The Ministry of Finance, jointly with the State Taxation Administration, published Notice No. 2025-42 on December 28, 2025, updating the export VAT rebate rate schedule that took effect on January 1, 2026. This annual adjustment affects thousands of commodity codes and has direct implications for exporters' profit margins and working capital planning.

Key Rate Changes at a Glance

The new schedule maintains stability for the majority of export categories but introduces targeted reductions in specific sectors:

  • Machinery & Electronics — The vast majority of HS Chapters 84–85 retain the full 13% rebate rate. This covers industrial machinery, electrical equipment, consumer electronics, and precision instruments.
  • Steel Products — Selected flat-rolled steel products (HS 7208–7212) see a reduction from 13% to 10%, continuing the government's policy of discouraging export of raw, high-energy-consumption materials.
  • Aluminium Products — Certain aluminium plates, sheets, and strips (HS 7606–7607) drop from 13% to 9%, aligning with broader resource-conservation objectives.
  • Textiles & Apparel — Rates remain unchanged across all sub-categories, with most retaining the 13% full rebate.
  • Chemical Products — No major changes, though a small number of specialty chemicals moved from 10% to 9%.

What This Means for Your Business

For the majority of exporters, the 2026 schedule brings no immediate change to rebate calculations. However, if your product portfolio includes steel or aluminium items within the affected HS sub-headings, you should:

  1. Review your product HS classification against the updated rate table
  2. Recalculate expected rebate amounts for pending and future orders
  3. Adjust pricing or cost projections to reflect the reduced rebate where applicable
  4. Consult with your customs broker on whether transitional rules apply to shipments booked before January 1

Rebate Processing Timelines Remain Unchanged

The State Administration of Taxation confirmed that rebate processing timelines are unchanged for 2026. Qualified exporters using the "express rebate" channel (类别一) can still expect processing within 5 working days from the date of complete electronic submission, while standard applications are processed within 10 working days.

Our tax rebate service — which we typically process within 1 working day for qualifying clients — continues to operate under the new rate framework. We have updated our internal systems to reflect the 2026 rates and can provide a preliminary rebate estimate for any product category.