Tax rate by region Cambodia

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Understanding SaaS Sales Tax in Cambodia: A Comprehensive Guide for Businesses

Cambodia implemented a value-added tax (VAT) system in 1999, signifying a move towards modernized tax administration and improved compliance. Businesses operating in Cambodia, including those offering Software as a Service (SaaS), must adhere to specific VAT regulations to ensure compliance. This guide delves into the intricacies of SaaS sales tax in Cambodia, providing valuable insights for businesses to navigate the complexities of this tax regime.

The standard VAT rate in Cambodiacurrently stands at 10.0%, applicable to SaaS and other digital services. It’s crucial to note that there are no reduced VAT rates or exemptions for digital goods and services. This implies that all SaaS providers must charge the standard VAT rate to their customers unless specifically exempted by law. Businesses must maintain meticulous records for a minimum of 10 years, encompassing all transactional and financial data relevant for tax purposes. While e-invoicing is not yet fully implemented in Cambodia, it’s highly recommended for streamlining compliance and ensuring data accuracy.

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Cambodia

Cambodia implemented a VAT system in 1999, focusing on modernizing tax administration and improving compliance.

Official government link: General Department of Taxation

10.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No specific reduced tax rates for digital goods and services

Exempted product categories

Digital goods and services are generally not exempt from VAT in Cambodia.

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Non-resident companies must register for VAT in Cambodia if they provide taxable digital goods and services to Cambodian consumers or businesses, with specific thresholds for annual turnover.

Online registration possible

Yes

Local representative needed

Yes

Registration procedure

To register for VAT in Cambodia, appoint a local tax representative and register with the General Department of Taxation (GDT). Complete and submit the VAT registration form along with the necessary documents. Upon approval, you will obtain a VAT certificate.

List of digital and electronic services liable for tax

Access to and download of software and applications, streaming services for music and video, online advertising services, digital content (e-books, music, video downloads), cloud services and online storage, online learning platforms, telecommunications services, audio, video, and audiovisual content, data storage and processing, electronic books, and cloud-based software and as-a-service products (SaaS, PaaS, IaaS).

Penalties

Penalties for non-compliance may include fines for late registration, delays in filing, and incorrect reporting. Specific amounts and rates can vary.

Registration threshold

KHR 250 million 

Filing interval

Monthly

Filing deadline

By the 20th of the month following the reporting period.

E-invoicing requirements

Not fully implemented

How-To Guides: Cambodia SaaS VAT

Step: 1 Threshold

Effective April 1, 2022, Cambodia requires non-resident vendors of digital services to customers (B2C and B2B) in Cambodia to register for VAT if their sales exceed KHR 250 million in a 12-month period. The concept of digital services is broader as generally understood as it also includes electronic access to professional advice.

 

In addition, while the obligation to register applies to both B2C and B2B sales, nonresidents are only required to collect VAT on B2C sales but report both B2C and B2B sales in their VAT returns.

Step: 2 Business Registration

Register for Simplified VAT with the General Department of Taxation (GDT), Ministry of Economy and Finance using the prescribed form (e.g., NR‑76) and supporting documents (overseas registration, ID, bank confirmation, etc.).

Step: 3 TIN/VAT Number

A Simplified VAT Registration/TIN is issued by the GDT upon successful registration, solely for VAT purposes (no permanent establishment required).

Step: 1 Standard VAT Rate

Standard VAT rate is 10% on digital goods/services.

Step: 2 VAT Formula

To calculate your tax amount, consider the following formula:

 

TaxAmount = NetPrice × 10%

 

Step: 3 Reverse Charge (B2B)

For B2B cross‑border digital services, the reverse charge mechanism applies: the Cambodian business customer accounts for VAT on behalf of the non‑resident supplier (i.e., self‑assesses output VAT and may claim input credit) regardless of supplier’s VAT registration status.

Step: 1 Selling B2C

Non‑resident supplier must charge/collect 10% VAT from Cambodian consumers (non‑VAT registered persons or businesses not providing VAT TIN/bank details) on SaaS/digital services at point of sale.

Step: 2 Selling B2B

If the buyer provides a valid Cambodian VAT TIN and pays via company bank account, the supplier does not charge VAT; the buyer self‑assesses under reverse charge and records output and input VAT.

Step: 3 Invoice Requirements

For non‑resident suppliers, invoice must include:

  • supplier name
  • simplified VAT TIN
  • invoice number/date
  • description of digital service
  • customer details (name/address)
  • total price;

For B2B must include customer VAT TIN.

Step: 1 Filing Interval

Monthly VAT returns for both non‑resident suppliers and reverse charge declarations by Cambodian businesses.

Step: 2 Filing Deadline

VAT returns and corresponding payments are due by the 20th of the following month for manual filing, or 25th for e‑filing.

Step: 3 Submission

Returns filed and VAT paid via the GDT e‑Service portal or through local partner banks; use relevant forms (e.g., NR‑VAT01 for non‑resident VAT returns and NR‑VAT02 for reverse charge by resident taxpayers).

Step: 4 Record Keeping

Tax records (invoices, returns, payments) must be retained per Cambodian VAT law (typically minimum 5 years, per general GDT guidance).

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Cambodia’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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