The General Department of Taxation earned e-commerce value-added tax (VAT) income of $37 million from the operation of electronic goods and services till November this year.
The government started implementing the e-commerce VAT from April this year. The update was shared in a monthly meeting yesterday under the presence of Director-General Kong Vibol.
“From May to November 2022, the General Department of Taxation collected more than 152 billion riels, or about $37 million, of e-commerce VAT,” Vibol said.
GDT is conducting further research to understand the tax collection management in e-commerce VAT from the tax administrations of various countries, he said.
Cambodia applied the tax to Google, Facebook, YouTube, Alibaba, Microsoft, TikTok and many other companies.
A VAT of 10 percent on e-commerce transactions has been in force since April 1 in Cambodia.
Vibol recently said that the VAT on e-commerce was a potential source of revenue for the nation.
“We see that this has the potential to increase the national budget revenue further,” he said. Vibol said taxes on foreign e-commerce transactions also put the local e-commerce operators on an equal footing.
In the past, foreign companies did not pay income tax and VAT in Cambodia.
The GDT of the Ministry of Economy and Finance collected $3.2 billion in tax revenue in the eleven months of 2022.
According to the plan in the national budget law, the GDT is tasked to collect $2.8 billion in tax revenue in 2022.
The Kingdom has two institutions responsible for collecting taxes.
One is GDCE, which collects taxes on goods entering and leaving the country, and the other is the General Department of Taxation (GDT), which focuses on interior taxes such as income tax, salary tax, value-added tax, and property tax.
This article was first published in Khmer Times. All contents and images are copyright to their respective owners and sources.
