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About
Goods
About
Goods
About
Digital services
About
Digital services
Goods
Digital services
Goods
Digital services
VAT Standard rate
The standard VAT rate in Cambodia in 2024 is 10%.Zero rate
- Intrastate supplies of paddy rice;
- Intrastate supplies of milled rice or milled rice production services by contractors to the rice exporters;
- Intrastate supplies of specific agricultural products, including all types of fertilizers, plant seeds, animal medicine, animal food, animal species, and agricultural machinery and tools.
VAT Standard rate
The standard VAT rate in Cambodia in 2024 is 10%.
VAT Standard rate
10%
VAT Reduced rate
-
Thresholds
$62,000
Threshold
Prakas of September 8, 2021, was published on the website of the tax inspectorate. According to this non-resident legal entities that provide digital goods/services or engage in electronic commerce to Cambodian customers and who expect to have sales of $15,000 by the end of the 2021 year must register within 30 days. Starting from 2022, the threshold for registration is 250 million Khmer riels per year (approximately 62.5 thousand US dollars).Deductible VAT
A Taxable Person is allowed to claim a VAT input credit on the supplies it receives from a Non-resident E-Supplier provided that the Taxable Person has paid the VAT reverse charge to the General Department of Taxation. Based on the law, a deductible is possible even if registration has not been carried out.VAT registration procedure in Cambodia
To register, you must send the following documents to the tax agency:- Application request for VAT numbers;
- Registration documents of a non-resident taxpayer. As a rule, such documents mean Certificate of incorporation and Tax certificate issued by the country of establishment;
- Valid identity documents of the owner or agent (identity card or passport);
- Two actual passport photos 35x45mm not older than 3 months of the director or agent;
- Details of an overseas company’s bank account issued or printed at the bank.
Tax representative
There are no clear explanations yet for the appointment of a tax agent for VAT registration in Cambodia.VAT returns filing and VAT payment date
The deadline for filing a tax return and paying VAT is the 20th day of the month following the reporting period. The tax period in Cambodia is one month.Penalty
If an overseas legal entity that provides digital goods/services or engages in electronic commerce to Cambodian fails to register for VAT, the tax agency can at its discretion register the foreign E-Supplier and issue a tax reassessment of the taxes that they believe have not been paid along with penalties and interest. Obstruction of the tax law includes failure to register with the tax department and an entity that obstructs the implementation of the tax law is liable to a fine from 5,000,000 Khmer riel (approximately $1,250) to 10,000,000 Khmer riel (approximately $2,500) and/or to detention from 1 month to 1 year.Threshold
Small suppliers are not obliged to register as VAT taxpayers. Starting from 2022 a small taxpayer is an entity that sells goods or services for an amount not exceeding 250 million Khmer in the previous 12 months.Pieces of evidence
- The following criteria are standard for determining the place of delivery of electronic services Customer’s address;
- The address to which the invoice is issued;
- Phone code (for Cambodia +855);
- Buyer’s Internet Protocol address;
- The location of the customer’s fixed landline through which the service is supplied to him.
E-services list
“Digital services” – services that are provided via electronic systems. The exact list of e-services meant by Cambodia’s tax legislation is not yet clear. However, it is likely that such services will include:- Telecommunications;
- Audio, video, and audiovisual content;
- E-learning;
- Data storage and processing;
- Electronic books;
- Cloud-based software and as-a-Service products (SaaS, PaaS, IaaS).
VAT registration procedure in Cambodia
The application for VAT registration can be completed in Khmer or English via the electronic form on the tax department’s website or via a physical submission to the tax authorities. To do this, you will need to provide a standard set of documents, including a passport, registration certificates, and an application for registration.VAT returns filing and VAT payment date
VAT declaration and payments must be sent and paid to the General. Department of Taxation by the 20th of the following month in which the VAT was charged on the invoice.
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