2Firsts, January 10, 2026 — On January 9, China’s Ministry of Finance and the State Taxation Administration issued Announcement No. 2 of 2026, announcing adjustments to value-added tax (VAT) export rebate policies for certain products.
According to the announcement, VAT export rebates for photovoltaic and other products will be cancelled starting April 1, 2026. In the appended Product List for Photovoltaic and Other Items, product code 2404120000 — “products for inhalation without combustion, containing nicotine, not containing tobacco or reconstituted tobacco” — is included. Based on this, e-cigarette products will no longer be eligible for VAT export rebates.
The announcement also adjusts VAT export rebate policies for battery products. From April 1 to December 31, 2026, the VAT export rebate rate for battery products will be reduced from 9% to 6%; from January 1, 2027, VAT export rebates for battery products will be cancelled. The relevant measures apply to products listed in the appended Battery Product List. Where e-cigarette battery packs are exported as battery products and declared separately at customs, the applicable export rebate treatment will depend on whether the declared product falls within the scope of the battery product list.
2Firsts will continue to monitor developments and report on the implications of the policy for relevant product exports.
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