Phnom Penh: Cambodia's government has issued a new sub-decree that sets out special conditions to implement VAT on digital goods and digital services that are e-traded. This effects goods and services for use in the Kingdom of Cambodia and supplied by non-resident taxpayers who are not tax registered as a business. These taxpayers must register with the General Department of Taxation (GDT) if their estimated revenue threshold meets the requirements set by the Ministry of Economy and Finance.

In light of this, the Ministry has issued procedures for applying for VAT for e-commerce transactions. This defines the rules for the implementation and management of VAT collection. If anyone fails to register with the tax authority by the deadline, they will be liable for all the tax that is due from the date they should have been registered.

Non-resident e-commerce providers and registered Cambodian taxpayers who fail to meet the requirements are also subject to penalties in accordance with the Law of Taxation. There is a fine ranging from 5 million riel (approximately $1,250) to 10 million riel (approximately $2,500) and/or imprisonment from 1 month to 1 year.