Export tax rebate rate adjustment table with lithium battery and solar panel HS codes highlighted

The State Administration of Taxation (SAT), jointly with the Ministry of Finance, has released the 2026 Export Tax Rebate Rate Adjustment Notice (Announcement No. 15 of 2026), affecting 347 HS codes. Effective July 1, 2026, rebate rates for lithium batteries, solar panels, medical equipment, and certain new energy vehicle components will increase from 9% to 13%. Conversely, rebate rates for selected rare earth products and certain chemical precursors will decrease from 13% to 9% or 0%. This guide explains the key changes, the products affected, and practical steps for exporters to maximize refunds.

1. Increased Rebate Rates – Lithium Batteries, Solar Panels, Medical Equipment

The 2026 adjustment raises export VAT rebate rates for 218 HS codes in clean energy and medical sectors from 9% to 13%. Key product categories include:

  • Lithium batteries (HS codes 850760, 850650): Lithium-ion batteries for EVs, energy storage, and consumer electronics. Rebate rate increased from 9% to 13%.
  • Solar panels and photovoltaic modules (HS codes 854142, 854143): Monocrystalline, polycrystalline, and thin‑film solar panels. Rate increased from 9% to 13%.
  • Medical equipment (HS codes 901890, 902212, 901819): Diagnostic imaging devices (CT, MRI), surgical instruments, and patient monitoring systems. Rate increased from 9% to 13%.
  • New energy vehicle components (HS codes 850760, 870380): EV batteries, electric motors, and charging equipment. Rate increased from 9% to 13%.
  • Wind turbine components (HS codes 850231, 850300): Blades, generators, and nacelles. Rate increased from 9% to 13%.

For a typical exporter with RMB 10 million in annual sales of lithium batteries, the rebate increase from 9% to 13% results in an additional RMB 400,000 in refundable VAT – a significant cash flow improvement.

⚡ Financial impact: The increased rebate rates apply to exports declared on or after July 1, 2026. Exporters should delay shipments where possible to benefit from the higher rate, provided contractual delivery dates allow.

2. Reduced Rebate Rates – Rare Earth Products and Chemical Precursors

Conversely, rebate rates for 129 HS codes in the rare earth and certain chemical sectors have been reduced. Key products affected:

  • Rare earth oxides and metals (HS codes 284690, 280530): Neodymium, praseodymium, dysprosium, and other rare earth elements. Rebate rate reduced from 13% to 9%.
  • Rare earth permanent magnets (HS code 850511): Neodymium‑iron‑boron (NdFeB) magnets. Rate reduced from 13% to 9%.
  • Certain chemical precursors (HS codes 291419, 291719): Fentanyl‑related intermediates. Rate reduced from 9% to 0% (full elimination).
  • Tungsten products (HS codes 810199, 810194): Tungsten powder, rods, and wire. Rate reduced from 13% to 9%.

Exporters of these products face reduced refunds. For a rare earth exporter with RMB 10 million in annual sales, the reduction from 13% to 9% results in RMB 400,000 less refundable VAT. Companies should consider price adjustments or supply chain restructuring to mitigate the impact.

3. Products with No Change – Key HS Codes Not Affected

Many major export categories retain their existing rebate rates. Notably:

  • Textiles and apparel (HS codes 61‑63): Remain at 13%.
  • Consumer electronics (HS codes 8517, 8528): Remain at 13%.
  • Furniture (HS codes 9401, 9403): Remain at 13%.
  • Toys (HS codes 9503): Remain at 13%.
  • Steel and aluminum products: Remain at 0% (no rebate, consistent with previous policy).

Exporters of these products are unaffected by the 2026 adjustment. However, they should monitor future announcements as the government periodically reviews rebate rates.

4. Application Timeline and Documentation

The new rebate rates apply to exports with customs declaration dates on or after July 1, 2026. For exports declared before July 1 but shipped after, the old rates apply based on declaration date. Key documentation requirements remain unchanged:

  • Valid VAT special invoice (fapiao) from the supplier, showing the applicable 13% VAT rate.
  • Customs export declaration form with correct HS code reflecting the product.
  • Foreign exchange receipt confirmation from the bank.
  • Export contract and commercial invoice.

For mixed shipments containing both increased and decreased rate products, each HS code must be declared separately. Exporters should update their ERP systems to reflect the new rebate rates before July 1, 2026.

⏱️ Filing deadline: VAT rebate applications for June 2026 exports (under old rates) must be filed by July 15, 2026. For July 2026 exports (new rates), file by August 15, 2026.

5. Compliance and Penalties

To claim the higher rebate rates, exporters must meet standard compliance requirements:

  • Valid tax credit rating A or B: C or D rated enterprises may have rebate applications delayed or reduced.
  • Correct HS code classification: Mis‑declaring an HS code to obtain a higher rebate constitutes tax fraud and carries fines of 0.5‑5 times the underpaid tax, plus potential criminal liability.
  • Timely foreign exchange receipt: Foreign currency must be received within the statutory period (typically 30‑90 days after export). Delays may result in rebate denial.

Exporters should conduct an internal audit of HS code classifications and rebate rates before the July 1 effective date to avoid errors.

6. Practical Compliance Roadmap for Exporters

To maximize benefits under the 2026 rebate adjustments, follow this six‑step roadmap:

  1. Identify affected HS codes (Immediate). Review the complete list of 347 HS codes (available on SAT website). Flag products with increased rates (218 codes) and decreased rates (129 codes).
  2. Update ERP and billing systems (By June 15, 2026). Ensure VAT invoices issued after July 1 reflect the correct rebate rate category.
  3. Delay shipments where possible (For increased rate products). If contracts allow, schedule exports for July 1 or later to capture the 13% rebate.
  4. Accelerate shipments for decreased rate products (By June 30, 2026). Export rare earth and tungsten products before the July 1 deadline to lock in the 13% rate.
  5. Verify supplier VAT invoices. Ensure suppliers are correctly charging 13% VAT on purchases used to produce exported goods.
  6. File rebate applications promptly (Monthly). Submit applications within the monthly filing window (1st‑15th of the following month).
🚀 Need help navigating the 2026 export tax rebate adjustments? Contact a China trade tax advisor for a free rebate impact assessment. Our experts will analyze your HS codes, identify rate changes, and optimize your filing strategy. Request your free consultation today.

Summary: The 2026 export tax rebate adjustments affect 347 HS codes, effective July 1, 2026. Rebate rates for lithium batteries, solar panels, and medical equipment increased from 9% to 13%. Rebate rates for rare earth products and certain chemical precursors decreased from 13% to 9% or 0%. Exporters of affected products should delay shipments for increased‑rate goods (post‑July 1) and accelerate shipments for decreased‑rate goods (pre‑July 1). Proper HS code classification, valid VAT invoices, and timely foreign exchange receipt are critical for claiming refunds. By following the practical roadmap, exporters can maximize rebate benefits and avoid compliance penalties.