EV Export VAT Rebate Rate to Drop to 9%; China's 'New Three' Enter Systematic Competition Phase

On October 12, with the announcement by the Ministry of Finance and the State Administration of Taxation, the countdown to the reduction of export tax rebates for Chinese new energy vehicles has officially begun. According to the notice, starting April 1, 2027, the VAT export rebate rate for new energy vehicles will be lowered from 13% to 9%, while the consumption tax rebate policy remains unchanged. The rebate rate determination is based on the export date noted on the customs declaration—meaning that even if a sales contract is signed this year, vehicles exported after April 1 next year must comply with the new standard. Following solar panels and lithium batteries, policies for new energy vehicles are gradually returning to neutrality. Industry insiders believe that while the export rebate reduction represents a shift in policy, it signifies an advancement in capability. China's automotive exports will transition from a period of combined policy dividends and cost advantages to a comprehensive competition in products, brands, and localized operations; meanwhile, the foreign trade 'new three' will collectively enter a new phase of systematic competition.