CAMBODIA – ECONOMY: Cambodia starts collecting VAT on e-commerce from April 1

CAMBODIA – ECONOMY: Cambodia starts collecting VAT on e-commerce from April 1
Written by on100dayloans

Kong Vibol Cambodia

The implementation of Value Added Tax (VAT) on e-commerce will start on April 1 after a three-month delay.

Speaking to Fresh News, Kong Vibol, Director General of the General Department of Taxation, confirmed the entry into force of the value added tax on e-commerce “. “Since April 1, until now, 16 international companies have registered the simplified VAT registration of the General Directorate of Taxation.”

According to Vibol, the 16 international companies include:

1-Meta Platforms Ireland Limited, 2-Silverlake Structured Services SDN.BHD, 3-Facebook Technologies Ireland Limited, 4-Huawei Services (Hong Kong) Co., Ltd, 5-Microsoft Regional Sales Pte Ltd, 6-Facebook Payment International Limited , 7-Booking com.BV, 8-Google Asia Pacifice Pte.Ltd, 9-Netflix Pte.Ltd, 10-Xsolla (USA), Inc, 11-ERNST & Young (Asia-Pacific) Services Limited, 12- Zoho Corporation Pte.Ltd, 13- TATA Consultancy Services Limited, 14- Siam Makro Public Company Limited, 15- Mastercard Asia/Pacific Pte Ltd and 16-TikTok Ptd Ltd.

On March 28, 2022, the General Department of Taxation issued a warning to non-resident taxpayers (not having their registered office in Cambodia) who supply digital goods or services electronically or in the course of any commercial activity. electronically, so that they pay the VAT.

In the event that the non-resident taxpayer does not register or complete the tax declaration and does not pay the value added tax to the tax authorities within the deadline, the law stipulates the penalties provided for by the tax laws and regulations.

The introduction of Value Added Tax (VAT) on e-commerce is not a new tax.

Value Added Tax (VAT) is a tax already levied on goods or services of all kinds in tax law, but in the past e-commerce was not yet legal, but in 2019 the law on commerce through the e-commerce system has been approved, so through this law there is a definition of e-commerce activities, to facilitate the VAT that has already been implemented on e-commerce. It is misunderstood that the government creates taxes but it is not because it is an existing tax.

This sub-decree on the implementation of value added tax on e-commerce covers foreign companies that do not have a permanent establishment (head office) in Cambodia.

Companies that do not have their head office in Cambodia but have customers in Cambodia are concerned. When a local customer purchases a digital service or production from a company that is not based in Cambodia, it is subject to 10% VAT.

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