China to Reduce VAT Export Rebate on New Energy Vehicles to Nine Percent

China's Ministry of Finance and the State Taxation Administration announced plans to cut the value-added tax export rebate for new energy vehicles from 13 percent to 9 percent, taking effect April 1, 2027. In addition, export rebates on battery products will be fully eliminated starting January 1, 2027. Existing consumption tax refund and exemption mechanisms will remain unaffected.

Published October 14, 2026 Source: Emirates News Agency (WAM)

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Issuing authority: Ministry of Finance, State Taxation Administration
Jurisdiction: China
Effective date: April 1, 2027
Stage: Final rule
Official source: www.wam.ae

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China's Ministry of Finance and the State Taxation Administration have announced that the value-added tax (VAT) export rebate for new energy vehicles will be reduced from 13 percent to 9 percent, effective April 1, 2027, according to Emirates News Agency (WAM).

The policy adjustment applies to battery electric vehicles and plug-in hybrids. Furthermore, export rebates on battery products will be eliminated entirely starting January 1, 2027, while existing consumption tax refund and exemption mechanisms will remain intact.

The regulatory shift follows national data showing Chinese automobile exports reached 8.205 million units between January and September, which included more than 4 million new energy vehicles.

Chinese economists cited by the report stated that the measure aims to curb low-price competition and encourage brand- and technology-focused competition across global export destinations, including markets in the Gulf.