Cambodia: VAT and e-commerce

Rules and procedures to implement the VAT sub-decree on e-commerce transactions

Rules and procedures to implement the VAT sub-decree on e-commerce transactions

Guidance issued by the Ministry of the Economy and Finance—MEF Prakas no. 542 (8 September 2021)—sets forth the value added tax (VAT) rules and procedures with regard to electronic commerce (e-commerce) transactions.


In April 2021, the Ministry of Economy and Finance issued Sub-Decree no. 65 SD.Prk as a framework regarding the VAT treatment of goods and services supplied via e-commerce. It was noted at that time that detailed procedures to implement the VAT rules on e-commerce transactions would be provided in future guidance (a Prakas). Read TaxNewsFlash

Implementing rules and procedures

MEF Prakas no. 542 is effective 8 September 2021. It sets forth the rules and procedures to implement the April 2021 VAT sub-decree on e-commerce transactions, including that:

  • The supply of digital goods or services or e-commerce activities by non-resident suppliers in Cambodia is subject to VAT at a rate of 10% unless the e-commerce supplies are non-taxable supplies.
  • Non-resident e-commerce suppliers must register for VAT purposes (i.e., under a simplified VAT registration) within 30 days of the date when one of the following is met:
    • Annual turnover from KHR250 million (approximately U.S. $62,500)
    • Expected turnover from KHR60 million (approximately U.S. $15,000) in any three consecutive months during a tax calendar

The non-resident e-commerce supplier will not be required to pay the annual business registration tax (referred to as a patent tax).

The rules depend, in part, on whether the e-commerce transaction is a business-to-business or a business-to-consumer transaction.

There are certain VAT invoicing requirements, such as a non-resident e-commerce supplier must issue a VAT invoice containing the following information:

  • The name, address, and VAT tax identification number (VAT-TIN) of the non-resident taxpayer
  • The name, address, and/or VAT-TIN of consumers
  • Invoice number and date of issuance of the invoice
  • Description of the digital goods or services
  • Taxable value and VAT amount or total prices including VAT

Read a September 2021 report [PDF 153 KB] prepared by the KPMG member firm in Cambodia


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