Against China’s policy backdrop of promoting green and low-carbon development,and accelerating the upgrade of new energy storage and new energy industries,battery products meeting environmental and technical standards are exempt from China’s consumption tax.

To lawfully benefit from this policy incentive,enterprises must accurately understand the exemption scope, qualification requirements,and especially the CMA-certified test report as the core supporting document for tax exemption applications.

I. Which Batteries Qualify for Consumption Tax Exemption?

According to Caishui [2015] No.16(Notice on Levying Consumption Tax on Batteries and Coatings)issued by the Ministry of Finance and the State Taxation Administration,7 categories of batteries are exempt from consumption tax:

1. Mercury-free primary batteries – primary batteries with mercury content within limits
2. Nickel-metal hydride (Ni-MH) batteries – widely used in energy storage and hybrid equipment
3. Lithium primary batteries – including Li-MnO₂, Li-SOCl₂, and other primary lithium batteries
4. Lithium-ion batteries – for power, energy storage, and consumer electronics
5. Solar cells – photovoltaic modules for solar power generation
6. Fuel cells – hydrogen fuel cells and other electrochemical power generators
7. Vanadium redox flow batteries – mainstream flow batteries for large-scale grid energy storage

II. Core Document: CMA Test Report Is Mandatory for Tax Exemption

To claim battery tax exemption,a test report issued by a third-party laboratory with CMA accreditation is legally required for tax authority review.

Mandatory Policy Requirement

Tax authorities explicitly stipulate that applications must submit a test report bearing the official CMA stamp.No valid report means no tax exemption.

Laboratory Qualification Requirement

The testing body must hold a valid CMA (China Metrology Accreditation) certificatewith coverage for the corresponding battery test items,making the report legally enforceable.

Tax Authority Recognition

A CMA report serves as authoritative proof that the product meets tax-exempt technical criteria,and can be directly used for exemption filing, declaration, and inspection.

III. Standard Process to Obtain a Tax-Exempt Test Report

1. Product Self-Inspection & Document PreparationConfirm the product falls under the tax-exempt battery category;prepare specifications, technical parameters, model list, process description, etc.

2. Select a Qualified Testing InstitutionChoose a third-party laboratory with valid CMA accreditation for battery testingto ensure the report is acceptable for tax declaration.

3. Sample Submission & Testing CommissionProvide qualified samples as required, sign a testing contract,and confirm test items, standards, and lead time.

4. Receive a Compliant CMA ReportThe final report must include the CMA stamp,with complete product information, test results, and formal compliance conclusions.

5. Tax Filing & Consumption Tax Exemption DeclarationComplete filing and declaration with the competent tax authorityusing the CMA report, product list, invoices, and financial documents.

IV. Compliance Key Points & Risk Prevention

• Strictly Prohibit Fraudulent ReportsForging or altering CMA reports constitutes tax evasion,subject to fines, late payment fees, and even criminal liability.

• Verify Laboratory QualificationsAlways confirm the testing body holds a valid CMA certificatewith authorized battery testing scope.

• Keep Complete RecordsRetain full sets of documents for future inspection:test reports, contracts, invoices, production records, sales vouchers, etc.

• Ensure Truthful & Consistent InformationDeclared product lists, models, and parameters must match production, sales, and financial data.