After the whole island of Hainan is closed, different tax arrangements will be implemented in the mainland and Hainan Free Trade Port. When goods enter Hainan Free Trade Port from the mainland, the VAT and consumption tax collected will be refunded.

It is understood that according to Article 27 of the Hainan Free Trade Port Law, when the whole island is closed, the VAT, consumption tax, vehicle purchase tax, urban maintenance and construction tax, and education fee surcharge will be simplified, and sales tax will be collected at the retail stage of goods and services; after the whole island is closed, the tax system will be further simplified. This is different from the tax arrangement in mainland China.

If goods enter Hainan Free Trade Port from the mainland, the VAT and consumption tax collected will not be refunded, and their prices will still contain these two taxes. These goods will be subject to consumption tax again in Hainan Free Trade Port, whether they are directly retailed or processed and then enter the retail stage, resulting in double taxation. Therefore, Article 29 of the Hainan Free Trade Port Law stipulates that when goods enter the Hainan Free Trade Port from the mainland, the value-added tax and consumption tax collected will be refunded in accordance with the relevant regulations of the State Council to avoid double taxation.