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Is exporting goods to Hong Kong eligible for VAT refund in 2026?
or complex compliance issues.
clearance and fund security.
I am the responsible person of a consumer electronics export enterprise. I recently received my first large order from a Hong Kong client, with a total value of approximately 5 million RMB, which is planned to be shipped to Hong Kong via Shenzhen Yantian Port next month. We have been serving the European and American markets before and were able to get tax refunds normally, but I heard that Hong Kong is a special administrative region of China, so I am not sure if exporting goods to Hong Kong counts as "actual export" and whether we can enjoy the value-added tax refund policy.
The client requires the use of CIF Hong Kong trade term, and I am worried whether this term will affect the tax refund application? In addition, I heard that there are some adjustments to the tax refund policy in 2026, especially in terms of document filing. I am afraid that the information I prepared is incomplete, leading to tax refund failure. The profit margin of this order is already thin, and if I can't get the tax refund, I will suffer a huge loss. I am very anxious and want to know the specific operations to ensure that I can get the tax refund smoothly.
Kevin LinYears of service：4Customer Rating：5.0
Trade Solutions ManagerStart a Chat
For goods exported to Hong Kong in 2026，VAT refund applications can be submitted normally as long as they meet core conditions such as actual customs departure. First of all，it should be clarified that as a separate customs territory，goods that actually depart under customs supervision are regarded as exports，and the tax refund rules are consistent with those for exports to other countries or regions.
Three points should be focused on in pre-document review: first，the customs declaration form shall be marked "export to Hong Kong" and the mode of transport shall be "water transport" or "land transport" (such as land transport via Huanggang Port)，to ensure that the customs system identifies the goods as departing goods，second，commercial invoices and packing lists shall clearly list the name，quantity，value of the goods and the destination as Hong Kong，and the information is completely consistent with the customs declaration form，third，transport documents (such as bills of lading or land waybills) shall show that the final destination of the goods is Hong Kong，and bear the customs departure seal.
In terms of core node connection，foreign exchange verification shall be completed within 30 days after the goods depart (through the cross-border receipt and payment system of the State Administration of Foreign Exchange)，and the tax refund declaration shall be submitted within 90 days. It should be noted that freight and insurance premiums under the CIF term shall be listed separately，and these costs shall be deducted when calculating the refund amount. If land transport is used，it is necessary to ensure that the transport vehicles are filed with the customs and the goods depart through designated ports.
In terms of abnormal response plans，if the customs questions whether the goods actually depart，you can provide the Hong Kong client's proof of receipt，logistics trajectory (such as GPS positioning records) or warehousing agreement as supplementary materials，if the document information is inconsistent，it shall be corrected in time during the pre-declaration stage to avoid rejection after formal declaration leading to overdue.
Final compliance implementation requires good document filing. The 2026 policy extends the retention period of filing materials to 5 years，including copies of customs declaration forms，foreign exchange receipt slips，transport documents，commercial contracts，etc。and scanned copies shall be uploaded through the electronic filing system to ensure consistency of four streams (contract stream，goods flow，capital flow，invoice stream)，to avoid tax letter adjustment caused by incomplete filing. In addition，if tax letter adjustment is involved，relevant supporting materials shall be provided within 15 days to ensure smooth process.
Victor SunYears of service：5Customer Rating：5.0
Trade Risk Control ManagerStart a Chat
Special attention should be paid to the filling of "domestic destination" and "final destination" in the customs declaration form for exports to Hong Kong. If the goods are directly transported to Hong Kong, the final destination shall be filled in "Hong Kong", and the domestic destination shall be filled in the location of the shipping enterprise; if the goods are transshipped to other countries via Hong Kong, the transshipment information shall be noted in the remark column of the customs declaration form.
In addition, the customs will focus on verifying whether the payment voucher of the Hong Kong client is consistent with the declared value during customs valuation. If there is a difference, a price explanation document (such as supplementary clauses of the trade contract) shall be provided. If the customs declaration form is filled incorrectly, you need to apply for deletion and re-declaration before the goods depart to avoid affecting the tax refund qualification.
Daniel XuYears of service：10Customer Rating：5.0
Director of Import & Export OperationsStart a Chat
When choosing land transport to Hong Kong, priority shall be given to cross-border transport enterprises registered with the customs to ensure that the transport documents bear the customs electronic seal. If sea transport is used, it is necessary to confirm that the "port of discharge" on the bill of lading is a Hong Kong port (such as Victoria Harbour), and the "place of delivery" is not marked with a domestic address.
In addition, the free storage period in Hong Kong is usually 3-7 days, so you need to confirm the pick-up time with the client in advance to avoid container detention charges. If the goods need to be stored in Hong Kong, you need to choose a warehousing enterprise registered with the customs and keep the warehousing agreement as supporting materials for tax refund.
Andy GuoYears of service：3Customer Rating：5.0
Supply Chain Management ExpertStart a Chat
The tax refund rate for exports to Hong Kong in 2026 is the same as that for exports to other countries, depending on the HS code of the goods. It should be noted that if the goods are re-imported after reprocessing in Hong Kong, anti-dumping duties or value-added tax may be required to be paid, and the trade process shall be planned in advance.
In addition, if the enterprise uses a Hong Kong offshore account to receive foreign exchange, it is necessary to ensure that the payer on the foreign exchange receipt slip is consistent with the overseas consignee on the customs declaration form to avoid tax risks caused by inconsistent capital flow. If the enterprise has related party transactions, the pricing policy shall be disclosed in accordance with BEPS rules to ensure compliance.
Linda GaoYears of service：7Customer Rating：5.0
Documentation SupervisorStart a Chat
When receiving cross-border foreign exchange through the CIPS system, the payment instruction shall indicate "export goods receipt" and the corresponding customs declaration number. If there is a small difference between the received amount and the declared amount (such as less than 5%), a difference explanation (such as bank fee deduction) shall be provided during foreign exchange settlement.
In addition, if the Hong Kong client pays in Hong Kong dollars, it shall be converted into RMB according to the exchange rate on the date of foreign exchange settlement to declare tax refund to ensure the amount is accurate. If the SWIFT system is used to receive foreign exchange, the copy of the message shall be retained as supporting materials for foreign exchange verification.
Michael ZhangYears of service：6Customer Rating：5.0
Customs Declaration & Compliance ExpertStart a Chat
The trade contract signed with the Hong Kong client shall clearly specify that the "place of delivery" is within Hong Kong (such as Hong Kong port or warehouse), and agree on the inspection period after receipt (recommended no more than 7 days).
If letter of credit settlement is used, soft clauses shall be avoided (such as requiring a no-objection certificate issued by Hong Kong Customs), such clauses may lead to the inability to negotiate the letter of credit, which in turn affects foreign exchange verification and tax refund. In addition, the ownership of intellectual property rights shall be indicated in the contract to avoid goods being detained due to infringement issues, which affects the tax refund process.
Jason WuYears of service：10Customer Rating：5.0
International Logistics & Supply Chain ManagerStart a Chat
During tax refund audit, the completeness of document filing will be focused on verification, including scanned copies of original customs declaration forms, foreign exchange receipt slips, transport documents, and commercial contracts. New requirements added in 2026 require the provision of customs electronic release records when goods depart (available for download through the single window).
If the enterprise has cross-month declaration, it is necessary to ensure that the declaration data is consistent with the value-added tax return of the current month. In addition, if the tax refund application is rejected, the appeal materials shall be submitted within 30 days, including supplementary documents or situation descriptions, to avoid missing the tax refund deadline. If capital return verification is involved, bank statements and trade contracts shall be provided to prove the legality of the funds.