E-Commerce VAT Registration/Reverse Charge Implementation Date Extended

The General Department of Taxation ("GDT") issued Notification no. 776 GDT on the 17th of January 2022 ("Notification 776") which delays the implementation of Prakas 542 MEF.P on the Rules and Procedure for the Implementation of VAT on E-Commerce ("Prakas 542") to 31 March 2022.

Previously Instruction 20522 issued by the GDT on the 8th of December 2021 ("Instruction 20522") had postponed the implementation of Prakas 542 to 31 December 2021.

What this delay means is that non-resident e-commerce providers who meet the sales threshold requirements to register under the simplified VAT system in Cambodia will need to do so before 1 April 2022. For those Cambodian self-assessment taxpayers that transact with non-resident e-commerce providers (B2B transaction) the VAT reverse charge obligation will only apply from 1 April 2022 meaning that the first VAT reverse charge declaration and payment would be due to be submitted on the 20th of May 2022 for manual returns