VAT for e-commerce in Cambodia.
Sub-decree no. 65 dated 8 April 2021 has been issued by Royal of Cambodian Government regarding the implementation of VAT for e-commerce.
A non-resident business entity, without a permanent establishment in Cambodia, that is providing e-commerce goods or services into Cambodia will need to register with the GDT if the estimated revenue threshold meets the requirements that are yet to be advised by the Ministry of Economy and Finance.
The list of e-commerce transactions and activities covered by the sub decree is extensive. It includes, amongst many specified services, electronic downloads of products (e.g. software), application hosting, provision of customer support from offshore, online shopping and web based broadcasting
The VAT treatment is different for B2C providers and B2B providers:
- B2C transaction: Non-resident taxpayers supply e-commerce goods or services to consumers in Cambodia (above the threshold which is yet to be advised) will be obliged to file a monthly VAT return and pay tax to tax administration by 20th of the following month. This will require the non-resident company to be registered in Cambodia
- B2B transaction: Resident taxpayers would have to account for the VAT output from the supply of e-commerce goods or services on behalf of non-resident taxpayers by reverse charge, then declare and pay tax to the GDT by following tax law and regulation. VAT input of resident taxpayers will be allowed as VAT input credit.
Acclime can assist your company in advising the steps that you need to take to comply with the new laws.
The date of implementation will be set when the Ministry of Economy and Finance issue further guidelines.