China's Ministry of Finance and State Taxation Administration on October 12 issued Joint Announcement No. 29 of 2026, adjusting export tax rebates for a handful of product groups. The headline change: from April 1, 2027, the VAT export rebate on new energy vehicles (NEVs) drops from 13% to 9%. From the same date, VAT export rebates on e-cigarette devices and related products are scrapped altogether. Where any of these goods are subject to consumption tax, the existing export refund or exemption for that tax stays in place.
The cut-off is set by the export date on the Chinese customs declaration. Vehicles cleared for export on or before March 31, 2027 still qualify for 13%; those declared from April 1 onward get 9%. What counts is the declaration date in China, not when the car reaches Kazakhstan or clears Kazakh customs.
Annex 1 lists 67 tariff lines under China's customs nomenclature, all of them for complete vehicles: battery-electric semi-trailer tractors, buses with ten or more seats and trucks; plug-in hybrid passenger cars with petrol or diesel engines, broken down by engine size; passenger vehicles powered by electric motors only; electric-drive off-road dump trucks; and electric short-haul tractors and carts used in factories, warehouses, ports and airports. No separate codes for components appear on the list.
The move follows an earlier step. On January 8, the two agencies issued Announcement No. 2 of 2026, which removed the VAT export rebate on photovoltaic products from April 1, 2026, cut the rate for batteries from 9% to 6% for April 1 to December 31, 2026, and abolishes it for batteries from January 1, 2027. Finished NEVs are now the third item in that group to be adjusted. According to Yicai, the NEV rate had stayed at 13%, the same as for combustion-engine cars, since China's VAT reform of April 2019.
The change lands with exports running near record levels. Xinhua and Cailian Press both cite China Association of Automobile Manufacturers data showing 1.053 million vehicles exported in September, including 571,000 NEVs, up 1.6 times year on year. NEVs have made up more than half of China's vehicle exports for four months running.
Four percentage points off the rebate rate show up first in exporters' cost sheets: less input VAT comes back, and the gap has to be absorbed or passed on in export prices. Cui Dongshu, head of the China Passenger Car Association, told Yicai and Cailian Press that low-margin, high-volume budget models will feel the pinch most in the short run, while premium models can absorb it more easily. In his view the export trend rests on supply-chain strength and product competitiveness and will not reverse, and the change may push carmakers to localize production abroad faster. Li Yanwei, an expert with the China Automobile Dealers Association, said brands with established service networks have room to raise prices, while those competing mainly on price may not. These are industry assessments; whether and how individual brands change export prices remains up to the companies.
For Kazakhstan, three points are worth separating out.
Rules related to this news
First, the change sits entirely on the Chinese export side. Kazakhstan's import duties, VAT and other charges are not affected by the announcement and continue to follow Kazakh rules.
Second, Chinese brands already carry real weight in the Kazakh market. LS reported that Allur vice president Maxim Myagchilov said in September that Chinese brands took 44% of Kazakhstan's official new-car market in the first eight months of 2026. The same report said Li Auto plans to begin SKD assembly of its L6, L7 and L9 at the Saryarka AvtoProm plant in Kostanay in November, initially for the domestic market. How kits and components for projects like this are classified at Chinese customs, and whether they fall under the NEV list, depends on the actual tariff classification; it is safer to confirm this in advance with a customs broker and the tax authority than to assume.
Third, there are roughly five and a half months before the new rate applies. Kazakh dealers buying finished vehicles from China may want to agree with suppliers now on how the rebate change will be handled in pricing for contracts delivering after April 2027. Chinese exporters, for their part, will need to plan shipments around the declaration date.
Full texts of both announcements and their annexes are available on the website of the Ministry of Finance's Tax Policy Department and in the State Taxation Administration's policy database.
(The illustration is AI-generated, is not a photograph and does not directly depict the news.)
资料来源：
Ministry of Finance of China, Tax Policy Department – Announcement No. 29 of 2026: https://szs.mof.gov.cn/zhengcefabu/202610/t20261012_4002592.htm
State Taxation Administration policy database – Announcement No. 29 of 2026 with Annex 1 (NEV product list): https://fgk.chinatax.gov.cn/zcfgk/c102416/c5252906/content.html
State Taxation Administration policy database – Announcement No. 2 of 2026: https://fgk.chinatax.gov.cn/zcfgk/c102416/c5246745/content.html
Xinhua: https://english.news.cn/20261012/e4ee511f92b74082873f48de3e7abb2d/c.html
Yicai (published by 21jingji.com): https://www.21jingji.com/article/20261013/herald/f708105542f4d569a5b4ec7427a97755.html
Cailian Press (CLS): https://www.cls.cn/detail/2502674
LS (lsm.kz): https://lsm.kz/v-kazahstane-zapuskaetsya-proizvodstvo-avtomobilej
Key facts
- The Announcement (2026年第29号) issued by 财政部、税务总局 specifies that, starting 1 April 2027, the VAT export tax rebate rate for new energy vehicles will be reduced from 13% to 9%.
- The export tax rebate rate applicable to new energy vehicle exports from China is determined by the export date stated on the export customs declaration, regardless of when the vehicles arrive in Kazakhstan or when customs clearance is completed.
- Attachment 1 to the announcement lists 67 complete-vehicle categories under the commodity codes of 中国海关, covering categories such as pure-electric passenger vehicles and trucks and plug-in hybrid passenger vehicles, but does not list parts and components separately.
- This policy changes only export-side tax rebates in China and does not affect customs duties, VAT or other taxes during the import process in Kazakhstan.
- Kazakh media outlet LS reported that the vice president of Allur集团 said that Chinese brands accounted for 44% of Kazakhstan's official new-car market in the first eight months of this year.
- 理想汽车 plans to produce the L6, L7 and L9 by assembling major components at the Saryarka AvtoProm plant in Kostanay in November, initially for Kazakhstan's domestic market.
FAQ
When will the export tax rebate rate for new energy vehicles be reduced?
Starting 1 April 2027, the VAT export tax rebate rate for new energy vehicles will be reduced from 13% to 9%.
Which date determines whether the 13% or 9% rate applies?
The applicable date is the export date stated on the customs declaration for the exported goods: vehicles declared for export on or before 31 March 2027 are subject to a 13% rebate rate, while those declared on or after 1 April are subject to 9%. This date is unrelated to when the vehicles arrive in Kazakhstan or when customs clearance is completed there.
Will this adjustment affect import duties or taxes in Kazakhstan?
The announcement changes only export-side tax rebates in China and does not affect customs duties, VAT or other taxes during the import process in Kazakhstan. How vehicles are taxed after entry remains subject to Kazakhstan's existing regulations.
Which products are included in the affected list?
Attachment 1 to the announcement lists 67 complete-vehicle categories under the commodity codes of 中国海关, covering categories such as pure-electric passenger vehicles and trucks and plug-in hybrid passenger vehicles, but does not list parts and components separately.
What should be noted when assembling Chinese-brand vehicles in Kazakhstan?
The commodity codes under which assemblies and parts shipped from China are declared, and whether they fall under the complete-vehicle list, are determined by their actual customs classification. It is advisable to verify this in advance with the customs broker and competent tax authority rather than make assumptions.