China's Ministry of Finance and State Taxation Administration cut the export VAT rebate on batteries from 9% to 6% for April to December 2026 and cancel it from 1 January 2027 (Announcement No. 2 of 2026, dated 8 January 2026). Lithium-ion batteries are on the list. For anyone buying battery storage, rack batteries or battery packs from China, the last quarter of 2026 is the last one with the rebate. Here is what changes, what does not, and what to ask your supplier.
What changes
China refunds exporters part of the value-added tax on the goods they ship abroad: the export VAT rebate. Announcement No. 2 of 2026 changes it for two groups of goods. For photovoltaic and some other products, 249 tariff codes including solar cells and modules, the rebate was cancelled from 1 April 2026. For batteries, the rate was cut from 9% to 6% from 1 April to 31 December 2026, and from 1 January 2027 the rebate is cancelled.
The battery list has 22 tariff codes: lithium-ion accumulators (HS 8507.60), nickel-metal hydride and vanadium flow batteries, other accumulators and their parts, and primary batteries. In practice this covers LFP cells and modules, rack batteries for server rooms and telecom, battery packs for UPS and home storage, and the battery cabinets of commercial storage systems when they are declared as batteries.
Which rate applies is decided by the export date on the customs export declaration, not by the date of the contract, the invoice or the payment.
What does not change
Inverters, UPS units, chargers and other static converters (HS 8504.40) are on neither list, and neither are computers (HS 8471): the announcement does not touch them. For a complete system, such as an all-in-one storage cabinet with a built-in inverter or a UPS shipped with separate battery modules, what matters is the tariff code under which the factory declares each item. Ask before you order.
This is a Chinese export measure. It does not change customs duty or VAT in the importing country: those follow the importer's own tariff, as described in our country guides.
What it means for prices
Exporters that priced batteries with the rebate lose it on goods with an export date from 1 January 2027. How much of that reaches the export price depends on how each supplier calculates: some absorb part of it, many will not. In quotes we received in October 2026, one storage manufacturer already set a November deadline for orders at the current price, citing this change.
To compare like with like, ask for the same configuration at two prices: with an export date on or before 31 December 2026, and with an export date from 1 January 2027.
Timing: the export date is what counts
Because the export date on the declaration decides the rate, an order placed late in the year may miss the 2026 rate. For goods that actually leave China, the export date (出口日期 on the Chinese declaration) is the day the ship, aircraft or other means of transport carrying them completes its exit formalities. It can be later than the day the goods leave the factory, are loaded or are declared to customs, so a sailing or flight that slips into January means no rebate for the exporter. Production of battery cabinets and rack batteries takes weeks, not days, and booking, inspection and export clearance add more. If you want the 2026 rate, agree the order, the deposit and the production slot early, and write the latest export date into the contract.
Lithium-ion batteries travel as dangerous goods (UN 3480, or UN 3481 when packed with or inside equipment). They need a UN38.3 test summary and dangerous-goods documents, and not every vessel or carrier takes them, so book space early.
What to ask your supplier now
1. Two prices for the same configuration: for an export date (the date on the customs export declaration) on or before 31 December 2026, and from 1 January 2027. 2. The tariff code the factory will declare for each item: battery modules, cabinet, inverter. 3. The production lead time and the last order date that still leaves time for a 2026 export date, in writing, and who bears the cost if the export date slips into January. 4. Certificates and transport documents: UN38.3, MSDS, IEC 62619, and for storage systems UL 9540A or the test your market requires. 5. How long the offer is valid.
How we help
We ask factories for both prices and for the codes they declare, compare offers on the same configuration and handle export from Guangzhou and Shenzhen. Send us the power, the energy and the country of delivery, and we will reply with options within two business days.
Sources
Announcement No. 2 of 2026 of China's Ministry of Finance and State Taxation Administration on adjusting the export tax rebate policy for photovoltaic and other products, dated 8 January 2026, with Annex 1 (photovoltaic and other products) and Annex 2 (battery products), as published by the State Taxation Administration; the rules for filling in the customs declaration, annexed to Announcement No. 18 of 2019 of the General Administration of Customs of China (item 5, import and export date). Checked on 31 October 2026. Tax rules can change: confirm the rate for your goods with your supplier before you order.