The government has issued a sub-decree on the implementation of value-added tax (VAT) on e-commerce activities in Cambodia.

The sub-decree, signed by Prime Minister Hun Sen on April 8, defines special conditions and mechanisms for levying VAT on digital goods and services provided by non-resident taxpayers who do no have a permanent office in Cambodia to ensure the effectiveness of tax collection in accordance with Article 75 of the taxation law.

This applies to the provision of digital goods or services electronically by non-resident suppliers from abroad to Cambodia.

E-commerce activities within Cambodia must comply with existing VAT regulations.

The sub-decree states that tax registration for non-resident taxpayers shall be made according to the classification of taxpayers under the self-declared regime as set in a prakas by the Ministry of Economy and Finance. This registration applies only for VAT purposes.

Non-resident taxpayers who receive a supply of digital goods or services or any e-commerce transactions for consumers in Cambodia are obliged to file tax returns and pay VAT to the excise department before the 20th of the following month.

Non-resident taxpayers who receive a supply of digital goods or services or any e-commerce transactions from another non-resident taxpayer must collect tax through the Reverse Charge and tax returns and pay VAT to the excise department in accordance with taxation laws and regulations.

Resident and non-resident taxpayers who do not fulfill their tax obligations in contravene of this sub-decree shall be punished in accordance with the taxation law.

Source: https://www.phnompenhpost.com/business/sub-decree-defines-vat-provisions