tax.gov.kh VAT Registration Cambodia : General Department of Taxation

Organization : General Department of Taxation
Type of Facility : VAT Registration
Country: Cambodia

Website : http://www.tax.gov.kh/en/faq.php

VAT Registration :

VAT is a tax on consumer expenditure. It is collected on business transactions and imports.

Related : General Department of Excise Customs Clearance For Passengers Cambodia : www.statusin.org/7432.html

Most business transactions involve the supply of goods or services and VAT is payable if the supplies :
** are made in the Kingdom of Cambodia;
** are made by a taxable person;

** are made in the course or furtherance of a business; and
** are not specifically non-taxable or zero rated.

Supplies which are made in the Kingdom of Cambodia which are not non-taxable are called taxable supplies.

A taxable person is an individual, partnership, corporation, etc which is, or is required to be registered for VAT. Certain categories of persons and a person who makes taxable supplies above certain value limits are required to be registered.

Supplies are outside the scope of the tax if they are :
** made by someone who is not a taxable person; or
** not made in the course or furtherance of business.

Rates of VAT:
There are two rates of tax. The standard rate which is 10%, and the zero-rate which is NIL.

Other Taxable Supplies Maybe Liable To VAT:
Other than your day-to-day sales, you should also account for VAT on the following supplies :
a.) Sales to your staff ( e.g. meal – even if supplied free of charge, or goods at reduced prices or free ), or sales from vending machines.
b.) Sales of business assets ( e.g. equipment, furniture, commercial vehicles );
c.) Hire or loan of goods to someone else;
d.) Gifts to friends or business representatives;
e.) Goods which you or your family have taken from the business for your own use;
f.) Commission received in return for selling something on behalf of someone else.

Who has to be registered for VAT :
Any person conducting a business enterprise or intending to conduct a business enterprise may apply to be registered for VAT. However all corporations, importers, exporters and investment enterprises must register for VAT from the date they commence business. All other taxpayers must register for VAT if their taxable turnover in respect of goods exceeds 125 million Riels or their taxable turnover in respect of services exceeds 60 million Riels for the preceding three consecutive calendar months or is likely to exceed this level in the future three months. In addition the taxpayers with government contracts which will produce taxable turnover exceeding 30 million Riels must register for VAT. Taxable turnover is the gross income of a business excluding VAT and excluding income from non-taxable supplies as defined in Article 57 of the Law on Taxation.

The term any person for purposes of VAT registration includes :
** Sole Proprietor;
** Partnership;
** Private Company;
** Public Company ;
** Joint Venture ;
** Pass through ;
** Club or Association.

A business enterprise :

This refers to any business of whatever nature and it includes examples such as :
(a) Ordinary business e.g. Shops, Contractors, Manufacturers, Wholesalers, Services Providers etc.
(b) Trades and Professions e.g. Architects, Engineers, Accountants , Lawyers etc.
(c) Activities of non-profit making bodies e.g. Societies, Associations, Sporting Clubs etc.

How do I register for VAT ?:
Applications for compulsory as well as voluntary registration must be made on form VAT101, “Application for VAT registration”,which is obtainable from the Department of Large Taxpayer. You must fill in this form and take it to the Department of Large Taxpayer before commencing your business activity if you are a corporation, importer, exporter, investment enterprise, or a government body. Otherwise you should fill in this form and provide any extra information required and take it to the Department of Large Taxpayer by the 15th of the month following the month you exceed the turnover limit requiring registration.

There are penalties for a delayed application. Once the application for registration has been made, the General Department of Taxation will advise you of your VAT Registration Number which will be your VAT TIN ( VAT Tax Identification Number ). A certificate of registration will be issued to you which you will have to display at your main business premises. If registration is refused, you will be notified and the reasons for the refusal explained.

When do I start to charge VAT ?:
You should start keeping VAT records and charging VAT to your customers from the date notified to you by the General Department of Taxation. This will be the date shown on your Certificate of Registration.You will have to account for VAT from the date on which you were registered which will be noted on your Certificate of Registration.

What about my VAT returns ?:
Every month, you must file a VAT return Form VAT 200. The period covered by the return is called a Tax Period.
You have to fill in details of the supplies you have made and received in that period and pay the total tax you owe to the General Department of Taxation or claim a repayment or a credit if tax is owed to you.
Your VAT return and VAT payment must reach the Department of Large Taxpayer by 20th day of the month following the tax period covered by the return .
There are penalties for late filing of the return and for late payment or failure to pay the tax.

What records do I need to keep for VAT purpose ?:
You must keep records of all supplies and purchases you make and receive and a summary of VAT for each period covered by your VAT returns. This is called a “ VAT Account ”.
If you are already in business, you will find that your normal business records can be adapted to give this information.

What should I do to obtain further information ?:
Contact the Department of Large Taxpayer.