How vat / sales tax works in Hong Kong
Hong Kong has no value-added tax and no goods and services tax, so domestic sales, imports for consumption, and services carry no broad-based consumption levy.
Indirect taxation is narrow: excise duties on liquor, tobacco, hydrocarbon oils, and methyl alcohol, plus stamp duty on property, shares, and leases, do the work VAT performs elsewhere.
Businesses therefore file no VAT returns, charge no output tax, and claim no input credits, with pricing set on a tax-exclusive basis across the supply chain.
Tax rates at a glance
- VAT / GST
- 0%
- Sales tax
- 0%
- Excise duties
- Specific goods
- Stamp duty
- Varies
- Hotel accommodation tax
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersTradersFund managersCross-border shoppers
Watch out for
- Zero VAT does not mean zero indirect cost: stamp duty on share transfers and property deals, plus excises on dutiable goods, still shape transaction pricing.
- Importing from Hong Kong into VAT jurisdictions flips the picture instantly, with destination VAT, customs duty, and OSS or IOSS registration waiting at the border.
- Past proposals for a Hong Kong GST have never progressed, but policy debate resurfaces periodically, so long-horizon models should note the political tail risk.
- Profits-tax source rules still decide whether trading margins are taxable, which matters far more than consumption tax for Hong Kong businesses.
Frequently asked questions
Does Hong Kong have VAT or GST?
No. Hong Kong levies no VAT and no GST in 2026, so domestic supplies carry a 0% consumption-tax headline with no registration or filing.
What indirect taxes does Hong Kong charge?
Narrow excises on liquor, tobacco, hydrocarbon oils, and methyl alcohol, plus stamp duty on property, share, and lease transactions. The hotel accommodation tax has been waived since 2008.
Do I charge VAT selling from Hong Kong to Europe?
Hong Kong-side, no. But the destination country's VAT and customs rules apply on arrival, so EU B2C sellers still need OSS, IOSS, or local registration planning.