VAT Standard rate
The standard VAT rate in Cambodia in 2023 is 10%.
- 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.
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).
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.
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.
The fee for registration as a VAT payer is 400,000 Khmer riels (approximately $100), and if any information updates are required, the fee for such updates is 200,000 Khmer (approximately $50).
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.
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.