According to a report released by the General Department of Taxation on August 8, Cambodia’s VAT revenue from e-commerce reached US$24 million in the first seven months.
Based on the information provided, the above report does not provide comparative data with the same period last year.However, e-commerce VAT revenue in the first seven months of this year was slightly higher than the $7 million in revenue from April to December last year.
The State Administration of Taxation has been actively studying and in-depth understanding of the collection and management of e-commerce VAT by tax authorities in other countries.
Cambodia has seen increased usage of internet and mobile services, driven by the use of electronic devices, e-commerce transactions during the pandemic and the promotion of financial technology.
According to a report by Cambodia's telecommunications regulator, the number of mobile phone users in Cambodia was about 11 million in November last year, down from 1950 million in 2019.
The Cambodian government began to implement e-commerce value-added tax in April this year, imposing tariffs on companies such as Google, Facebook, YouTube, Alibaba, Microsoft and TikTok.
Cambodia began to impose a 4% value-added tax on e-commerce transactions on April 1 last year.
Guan Weibao, State Administration of Taxation, previously stated that e-commerce tax revenue is a potential source of income for Cambodia.
The Cambodian government believes that these measures will help further increase national budget revenue, and taxing foreign e-commerce transactions will also help put local e-commerce operators on an equal footing.
In the first seven months of 2023, Cambodia’s tax revenue reached US$7 billion, which accounted for 23.12% of the budget target.
Cambodia has two agencies responsible for taxation, namely the General Administration of Taxation and the General Administration of Customs.The General Administration of Taxation is mainly responsible for Cambodia’s domestic taxation, including income tax, payroll tax, value-added tax and property tax.The General Administration of Customs is responsible for collecting taxes on entry and exit goods.According to the Cambodian government, the tax and customs revenue revenue target in 2023 is US$55 billion, an increase of nearly 2022% from 16.The realization of this goal will provide strong support for the stability and sustainable development of the Cambodian economy.
