China starts two battery tax clocks — lithium in September, ordinary solar next April
TL;DR
China taxes lithium batteries at 2% from Sept. 2026; ordinary solar cells follow in April 2027.
China's finance ministry, customs agency and tax administration have split battery consumption tax across two start dates: lithium batteries face a 2% rate from September 1, 2026, while ordinary photovoltaic cells start at 2% on April 1, 2027. The rates rise to 4% on September 1, 2027 and April 1, 2028, respectively.
The September group also includes mercury-free primary batteries, nickel-metal hydride batteries and vanadium redox flow batteries. The notice does not tax every new-energy battery: sodium-ion, solid-state and fuel cells, plus perovskite, tandem and gallium-arsenide photovoltaic cells, are exempt from September 1, 2026 through December 31, 2028.
Names alone do not qualify a product for exemption. Companies must meet national standards and obtain a test report from a CMA-qualified institution before their first exemption filing. Products without a national standard or failing one cannot qualify. Tax already paid on battery inputs used continuously to make taxable batteries can be deducted according to current-period usage.
The schedule will enter cost and margin calculations at Chinese technology and battery companies such as BYD, but the notice gives no company tax bill, retail price increase or fiscal-revenue forecast. Lithium products start at 2% on September 1; ordinary solar cells retain roughly seven more months before their tax begins.
via Phoenix Finance / State Taxation Administration / Eastmoney
The September group also includes mercury-free primary batteries, nickel-metal hydride batteries and vanadium redox flow batteries. The notice does not tax every new-energy battery: sodium-ion, solid-state and fuel cells, plus perovskite, tandem and gallium-arsenide photovoltaic cells, are exempt from September 1, 2026 through December 31, 2028.
Names alone do not qualify a product for exemption. Companies must meet national standards and obtain a test report from a CMA-qualified institution before their first exemption filing. Products without a national standard or failing one cannot qualify. Tax already paid on battery inputs used continuously to make taxable batteries can be deducted according to current-period usage.
The schedule will enter cost and margin calculations at Chinese technology and battery companies such as BYD, but the notice gives no company tax bill, retail price increase or fiscal-revenue forecast. Lithium products start at 2% on September 1; ordinary solar cells retain roughly seven more months before their tax begins.
via Phoenix Finance / State Taxation Administration / Eastmoney
