto large roll-on roll-off ca
Illustration

China's Ministry of Finance and State Taxation Administration have announced an adjustment reducing the value-added tax (VAT) export rebate on new energy vehicles from 13 percent to 9 percent, according to Emirates News Agency (WAM).

The policy change is scheduled to take effect on April 1, 2027. It directly impacts battery electric and plug-in hybrid vehicle exports to overseas destinations, including markets in the Gulf.

Existing domestic consumption tax refund and exemption frameworks will remain unchanged following the adjustment.

The revision follows official trade data showing that Chinese automotive exports reached 8.205 million units during the January–September 2026 period.

Sources

The UECN Brief

Policy updates, China–UAE business news and industry insights, delivered to your inbox.

Language
Subscriptions

Double opt-in: we send a confirmation link. Unsubscribe at any time. Privacy