New rules for export tax rebates in 2026: 0% for photovoltaics and only 6% for batteries

Entering 2026, the “rules of the game” for export tax rebates have completely changed.
The State Administration of Taxation’s Announcement No. 5 of 2026 (hereinafter referred to as “Announcement No. 5”) has been officially implemented.
This is not a minor repair, but a triple impact of extended filing deadlines, dramatic fluctuations in tax refund rates, and tightened compliance red lines.
Especially foreign trade companies that deal in photovoltaics, batteries, and ceramic sanitary ware, you don’t have much time left to prepare.
As a financial person, you must not only understand “how to calculate”, but also “how to live”.

1. Core bomb: major adjustment of the declaration period (36-month red line)

What many finance professionals used to fear was “overdue declarations.”
The new regulations have made disruptive adjustments to this.
According to the “Administrative Measures for Value-Added Tax and Consumption Tax Refund (Exemption) for Export Business” (Announcement No. 5) and supporting policies, for goods declared for export starting from January 1, 2026, the tax refund declaration period will be extended to 36 months from the date of customs declaration.

Key points:

• Separation between old and new: Goods exported before January 1, 2026 shall be handled according to the old rules, do not mix them up.
• The consequences of exceeding the deadline are serious: once the declaration is not made for more than 36 months, it will be directly regarded as domestic sales and VAT must be paid.
  For foreign trade companies, this often means “if they don’t get the tax refund, they have to pay back taxes + late payment fees.”

Financial advice: Don’t think that you will relax after a long time.
36 months is for extreme situations. Efficient turnover is the key to saving taxes. If you can, report early.

2. Money Bag Alert: The tax rebate rate has dropped sharply (photovoltaics and batteries are hardest hit)

This is the change most closely related to your “money bag”.
In conjunction with Announcement No. 2 of 2026 by the Ministry of Finance and the State Administration of Taxation, the adjustment of the tax refund rate is divided into levels and time periods.

1. Photovoltaic and ceramic sanitary ware: “0 tax rebate” starting from April 1st

Effective from April 1, 2026, the export VAT refund for photovoltaic and other products will be cancelled.

In-depth interpretation: This means that starting from the second quarter, exports throughout the photovoltaic industry chain will no longer enjoy tax rebates.
The “tax refund profit” column in the quotation must be deleted directly. Finance must immediately calculate the cost increase and issue a price increase warning to the business department.

2. Battery products: stepwise decline (given a one-year buffer period)

Battery products are more complicated and are divided into two steps:

• Phase 1 (2026.4.1 – 2026.12.31): The tax rebate rate is reduced from 9% to 6% (decrease by 3 points).
• The second phase (starting from January 1, 2027): Complete cancellation of export tax rebates.

Financial advice: 2026 is the “last window period” for battery companies.
If you can ship goods before April 1, grab it; if you can confirm revenue before January 1, 2027, hurry up.
Even if you declare customs one day late, the tax refund rate may change.

3. Compliance life and death line: the four streams must be consistent (the first order is particularly strict)

The new regulations relax the deadline, but tighten the review.
The current tax refund audit is “Big Data Skynet”, where the fourth phase of the Golden Tax + Customs + Foreign Exchange data are directly connected to the Internet for penetrating inspection.

Four hard thresholds for tax refund (all are indispensable):

1. Qualification: general taxpayer + export tax refund and tax filing.
2. Goods: must be declared to customs and leave the country.
3. Finance: Revenue must be confirmed + foreign exchange collected in full.
4. Documents: contracts, invoices, logistics, and funds are “four streams consistent”.

Pay special attention to the “first order”:

According to the spirit of Announcement No. 5, the first tax refund for a newly established enterprise will be subject to extremely strict review.
You must wait for all the money to arrive (receipt in full) before you can declare.
In the past, it was possible to collect foreign exchange and refund at the same time, but now this is not possible for the first order, and the advance declaration system directly pops up to reject it.

4. Financial Practice: If the information is correct, the account will arrive quickly

The new regulations promote “paperless” and “one form for everything”. Although it is convenient, the requirements for document verification are higher.

It is recommended that the finance department establish a “one-house” electronic file folder:

1. Procurement chain: procurement contract + input invoice + payment invoice + domestic transportation invoice.
2. Customs declaration chain: customs declaration form (check that the product name/amount is word for word) + bill of lading (both the shipowner’s bill/freight forwarding bill must be retained) + packing list.
3. Capital chain: Bank exchange receipt voucher (this is a must-check item, especially for the first order).

Why?

Because Announcement No. 5 strengthens the document filing system, the retention time is no less than 10 years.
Once a tax audit fails to produce anything, not only will taxes have to be paid, but it may also affect the classification management level of the export tax rebate enterprise.

5. “Fool-style” operation flow for newbies in finance

Although Announcement No. 5 integrates the processes, the order cannot be messed up:

1. Step 1: Filing (now “five forms in one”, just go to the electronic tax bureau to fill out one form, and the efficiency is increased by 55%).
2. Step 2: Customs declaration and invoicing (remember: the product name and unit on the customs declaration form must match the input invoice, and no word is wrong).
3. Step 3: Wait for the foreign exchange to be collected (especially for the first order, don’t make a low-price declaration before the money arrives).
4. Step 4: Data self-examination (submit through the “single window” or electronic tax bureau, and the system will automatically compare. If there is any doubt, don’t panic and make changes according to the prompts).
5. Step 5: Sit back and wait for the money to be credited (after approval, it usually takes 15-30 working days to be refunded to the account).

6. Summary

The new export tax rebate policy in 2026 superficially relaxes the declaration time (36 months), but in fact uses big data to strengthen the control of compliance and foreign exchange collection.
For experienced financers, please update your ledger immediately, and focus on marking the time node of April 1; for novice financers, don’t just focus on “how to calculate”, but learn more about “how to prepare”.

Remember: In the current regulatory environment, tax refunds are not calculated, but based on “compliance”.