CAMBODIA: VAT Registration Again Extended for Non-Resident E-Commerce Firms

Non-resident e-commerce firms supplying Cambodia now have until 31 March 2022 to register for value-added tax (VAT). The General Department of Taxation (GDT) issued Notification No. 776 GDT on 17 January 2022 extending the deadline. The 10% e-commerce VAT will be implemented from 1 April 2022, as laid out in the recent law Prakas 542 MEF.P on the Rules and Procedure for the Implementation of VAT on E-Commerce. 

The new tax applies to all non-resident firms selling to Cambodia through business-to-consumer (B2C) e-commerce. For business-to-business (B2B) e-commerce, the Cambodia-registered buyer is required to pay 10% VAT on goods through a reverse charge mechanism, regardless of whether the non-resident supplier is VAT registered. Taxes charged through this mechanism are considered input VAT credits, which can be deducted on VAT returns. B2B transactions unrelated to e-commerce are exempted, such as transactions between parent companies and their Cambodian subsidiaries; as well as non-resident taxpayers under the annual revenue threshold of KHR250 million (US$61,424). 

E-commerce is defined as goods, property and intangible goods bought online, including online shopping, hosting, advertising, data retrieval, software supply, and digital content consumption.