Cambodia: Delayed implementation of VAT on e-commerce transactions; VAT state-charge for “basic daily food”

Guidance to delay the implementation of the value added tax on electronic commerce transactions until 31 March 2022

Guidance to delay implementation of VAT tax on e-commerce transactions until 31 March 2022

The tax administration has issued guidance (Notification no. 776 GDT, 17 January 2022) to delay the implementation of the value added tax (VAT) on electronic commerce (e-commerce) transactions until 31 March 2022.

The delay is to give taxpayers enough time to prepare and implement the new VAT on e-commerce transactions smoothly and effectively starting from 1 April 2022. Accordingly, the first taxable month for taxpayers to report e-commerce transactions will cover April 2022 and the VAT on the e-commerce return/declaration is due by May 2022.

However, non-resident taxpayers providing e-commerce supplies in Cambodia must complete their simplified VAT registration process prior to 1 April 2022. Failure to register and/or declare the tax returns and pay the VAT to the tax administration on time will be subject to penalties provided under the tax laws and regulations in effect. Read TaxNewsFlash

VAT state-charge for basic daily food

The Ministry of Economy and Finance issued guidance (Prakas no. 009 MEF.Prk, effective from 11 January 2022) to determine that VAT on certain “basic food” for the daily living of the people is allowed as a state-charge for a period of two years, from 1 January 2022 to 31 December 2023. Food supplied by restaurants is excluded.

Read a January 2022 report [PDF 363 KB] prepared by the KPMG member firm in Cambodia


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