China to Cancel Export VAT Rebates for PV-Related Products from 1 Apr 2026; Policy Includes Polyether Materials Used for Polyether Polyols.

China’s Ministry of Finance and the State Taxation Administration have issued Announcement No. 2 (2026), revising the export value-added tax (VAT) rebate policy for a defined set of photovoltaic-related products and battery products. The authorities confirmed that the applicable policy will be determined by the export date stated on the customs export declaration.

Under the new measures, export VAT rebates will be cancelled for the covered PV-related products effective April 1, 2026. For battery products, the export VAT rebate rate will be reduced from 9% to 6% from April 1, 2026 to December 31, 2026, and will be cancelled entirely from January 1, 2027. The announcement also states that for any products within scope that are subject to consumption tax, the export consumption tax rebate (or exemption) policy remains unchanged.

For the polyurethane industry, the update is particularly relevant because it captures product classifications that may apply to polyether materials commonly traded as polyether polyols (depending on the exporter’s declared HS code and customs classification). As a result, affected exporters may face higher effective export costs after April 1, 2026, which could translate into adjustments in export offers and contract pricing discussions.

Market participants should monitor potential impacts on export netbacks and shipment planning. As rebate removal typically increases the effective export cost for in-scope products, exporters and buyers may also reassess shipment schedules and commercial terms ahead of the implementation date where feasible.

Source: Ministry of Finance