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Cambodia to implement e-commerce VAT in April

Cambodia will introduce VAT on online sales of goods and services from 1 April 2022. Cambodia originally scheduled the rollout of e-commerce VAT for 1 January.   

Under the new rules, any nonresident company that supplies online goods or services to customers in Cambodia must register for VAT if they exceed the threshold. Currently, the VAT threshold is set at annual turnover of KHR 250 million.

VAT for the digital economy – in Cambodia and beyond

The internet economy poses a challenge for tax authorities. After all, local retailers have to register for VAT. As more customers buy online from overseas companies, it seems fair that those businesses should register for VAT, too.

Moreover, without e-commerce VAT, authorities lose out on potential tax revenue.

It’s no wonder, therefore, that so many countries are updating their VAT rules. The new reality is that digital services and e-commerce are a central part of the economy. Recent social distancing and lockdown requirements only accelerated that trend. 

However, that should also be a wakeup call to anyone who operates a digital business or sells through an online platform. If you run an e-commerce business or supply digital services to customers around the world, you probably have VAT obligations in more than one country.  

E-commerce VAT made easy

Managing VAT compliance at scale may seem impossibly daunting. But it doesn’t have to be. There’s a reason ambitious online businesses prefer a single point of contact that manages all your VAT, simply, easily and effectively. 

Want to optimise your global e-commerce VAT compliance simple, easily and cost-effectively? It’s easier than you may think.

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