On January 8, 2026, the Ministry of Finance of the People’s Republic of China and the State Tax Administration published official notification (公告) No. 2, according to which VAT refund on export (VAT export rebate) for a number of product items will be canceled from April 1, 2026. The annex to the document explicitly states polyvinyl chloride (PVC) in primary forms according to the following codes:
- 39041090 – other PVC in primary forms (except paste);
- 39042100 – non-plasticized PVC;
- 39042200 – plasticized PVC.
Industry sources indicate that the current VAT refund rate for PVC exports was 13 percent. Starting from April 1, 2026, this refund for PVC according to the specified codes will be reset to zero.
The notification itself specifically notes that the key criterion is the date of export in the customs declaration, that is, it is important whether a particular delivery is considered to have been completed before or after April 1, 2026.
What kind of VAT are we talking about
In China, when exporting some goods, there is a VAT refund mechanism for exports. The manufacturer or trader pays the internal VAT, but when exporting the goods, the state returns the VAT at the established rate. For PVC, this rate was 13 percent.
The cancellation of VAT refunds for PVC exports means that:
- PVC exporters will no longer be able to receive this refund on shipments abroad;
- the additional “margin” of 13 percent disappears, which previously partially compensated for costs and allowed them to maintain a lower level of export prices;
- the pressure on export prices of Chinese PVC will be directed upwards if manufacturers and traders try to shift the effect of the cancellation of VAT refunds to buyers.
It is important that we are talking specifically about VAT refunds on exports (退税 / 免抵退), and not about the internal offset of input VAT within the Chinese economy.
Possible impact on the PVC market
Exactly how this measure will affect the market will depend on how the chain participants distribute the additional load.:
- part of the effect may be attributed to the increase in FOB export prices for PVC from China;
- a part can be taken over by manufacturers and traders by reducing margins;
- a revision of export directions and priority markets is possible.
For Russian PVC processors, this may mean:
- potential reduction of the price gap between Chinese PVC and alternative raw material sources;
- increased sensitivity to delivery conditions and shipping dates during the transition period until April 1, 2026;
Additional volatility in the market will occur in the second quarter of 2026, when the new rules will begin to work in full.
The view of Revada Plastic
Revada Plastic does not supply PVC resin and specializes in additives for PVC processing: PVC stabilizers, impact strength modifiers, PVC lubricants, titanium dioxide and other formulation components. Nevertheless, changes in the tax regime for PVC supplies from China directly affect the cost of our customers’ products and their recipe decisions.
So we:
- we monitor regulatory changes related to PVC imports in key areas for Russian processors;
- we take into account the possible increase in the cost of PVC when discussing with customers options for optimizing formulations and choosing additives;
- we help processors assess the impact of external factors on the cost of products and look for technical solutions, which increase the efficiency of PVC recycling.
Our goal is not to replace PVC suppliers, but to be a technological partner that helps PVC processors go through such changes with the most understandable and manageable consequences.
If it is important for you to understand how the cancellation of VAT refunds on exports to China may indirectly affect your business and what steps can be taken at the level of formulations and additives, Revada Plastic specialists are ready to discuss this in a working format.
