The Phnom Penh Post

VAT rules for non-resident operators in e-commerce

- Thou Vireak

THE Ministry of Economy and Finance has issued a prakas introducin­g new rules and procedures governing valueadded tax (VAT) on goods and services provided via ecommerce.

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 Covid19 crisis, the Cambodia Digital Economy and Social Policy

Framework 2021-2035 will be an integral part of the postCovid-19 economic recovery planning framework, covering the constructi­on of digital infrastruc­ture, attracting domestic and foreign investment, promoting new startups, increasing productivi­ty and promoting economic competitiv­eness,” Pornmoniro­th said.

 ?? HEAN RANGSEY ?? 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 The government has issued a prakas introducin­g new rules and procedures governing value-added tax (VAT) on goods and services provided via e-commerce.

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