1. What is the scope of battery consumption tax levy?

A battery is a device that directly converts chemical energy, light energy, etc., into electrical energy. It generally consists of basic functional units composed of electrodes, electrolytes, containers, terminals, and usually separators, as well as battery packs assembled with one or more basic functional units. The scope includes: primary batteries, secondary batteries, fuel cells, solar cells, and other batteries.

2. What is the applicable tax rate for battery consumption tax?

The applicable tax rate for battery consumption tax is 4%.

3. At which links is battery consumption tax levied?

Battery consumption tax is levied at the links of production, entrusted processing, and import.

4. Who are the taxpayers subject to battery consumption tax?

The main taxpayers subject to battery consumption tax are enterprises and individuals engaged in the production, entrusted processing, or import of batteries.

5. What are the preferential policies for battery consumption tax?

Mercury-free primary batteries, nickel-metal hydride (Ni-MH) secondary batteries (also known as "hydrogen-nickel batteries" or "nickel-hydrogen batteries"), lithium primary batteries, lithium-ion secondary batteries, solar cells, fuel cells, and all-vanadium redox flow batteries are exempt from consumption tax.

6. How to enjoy the above battery consumption tax exemption policy?

Taxpayers producing or entrusting the processing of taxable consumer goods that meet the requirements of the above tax preferential policies shall hold product test reports issued by testing institutions recognized by quality and technical supervision departments at or above the provincial level, and submit the test reports of relevant products in accordance with the requirements of the competent tax authorities. A "testing institution recognized by quality and technical supervision departments at or above the provincial level" refers to an institution that holds a valid Qualification Certification for Metrological Accreditation (using the CMA logo) issued in accordance with the law by the Certification and Accreditation Administration of the People's Republic of China (CNCA) or provincial quality and technical supervision departments, and whose attached table of the Qualification Certification for Metrological Accreditation includes the corresponding battery testing items.

7. What materials should taxpayers retain for inspection when producing or entrusting the processing of tax-exempt batteries?

Taxpayers producing or entrusting the processing of tax-exempt batteries shall retain relevant certification materials for inspection. The main materials to be retained include:(1) Product test reports issued by testing institutions recognized by quality and technical supervision departments at or above the provincial level.(2) Taxpayers may provide test reports by product category, but shall submit a detailed list of such products together with the test reports. The product name, specification, and model in the detailed list shall be consistent with those in accounting records and sales invoices.

Policy Basis

• Notice of the Ministry of Finance and the State Taxation Administration on Levying Consumption Tax on Batteries and Coatings (Caishui〔2015〕No.16)
• Announcement of the State Taxation Administration on Issues Concerning the Administration of Consumption Tax Levying on Batteries and Coatings (State Taxation Administration Announcement 2015 No.5)
• Announcement of the State Taxation Administration on Clarifying Relevant Matters Concerning the Administration of Consumption Tax Levying on Batteries and Coatings (State Taxation Administration Announcement 2015 No.95)