English
Cambodia: GDT gears up to block unregistered companies’ electronic transactions
The General Department of Taxation of the Ministry of Economy and Finance has sought cooperation from 49 Internet companies in Cambodia to block electronic transactions should those enterprises are not registered.
The announcement was made during a meeting with 49 internet service providers in Cambodia on the implementation of VAT on e-commerce transactions yesterday chaired by its GDT director-general Kong Vibol.
The online businesses in Cambodia are booming and a large number of online-based businesses are not registered and are fully tax obligated, Vibol said.
“Recently, online businesses and internet sectors have been booming and growing gradually, as some enterprises have registered their taxes and fulfilled their tax obligations. However, there is still a large number of enterprises that are not yet registered and aware of the tax obligations. So, strengthening the management of e-commerce activities is strengthening the level playing field and fiscal compliance for the sector,” he said.
The government has issued Sub-Decree No. 65 on the implementation of value-added tax on e-commerce, which applies to the supply of digital goods or digital services or any e-commerce activities carried out by non-resident suppliers coming to Cambodia, especially for e-commerce activities in the Kingdom, are subject to comply with the VAT provisions.
The General Department of Taxation intends to promote and strengthen the cooperation of enterprises as Internet Service Providers in the Kingdom to join the government in case the enterprises are not registered and fulfill their obligations.
“The General Department of Taxation welcomes all inputs and technical cooperation to improve the implementation of VAT on e-commerce transactions to ensure increased tax revenue collection is sustainable,” he said.
Vibol appreciated and hoped that the management and representatives of companies doing business as internet service providers in Cambodia will actively cooperate with the General Department of Taxation in the implementation.
The GDT has postponed the implementation of VAT collection for electronic transactions until March 31, 2022 to give taxpayers more time to find out more and be ready when implementation starts from April 1, 2022 onwards.
Source: https://www.khmertimeskh.com/501021382/gdt-gears-up-to-block-unregistered-companies-electronic-transactions/