No. There is no Hong Kong VAT, no goods and services tax, and no general sales tax. A Hong Kong company does not register for consumption tax, does not add it to invoices, and does not file indirect tax returns. The shelf price in a Hong Kong shop is the price you pay.
Hong Kong does have a few narrow indirect taxes. Duty applies to four kinds of goods, stamp duty applies to property and share transfers, and there are a handful of specific levies.
The bigger point for exporters is this: no tax at home does not mean no tax abroad. A Hong Kong company selling to customers in the EU or the UK can still owe VAT there.
What Taxes Does Hong Kong Actually Have?
Hong Kong raises most of its tax revenue from three direct taxes on income and property, not from taxes on spending.
Tax | Who pays | Rate or basis |
|---|---|---|
Profits tax | Companies and businesses with Hong Kong-sourced profits | 8.25% on the first HK$2 million, 16.5% above, for corporations |
Salaries tax | Individuals with Hong Kong employment income | Progressive rates, or a standard rate if lower |
Property tax | Owners of Hong Kong property earning rent | 15% standard rate on net assessable value |
The profits tax rates come from the Inland Revenue Department. Our guide to the Hong Kong corporate tax rate shows how they work in practice.
There is no capital gains tax, no dividend withholding tax, and no inheritance tax.
Why Hong Kong Has No GST
The government did consider one. A goods and services tax was put forward for public consultation in 2006 as a way to widen the tax base. It was dropped after strong public opposition, and no Hong Kong GST has been proposed since.
Without a consumption tax, the government relies on other sources. Profits tax and salaries tax carry much of the load, together with stamp duties, land sales and premiums, and returns on the government's reserves. That mix is unusual, and it means public finances lean more heavily on property and business income than in most economies.
The low, simple tax system is a deliberate part of Hong Kong's position as a free port and trading hub. Goods move in and out without customs tariffs, apart from the few items covered below.
Could that change? Any government can introduce a new tax, so treat this as the current position rather than a promise. But a broad sales tax would be a major policy shift, and there is no active proposal as of October 2026.
Duties on Four Kinds of Goods
Hong Kong charges excise duty on four groups of dutiable commodities, administered by the Customs and Excise Department:
1. Liquor. Duty applies mainly to stronger spirits. Wine and lower-strength drinks have been largely free of duty since 2008.
2. Tobacco. Cigarettes, cigars and other tobacco products, charged per unit.
3. Hydrocarbon oil. Certain fuels, such as motor gasoline and diesel.
4. Methyl alcohol. Charged per unit quantity.
Importing, manufacturing or storing dutiable commodities also needs a license from Customs. If your company trades any of them, check the licensing and duty rules before the first shipment. For every other product, Hong Kong charges no import duty and no import VAT.
Trade Declarations Are Not a Tax
Exporters sometimes confuse one routine filing with a sales tax. Most goods imported into or exported from Hong Kong need an import or export declaration lodged with the Customs and Excise Department, usually within 14 days. A small declaration charge applies, based on the value of the goods.
This is a statistical and control filing, not a tax on the sale. It applies whether or not the goods are dutiable, and freight forwarders usually file it for you. Ask your forwarder to confirm it is included in their price.
Beyond that, a Hong Kong trading company has nothing indirect-tax related to register for. Business registration with the Inland Revenue Department is the only general registration every company needs.
How Hong Kong Compares With Its Neighbors
The absence of a consumption tax is unusual in the region.
Jurisdiction | Main consumption tax |
|---|---|
Hong Kong | None |
Singapore | GST at 9% |
Mainland China | VAT, standard rate 13% |
United Arab Emirates | VAT at 5% |
Japan | Consumption tax at 10% |
For a company buying and selling inside Hong Kong, that means prices are simpler and there is no tax cash-flow gap between paying input tax and reclaiming it. The trade-off is that a Hong Kong company cannot reclaim VAT or GST it pays in other countries through any Hong Kong system. If you buy services in the EU, for example, any refund has to come through that country's own procedure, if one is available.
The absence of a Hong Kong GST also has a branding side effect. Some foreign customers assume a company with no VAT number is unregistered. A short line on your website or invoice footer, such as "Hong Kong does not levy VAT or GST," prevents that question.
Stamp Duty and Other Specific Levies
Stamp duty is the closest thing Hong Kong has to a transaction tax. It applies to a few specific documents, not to everyday sales.
• Share transfers. Transfers of Hong Kong shares are charged stamp duty, currently 0.1% on each side, so 0.2% in total. This includes a sale of shares in a private Hong Kong company.
• Property. Purchases and leases of Hong Kong property are charged stamp duty on a separate scale.
Other narrow levies exist, such as a first registration tax on new vehicles, a hotel accommodation tax, and a departure tax on air passengers. None of them affects a typical trading, consulting or online business.
[In-content image: hong-kong-vat-gst-indirect-taxes.jpg. Alt text: Table of the few indirect taxes that apply in Hong Kong, including duties on four commodities and stamp duty]
Hong Kong VAT and Cross-Border Sellers
This is where Hong Kong companies get caught. Hong Kong charges no sales tax on your sales, but your customers' countries may.
Digital services to consumers. If a Hong Kong company sells software, apps, online courses or streaming to private customers in the EU or the UK, VAT is usually due in the customer's country. Non-EU sellers can register through the EU's One Stop Shop scheme to report it in one place. The UK has its own registration rules for overseas sellers of digital services.
Physical goods. When a Hong Kong company ships goods to consumers in Europe, import VAT applies at the border. For lower-value parcels, the EU's Import One Stop Shop lets the seller collect VAT at checkout instead of leaving the customer to pay on delivery.
Marketplaces. Large online marketplaces in the EU and UK often collect and pay VAT themselves on certain sales by overseas sellers, under what are called deemed supplier rules. That helps, but it covers only sales through that platform. Sales through your own website or a second channel remain your responsibility, so do not assume one marketplace has solved the whole problem.
Business customers. Sales to VAT-registered businesses are often handled by the customer under a reverse charge, so the Hong Kong seller usually does not register.
Other countries, such as Australia, Singapore and many others, apply similar rules to overseas sellers of digital services or low-value goods. The thresholds and procedures differ.
Our position is plain: if you sell to consumers abroad, map where your customers are in your first month of trading, not after your first tax notice from a foreign authority. Our guides to setting up a Hong Kong company for e-commerce and a Hong Kong company for SaaS cover the selling side in more depth.
What to Put on Your Invoices
A Hong Kong invoice is simpler than a European one, but it still needs to be right.
Do include: the company's full legal name, its business registration number, the customer's details, a clear description, the price and currency, and the date.
Do not include: a VAT or GST line, a tax rate, or any "tax number" that does not exist. Adding "VAT 0%" can confuse customers and their auditors.
If you are registered abroad: when a Hong Kong company registers for VAT in the EU or UK, invoices to customers in that country must follow that country's rules, including the foreign VAT number and rate.
Business customers in VAT countries sometimes ask for your VAT number. The correct answer is that a Hong Kong company has none because Hong Kong has no VAT. Your business registration certificate is the document that proves the company exists.
Common Mistakes With Indirect Tax
Three errors come up repeatedly with foreign-owned companies.
The first is assuming "no VAT in Hong Kong" covers sales abroad. It does not, and foreign tax authorities increasingly chase overseas digital sellers.
The second is printing a made-up tax number or a 0% VAT line on invoices to look official.
The third is forgetting stamp duty when shares in the company are sold or transferred between founders. The duty is small, but the transfer is not properly recorded until it is paid.
The fourth is pricing. Founders moving from a VAT country sometimes quote Hong Kong customers a "net plus VAT" price out of habit. Quote one all-in price instead, because there is nothing to add.
There is also a misunderstanding about cost. No Hong Kong sales tax does not mean no tax on the company. Profits tax still applies to Hong Kong-sourced profits, and the company still files a yearly profits tax return with audited accounts.
Hong Kong VAT in Short: What to Do Next
There is no VAT or GST to register for, collect or report here. Watch for duty if you trade alcohol, tobacco or fuel; stamp duty if shares change hands; and VAT in your customers' countries if you sell to consumers abroad.
If you are planning a new company, our guide on how to start a business in Hong Kong as a foreigner covers the full setup. LAINEXUS handles Hong Kong tax filings through our taxation service and sets up new companies through our Hong Kong company registration service.
Frequently Asked Questions
Do I need to charge VAT as a Hong Kong company?
Not in Hong Kong. Hong Kong has no VAT, GST or sales tax, so local and export sales carry no Hong Kong consumption tax. You may still need to charge VAT in another country if you sell digital services or goods to consumers there, under that country's own rules.
Are imports taxed in Hong Kong?
Generally no. Hong Kong is a free port with no customs tariffs and no import VAT. Duty applies only to four groups of goods: certain liquor, tobacco, hydrocarbon oil and methyl alcohol. Importers of those goods also need a license from the Customs and Excise Department before trading.
Does Hong Kong have a sales tax on online purchases?
No. Online and in-store purchases in Hong Kong carry no sales tax. Foreign online sellers do not charge Hong Kong consumption tax to Hong Kong customers either. A Hong Kong buyer may, however, see foreign VAT on purchases from countries that tax exports of digital services.
Is stamp duty the same as VAT?
No. Stamp duty is charged on specific documents, mainly transfers of Hong Kong shares and property transactions, not on sales of goods or services. Share transfers currently carry 0.2% in total, split between buyer and seller. Everyday business sales carry no stamp duty and no consumption tax.
Will Hong Kong introduce a GST in the future?
There is no active proposal as of October 2026. A goods and services tax was consulted on in 2006 and dropped after public opposition. Any government can introduce new taxes, so check the annual Budget each February, but a broad sales tax would be a major change in policy.
This article is general information, not tax advice. Rules were checked on 8 October 2026 and can change, especially foreign VAT rules for cross-border sellers. Confirm your position with a qualified tax adviser in each country where you sell.