Cambodia Cambodia

Goods

VAT Standard rate

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 fertilisers, plant seeds, animal medicine, animal food, animal species and agricultural machinery and tools

Threshold

Prakas of September 8, 2021, was published on the website of the tax inspectorate. According to which 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 bolts 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.

Registration procedure

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 35 x 45 mm 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).

Tax representative

There are no clear explanations yet on 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 entities that provide digital goods/services or engage 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 re-assessment 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 USD1,250) to 10.000.000 Khmer riel (approximately USD2,500) and/or to detention from 1 month to 1 year.

Digital services

VAT Standard rate

10%

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 land line through which the service is supplied to him

This list is not complete. Additional criteria can be used.

E-services list

“Digital services” – services that are provided via electronic systems. The exact list of e-services means by Cambodia tax legislation is not yet clear.

However, it is likely that such services will include:

  • Telecommunications
  • Audio, video, audiovisual content
  • E-learning
  • Data storage and processing
  • Electronic books
  • Cloud-based software and as-a-Service products (SaaS, PaaS, IaaS)

Registration procedure

The application for VAT registration can be completed in Khmer or English via the electronic form on the tax department’s web-site 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.