Create a compliant invoice in Hong Kong: A Step-by-Step Guide for Businesses

Kristina Coluccia
Apr 3
3 min read

Issuing professional and compliant invoices is an essential part of doing business in Hong Kong. Whether you’re a freelancer, small business owner, or multinational entity, creating clear and accurate invoices not only helps maintain financial transparency but also ensures compliance with local tax and recordkeeping requirements.

This guide explains what should be included in a Hong Kong invoice, how to format it correctly, and best practices to streamline your billing process.

Understanding the Role of Invoices in Hong Kong

While Hong Kong does not impose value-added tax (VAT) or goods and services tax (GST), businesses are still expected to issue invoices as part of good accounting practice. Invoices serve as formal records of commercial transactions and are required for:

Auditing and accounting purposes
Profit tax filings with the Inland Revenue Department (IRD)
Proof of income and expenses
Payment follow-ups and dispute resolution

Properly issued invoices also help build trust with clients and reflect a company’s professionalism.

What to Include in a Hong Kong Invoice

There is no standardised invoice template mandated by the Hong Kong government. However, to ensure clarity and compliance, your invoice should include the following key elements:

1. Invoice Header Clearly state the word “INVOICE” at the top of the document. This distinguishes it from other financial or delivery documents.

2. Invoice Number Assign a unique, sequential invoice number for each invoice issued. This is important for internal control and audit trail purposes.

3. Date of Issue Include the date the invoice is created. This also serves as the official record for accounting periods.

4. Seller’s Information List your business name, registered address in Hong Kong, business registration number (if applicable), and contact details.

5. Buyer’s Information Include the customer’s name or company name, address, and contact details. For B2B invoices, also include the buyer’s company registration number if available.

6. Description of Goods or Services Provide a detailed description of the goods or services provided. Each line item should specify quantity, unit price, and total amount.

7. Invoice Amount and Currency State the total amount due, including currency (e.g., HKD, USD, RMB). If you work with clients overseas, ensure currency and FX terms are agreed in advance.

8. Payment Terms Indicate payment terms such as “Net 30”, “Due Upon Receipt”, or a specific due date. You may also include bank details, accepted payment methods, and late payment penalties if applicable.

9. Additional Notes (Optional) Use this section for personalised messages, thank-you notes, or tax disclaimers if needed. If your business qualifies for offshore income, or operates cross-border, clarifying the tax treatment of the transaction can be useful.

Tips for Creating Invoices Efficiently

Use Invoicing Software Platforms like Xero, QuickBooks, Wave, or local Hong Kong software providers help you automate recurring invoices, track payments, and integrate with accounting systems.

Maintain Consistent Branding Include your company logo, consistent font, and layout. A professional invoice reinforces your brand and makes it easier for clients to process.

Record Every Invoice Keep both digital and physical copies of all invoices issued and received. Under Hong Kong law, financial records must be retained for at least seven years.

Issue Timely Invoices Prompt invoicing leads to faster payments. Set up a workflow to issue invoices immediately after delivery of goods or completion of services.

Monitor Receivables Regularly follow up on unpaid invoices and maintain a clear aging report. This will help with cash flow forecasting and financial planning.

Are Invoices Subject to Tax in Hong Kong?

Hong Kong does not apply sales tax or VAT to invoices. However, the IRD may review invoices as part of your Profits Tax Return (PTR) to verify revenue and deductible expenses. Therefore, it is important that invoices reflect actual business activities and are consistent with your accounting records.

If your company earns income from outside Hong Kong, and you're filing for offshore profits tax exemption, your invoices will also serve as supporting evidence to demonstrate the source of your income.

How Woodburn Accountants & Advisors Can Help

At Woodburn Accountants & Advisors, we help startups, SMEs, and international businesses navigate financial and compliance requirements in Hong Kong. From setting up invoice templates that meet local standards to integrating your invoicing into accounting, tax, and audit-ready systems, we ensure your business maintains accurate, professional records.

Woodburn Accountants & Advisors is one of China and Hong Kong’s most trusted business setup advisory firms.

Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.