Does Hong Kong Have VAT or GST? What It Means for Your Invoices

No. Hong Kong has no VAT, GST or general sales tax, so a Hong Kong invoice needs no tax line and no tax number, though a company must still show its registered name and liability status and keep records for at least 7 years. Your customer's country may still tax the sale, although EU and UK business customers usually account for VAT themselves under the reverse charge. Digital sales to consumers can require registration abroad: in Singapore, once global turnover exceeds S$1 million and Singapore consumer sales exceed S$100,000.

Last reviewed: September 2026 · Sources: FSTB, IRD, Companies Registry, Customs and Excise Department, European Commission, HMRC (GOV.UK), IRAS, business.gov.au, State Taxation Administration

Hong Kong's position: no VAT, no GST, no sales tax

The Financial Services and the Treasury Bureau puts it plainly in its statement of prevailing tax policy: "There is no value-added or sales tax; no capital gains tax; no withholding tax on dividends and interest; and no estate duty in Hong Kong." The main direct taxes are profits tax, salaries tax and property tax.

Profits tax is charged on a territorial basis, so only profits arising in or derived from Hong Kong are taxed. Our explainer on the two-tiered profits tax rates sets out how that works for an SME. None of it appears on a sales invoice.

The narrow exceptions

Hong Kong does levy a few transaction-specific charges. None is a general consumption tax, and most SMEs will never put one on an invoice.

• Hotel Accommodation Tax. Resumed at 3% on accommodation charges from 1 January 2025 after being waived since 1 July 2008. It applies to hotels and guesthouses, which file quarterly returns with the IRD, as its Hotel Accommodation Tax page explains.
• Excise duties. The Customs and Excise Department collects duty on four types of dutiable commodities: liquors with an alcoholic strength above 30% by volume, tobacco, certain hydrocarbon oils and methyl alcohol. Imports are controlled through importer licences and removal permits.

If you are not a hotel, a guesthouse or a dealer in those commodities, your Hong Kong invoices carry no tax at all.

What a Hong Kong invoice still needs

No VAT does not mean no rules. Two requirements apply to almost every business.

Company name and liability status. Under the Companies (Disclosure of Company Name and Liability Status) Regulation (Cap. 622B), a company must state its registered name and liability status on invoices and receipts, as the Companies Registry confirms. The English or the Chinese registered name will do, spelled exactly as registered.

Records for 7 years. Section 51C of the Inland Revenue Ordinance requires sufficient records of income and expenditure to be kept for at least 7 years, and the IRD's record-keeping guidance lists invoices, receipts, vouchers and bank statements. The maximum penalty for failing to keep them is a fine of HK$100,000. Records may be electronic and in English or Chinese.

Beyond that, the fields on a Hong Kong invoice are commercial choices. Our FPS and PayMe invoicing guide includes a template.

What not to put on a Hong Kong invoice

• A "VAT 0%" or "GST exempt" line. There is no VAT or GST to be exempt from. The line suggests you are registered somewhere you are not, and overseas customers may ask for a registration number you do not have.
• An invented "tax ID". Hong Kong issues no VAT or sales-tax number. The Business Registration number is the identifier customers expect.
• "Tax invoice" as the title. The term has a legal meaning in GST and VAT countries. Use "Invoice".

Selling to customers outside Hong Kong

The absence of VAT at home does not follow the sale abroad. Consumption taxes are generally charged where the customer is, so the question becomes whether the customer's country expects you, or the customer, to account for its tax. Two distinctions decide most cases: whether the customer is a business (B2B) or a consumer (B2C), and whether you sell goods or services.

This table is a map, not advice. Rules on digital services, marketplaces and low-value goods change often, and definitions of "digital" or "remote" services differ by country.

European Union

For B2B services, the EU's general rule is that the business customer accounts for the VAT in its own country through the reverse charge, as the EU's Your Europe guide to cross-border VAT explains. Your invoice shows the net price; the customer self-assesses.

For telecommunications, broadcasting and electronic services sold to consumers, VAT is due in the consumer's Member State. The EUR 10,000 EU-wide threshold applies only to businesses established in the EU, so a Hong Kong seller owes VAT from the first sale. The EU One Stop Shop portal describes the non-Union scheme, which lets a business not established in the EU register in one Member State and file a single quarterly return for all its EU consumer sales.

United Kingdom

HMRC's guidance on VAT for digital services to private consumers says that if your supplies are liable to UK VAT, you must register "if you are based outside the UK". If a business customer does not give you a VAT number, treat the sale as one to a consumer. Sales made through a platform or marketplace are generally the platform's responsibility instead.

Singapore

The IRAS guidance for overseas businesses/gst-and-digital-economy/overseas-businesses) requires overseas vendor registration when both tests are met: annual global turnover above S$1 million, and B2C supplies of remote services or low-value goods to Singapore above S$100,000. Registered overseas vendors use a simplified pay-only regime.

Australia

The general rule on business.gov.au is that a business must register for GST once its GST turnover reaches A$75,000, within 21 days. Non-residents face specific rules on what counts towards that figure, so check with an Australian adviser before relying on it.

Selling to Mainland China: the fapiao question

A fapiao is the official Mainland tax invoice, issued through the Mainland tax system by a Mainland taxpayer. A Hong Kong company cannot issue one, and a Hong Kong invoice is not a fapiao, however it is formatted.

Mainland VAT is now governed by the VAT Law, which took effect on 1 January 2026 together with implementing regulations, as the State Taxation Administration announced. When a Mainland business buys taxable services from an overseas seller, the Mainland buyer is generally the withholding agent for the VAT. The practical effect is that the buyer may pay you less than the invoice, or ask you to gross up, unless the contract says who bears the tax.

Before quoting a Mainland customer, ask their finance team three things: whether they will withhold VAT or other taxes, what documents they need from you to pay a foreign supplier, and whether the price should be net or gross of withholding. Put the answer in the contract.

Worked example: one studio, three customers

A Hong Kong design studio, with global turnover equivalent to S$2 million a year, has three new customers. The figures are illustrative.

1. A German company buys branding work for EUR 8,000. This is B2B. The studio invoices EUR 8,000 with no VAT line. Many EU customers ask to see their own VAT number on the invoice so that they can apply the reverse charge; adding it does no harm.
2. The studio sells design templates directly to Singapore consumers from its own website. Its Singapore B2C sales are forecast at S$60,000 this year and S$130,000 next year. Test: global turnover S$2,000,000 is above S$1,000,000, so the first condition is met. This year, S$60,000 is below S$100,000, so no registration is needed. Next year, S$130,000 exceeds S$100,000 by S$30,000, so registration would be required.
3. A Shenzhen company buys consultancy services for HK$100,000. The studio issues an ordinary Hong Kong invoice, not a fapiao. Before signing, it agrees in writing whether HK$100,000 is the amount it receives or the amount before any Mainland withholding.

Common mistakes

• Adding "VAT 0%" to look international. It invites questions you cannot answer and can confuse a customer's tax reporting.
• Assuming no VAT at home means no VAT anywhere. Digital sales to consumers in the EU, UK and Singapore can create registration duties abroad.
• Treating every overseas buyer as a business. Without a VAT or GST number, many systems treat the customer as a consumer.
• Leaving Mainland withholding out of the contract. The difference between net and gross can be the whole margin on a small job.
• Throwing away overseas paperwork. Keep foreign VAT returns, customer VAT numbers and evidence of customer location alongside the 7-year Hong Kong records. Our SME compliance calendar helps you track the deadlines at home.

Frequently asked questions

Does Hong Kong have VAT or GST?

No. The Financial Services and the Treasury Bureau states that Hong Kong has no value-added or sales tax. Profits tax, salaries tax and property tax are the main direct taxes, and none is charged on an invoice.

Do Hong Kong companies need a tax number on invoices?

No. Hong Kong issues no VAT or sales-tax number. Show your registered company name and liability status, which Cap. 622B requires; most businesses also show their Business Registration number.

Can a Hong Kong company issue a fapiao?

No. A fapiao is an official Mainland tax invoice issued through the Mainland tax system by a Mainland taxpayer. A Hong Kong company issues an ordinary commercial invoice, and the Mainland buyer handles any Mainland tax, often by withholding.

Do I charge VAT to EU customers from Hong Kong?

For B2B services, generally not: the EU business customer accounts for VAT under the reverse charge. For electronic services to EU consumers, VAT is due from the first sale, and you can register for the non-Union One Stop Shop in one Member State to report it.

How long must a Hong Kong business keep invoices?

At least 7 years, under section 51C of the Inland Revenue Ordinance. The rule covers invoices issued and received, receipts, vouchers and bank statements, and the maximum fine for non-compliance is HK$100,000.

Key takeaways

• Hong Kong has no VAT, GST or sales tax; a Hong Kong invoice carries no tax line and no tax number.
• A company must still show its registered name and liability status on invoices, and keep records for at least 7 years.
• EU and UK business customers generally self-account for VAT on services under the reverse charge.
• B2C digital sales abroad can require registration: from the first sale in the EU and UK, and above S$1 million global and S$100,000 local sales in Singapore.
• A Hong Kong company cannot issue a fapiao; agree Mainland withholding in the contract before you quote.

Clean records make overseas questions easier to answer. JetFlow keeps every invoice, receipt and bank statement in one ledger, and reads supplier documents into the books through hot-folder OCR. If you are comparing systems, see our guide to accounting software for Hong Kong SMEs, or start free with JetFlow.

This article is general information, not tax advice. Overseas VAT and GST rules change often; confirm your position with an adviser in the customer's country before you sell.