On July 17, the Tax Department of the Ministry of Finance issued the "Notice on Adjusting the Consumption Tax Policy for Some Batteries".
The announcement shows that since April 1 , 2027, the consumption tax on photovoltaic cells (also known as solar cells) will be levied at a 2% tax rate; Since April 1 , 2028, a consumption tax has been levied on photovoltaic cells at a rate of 4% .
It is worth noting that from September 1, 2026 to December 31, 2028, the consumption tax on perovskite cells, stacked cells and gallium arsenide cells in photovoltaic cells will be exempted.
At the same time, the battery products produced and commissioned by taxpayers to enjoy the tax reduction and exemption policy shall conform to the national standards of the products, and the products that do not conform to the national standards or do not have the national standards shall not enjoy the tax reduction and exemption policy.
Taxpayers who purchase, commission processing and recover from production enterprises, or directly import battery products that have paid consumption tax by means of self-operation or commission for continuous production of taxable battery products are allowed to deduct the consumption tax paid on raw materials according to the quantity of production received in the current period.
Taxpayers who produce taxable battery products for their own use shall not pay consumption tax if they use them for the continuous production of taxable battery products; if they use them for the continuous production of products other than taxable batteries or for other purposes, they shall declare and pay consumption tax when they are transferred for use.
The original text is as follows:
Announcement
of the Ministry of Finance, the General Administration of Customs and the General Administration of Taxation on the Adjustment of the Consumption Tax Policy on Some Batteries Announcement No.20
of 2026 In order to further improve the consumption tax system, The adjustment of the battery consumption tax policy is hereby announced as follows:
For mercury-free primary batteries, nickel-metal hydride batteries (also known as nickel-hydrogen batteries or nickel-hydrogen batteries), lithium primary batteries, lithium-ion batteries, all-vanadium II." Consumption tax is levied on photovoltaic cells (also known as solar cells) at a rate of 2%; since April 1, 2028, consumption tax is levied on photovoltaic cells at a rate of 4%.
From September 1, 2026 to December 31, 2028, sodium-ion batteries , solid-state batteries,
4. Taxpayers who produce or commission processing battery products that enjoy the above-mentioned tax reduction and exemption policies shall conform to the national standards of the products, and shall not enjoy the above-mentioned tax reduction and exemption policies for products that do not conform to the national standards or have no national standards.
Taxpayers shall obtain a test report issued by a testing institution that the product meets the corresponding national standards before declaring the reduction or exemption of consumption tax on battery products for the first time. The testing institution shall hold the current valid Certificate of Qualification Accreditation of Inspection and Testing Institutions (using CMA logo) issued by the market supervision and administration departments at or above the provincial level according to law, and the corresponding battery testing items shall be included in the schedule of the Certificate of Qualification Accreditation of Inspection and Testing Institutions.
5. Taxpayers who purchase, process and recover from production enterprises, or directly import battery products that have paid consumption tax by means of self-operation or entrustment for continuous production of taxable battery products are allowed to deduct the consumption tax paid on raw materials according to the quantity of production and use in the current period.
VI. Taxpayers who produce taxable battery products for their own use and use them for the continuous production of taxable battery products shall not pay consumption tax; if they use them for the continuous production of products other than taxable batteries or for other purposes, they shall declare and pay consumption tax when they are transferred for use.
7. In addition to the above provisions, other matters concerning the collection and administration of battery consumption tax shall be implemented in accordance with the relevant provisions of the Provisional Regulations of the People's Republic of China on Consumption Tax and the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Consumption Tax. Where the provisions of the Notice of the
Ministry of Finance and the State Administration of Taxation on the Levy of Consumption Tax on Battery Coatings (Cai Shui [2015] No.16) and the Notice of the Ministry of Finance and the State Administration of Taxation on the Levy of Import Consumption Tax on Battery Coatings (Cai Shui [2015] No.4) are inconsistent with the provisions of this announcement, this announcement shall prevail. See Annex 1 for the notes on the scope of
battery consumption tax, and see Annex 2 for the taxable items of battery import consumption tax.
Hereby announce.
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