April 14, 2022
PHNOM PENH – Tech giants Amazon, Meta, Microsoft and Google are among 20 digital platforms that have registered for e-commerce value-added tax (VAT) goods and digital services with the General Department of Taxation (GDT).
However, none have paid tax yet, said Eng Ratana, director of GDT’s Large Taxpayer Department, adding that taxpayers have been given until May 25 to declare VAT or face penalties.
“We have set May 25 as the deadline for these companies to file their tax returns before we start applying tax laws where we issue fines,” he told The Post on April 7.
Other big tech players include Booking.com, TikTok, Soho Corp and Mastercard.
Ratana said that because the implementation of VAT on e-commerce digital goods and services in Cambodia – which started on April 1 following three deferments – is a new tax practice, it is necessary to allow some time for operators to understand their obligations.
He said the implementation of the new tax will increase the collection of tax revenue and boost the national economy.
That being said, the GDT does not have an exact figure for non-resident taxpayers or foreign companies who supply digital goods or digital services via e-commerce or conduct e-commerce activities into Cambodia.
Mak Chamroeun, co-founder of Smile Shop, a business-to-business (B2B) e-commerce platform, said Cambodia is a small market for foreign companies to supply products including services online.
“But if these companies operate their business and don’t pay taxes or register their unit as required under Cambodian laws, it is not appropriate for them to trade,” he said.
Chamroeun suggested that more studies must be carried out on the operations of large foreign companies that supply digital goods and services via e-commerce in Cambodia.
“[In particular], how it can contribute to the growth of the sector and if tax exemptions can encourage them to do business here,” he added.