The General Department of Taxation
("GDT") issued Notification no. 776 GDT
on the 17th of January 2022 ("Notification
776") which delays the implementation of Prakas 542
MEF.P on the Rules and Procedure for the Implementation of VAT on
E-Commerce ("Prakas 542") to 31
March 2022.
Previously Instruction 20522 issued by the GDT on the 8th of
December 2021 ("Instruction 20522") had
postponed the implementation of Prakas 542 to 31 December
2021.
What this delay means is that non-resident e-commerce providers who
meet the sales threshold requirements to register under the
simplified VAT system in Cambodia will need to do so before 1 April
2022. For those Cambodian self-assessment taxpayers that transact
with non-resident e-commerce providers (B2B transaction) the VAT
reverse charge obligation will only apply from 1 April 2022 meaning
that the first VAT reverse charge declaration and payment would be
due to be submitted on the 20th of May 2022 for manual returns or
the 25th of May 2022 for e-filing.
The reason given for the delay in the implementation of Prakas 542
was to allow taxpayers, both resident and non-resident, more time
to understand their respective obligations under this new regime
from 1 April 2022 onwards. What isn't clear is whether the
registration requirement for non-resident e-commerce providers to
complete the simplified VAT registration before 1 April 2022
applies to those providers that have Cambodia sales of USD15k or
more in the first three (3) months of 2022 or whether it also
includes those providers who had USD62.5k of Cambodia sales in the
2021 calendar year as was previously stated in Instruction
20552.
This is a welcome decision and will allow more time for
implementing issues to be resolved with respect to the
registration, declaration and invoicing process. To find out more
about this update and the new VAT e-commerce regulations please
note that we will be holding a webinar on the afternoon of the 18th
of January 2022 with our distinguished guest speaker His Excellency
Dr. Eng Ratana the Director of the Large Taxpayer Department of the
GDT. Please click this link to register. To locate our
earlier update on this topic which also provides further details on
the registration process and VAT reverse charge please click
here.
For assistance with the VAT registration process or with advice as
to how these new regulations will apply to you in practice, please
reach out to the author or your usual DFDL advisor.
Tax services required to be undertaken by a licensed tax agent in Cambodia are provided by Mekong Tax Services Co., Ltd, a member of DFDL and licensed as a Cambodian tax agent under license number - TA201701018.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.