In this course · 1 of 9
Course 3
Profits tax for online sellers
9 lessons · 9 min
- 1Is there VAT or sales tax on online sales in Hong Kong?
- 2What profits tax rates apply to an online store in Hong Kong?
- 3How and when does an online seller file profits tax returns?
- 4Can a new online store carry forward its trading losses?
- 5Does server location decide whether e-commerce profits are taxed in Hong Kong?
- 6What evidence does the IRD want for an offshore profits claim for an online store in Hong Kong?
- 7Can a Hong Kong trading company claim offshore profits if it buys in mainland China?
- 8What penalties apply if an online seller files an incorrect or late profits tax return?
- 9How can a Hong Kong company get a tax residency certificate for Amazon or other platforms?
The short answer
No. As of 2026, Hong Kong has no VAT, GST or general sales tax, so a Hong Kong online seller does not charge it on local sales. Profits tax applies to business profits instead. Customers in other countries may be subject to their own import taxes.
Hong Kong's tax system is territorial and narrow. The main taxes are profits tax, salaries tax and property tax. There is no value added tax, goods and services tax or retail sales tax, so prices shown to Hong Kong customers do not include one and a seller does not register for or file such a return.
What this means for an online store:
- You do not add a sales tax line to Hong Kong orders.
- Tax is on the profit of the business, after deductible expenses, under profits tax.
- Some goods carry a specific duty (see the separate answer on dutiable goods): liquor above 30% alcohol, tobacco, certain hydrocarbon oil and methyl alcohol are dutiable commodities.
This does not remove the obligations of other countries. When you ship goods to customers abroad, the destination country may charge VAT, sales tax or customs duty on the sale or on import, and in some places the seller must register and collect it. See the separate answers on the EU, the UK and the US.
Legal basis and sources
The law
- Inland Revenue Ordinance (Cap. 112), s.14
Official sources
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Was this lesson useful?
Upvote it and it moves up for the next reader who asks.
