Export VAT rebate for new energy vehicles cut to 9% from April 2027 — Announcement No. 29 [2026]

On 12 October 2026, China's Ministry of Finance and the State Taxation Administration issued Announcement No. 29 [2026] on adjusting the export VAT rebate policy for selected products. Two changes matter for vehicle traders: from 1 April 2027, the VAT export rebate rate for new energy vehicles (NEVs) falls from 13% to 9% (product list in Annex 1); from the same date, the VAT export rebate is cancelled for e-cigarette equipment and related products (Annex 2).

Key rules:

• The applicable rebate rate is determined by the export date stated on the export goods customs declaration. Shipments whose declared export date falls before 1 April 2027 keep the current 13% rebate; shipments declared on or after that date are settled at 9%.
• For products listed that are subject to consumption tax, the export consumption-tax policy is unchanged and the existing consumption-tax rebate (exemption) continues to apply.
• Products not listed in the annexes keep their current treatment.

What it means for importers and dealers:

• Expect NEV export quotations to firm up after the change. A four-percentage-point rebate reduction has to land somewhere in the price chain — either in higher FOB quotes or thinner discounts.
• Timing risk is real. Sea freight to Latin America runs roughly 45–60 days, so orders signed in early 2027 may still have export declaration dates after 1 April 2027. If the rebate difference affects your landed cost, align the contract, production and vessel schedule before committing.
• Conventional gasoline and diesel vehicles are not in the Annex 1 list and keep their current treatment.
• The e-cigarette cancellation does not affect vehicle exports.

If you are planning NEV orders, confirm quotation validity, lock the shipping schedule early, and agree in the contract which side carries the timing risk around the 1 April 2027 cutoff. We quote FOB Shanghai / Nansha on request and confirm the applicable terms per order.