Logo of Phnom Penh Post newspaper Phnom Penh Post - VAT rules for non-resident operators in e-commerce

VAT rules for non-resident operators in e-commerce

Content image - Phnom Penh Post
The government has issued a prakas introducing new rules and procedures governing value-added tax (VAT) on goods and services provided via e-commerce. Hean Rangsey

VAT rules for non-resident operators in e-commerce

The Ministry of Economy and Finance has issued a prakas introducing new rules and procedures governing value-added tax (VAT) on goods and services provided via e-commerce.

The new legislation, dated September 8, primarily targets e-commerce transactions between Cambodian taxpaying consumers and sellers active in Cambodian territory who are non-residents and do not have permanent establishment in the Kingdom.

The taxable value of a supply is the transaction value, the prakas says, adding that any form of compensation arrangement other than cash shall be included in the value, based on market rates.

If the taxable value of the digital goods or services supplied does not represent the actual value, the tax administration may determine one, which shall be deemed valid until there is evidence accepted by the tax administration, the document adds.

The prakas complements Sub-Decree No 65, dated April 8, which regulates VAT on electronically supplied goods and services, and is designed in accordance with the E-Commerce Law, which came into force on November 2019.

The government recently launched a 15-year policy framework for the Kingdom’s evolving digital socioeconomic environment to pave the way for a thriving digital economy, as a new engine of economic growth.

Cited in an associated document, Minister of Economy and Finance Aun Pornmoniroth said the Cambodia Digital Economy and Social Policy Framework 2021-2035 sets out a vision of “building a vibrant digital economy and society to foster new economic growth and promote social welfare based on the normalisation of the ‘new normal’”.

He emphasised that the vision must be achieved by 2035, in accordance with three principles – “building a digital foundation”, “digital capture” and “digital transformation”.

“In the context of the Covid-19 crisis, the Cambodia Digital Economy and Social Policy Framework 2021-2035 will be an integral part of the post-Covid-19 economic recovery planning framework, covering the construction of digital infrastructure, attracting domestic and foreign investment, promoting new start-ups, increasing productivity and promoting economic competitiveness,” Pornmoniroth said.

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • Hun Sen: Manet to be candidate for prime minister

    Prime Minister Hun Sen has reaffirmed that his oldest son Hun Manet will be his successor as Prime Minister if he is elected. Speaking during the inauguration of a new sewage treatment facility in Preah Sihanouk province on December 2, Hun Sen said Manet will be

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied