On Jan 7th, China State Administration of Taxation published an official explanation to the consumption tax on batteries and coatings, answering the ambiguous parts of the previous notices.
According to the explanation, the grace period for lead storage batteries ended on Jan 1st and the tax rate is also 4%, the same with coatings which release more than 420g/L VOCs at worksites. Taxable activities include changing big packages to smaller ones, purchasing coatings and batteries and change their labels, even though there are no production processes.
Mercury-free primary batteries, nickel-metal hydrogen storage batteries (a.k.a. Ni-MH batteries, Ni-hydrogen storage batteries), lithium primary batteries, lithium ion storage batteries, solar batteries, fuel batteries and all-vanadium redox flow batteries are exempted from the consumption tax as well as coatings which release less than 420 g/L VOCs at worksites. To prove the batteries and coatings are qualified for the exemption, the product test reports issued by the quality supervision authorities above provincial level should be presented. The test reports should have China Metrology Accreditation (CMA) logos on them. Tax payers should provide other detailed information along with the test reports, such as the product name, specifications and invoices for sales.
