How to Calculate VAT in Cambodia (2025 Guide)
In Cambodia, Value Added Tax (VAT) is a key component of the national tax system and is administered by the General Department of Taxation (GDT). VAT is levied on most goods and services consumed within the country, and businesses are required to apply VAT correctly on sales, purchases, and imports. This guide explains how VAT works in Cambodia and how to calculate it accurately.
What is the VAT Rate in Cambodia?
The standard VAT rate in Cambodia is 10%. This rate applies to most goods and services sold or imported into the country.
Who Must Register for VAT?
VAT registration is mandatory for:
- Businesses with turnover exceeding 125 million KHR (≈ $30,000/year)
- All importers and exporters
- All legal entities and large taxpayers
VAT-Exclusive vs VAT-Inclusive
When dealing with VAT, it’s important to distinguish between prices that include VAT and those that don’t:
VAT-Inclusive: The VAT is already included in the total price.
Formula to Calculate VAT in Cambodia
Use the following formulas based on whether the price is inclusive or exclusive:
VAT = Price × 10%
Total Price = Price + VAT
VAT = Total Price × (10 ÷ 110) = Total × 0.0909
Net Price = Total Price − VAT
Example 1: VAT on a VAT-Exclusive Price
Let’s say a laptop is priced at 2,000,000 KHR (exclusive of VAT):
Total Price = 2,200,000 KHR
Example 2: VAT from a VAT-Inclusive Price
You receive a bill for 1,100,000 KHR and VAT is already included:
Net Price = 1,000,000 KHR
How to Calculate VAT on Imports
VAT is also levied on the importation of goods. The tax base includes:
- Customs value of the goods (CIF)
- + Import duties and other taxes
VAT = (CIF + Import Duty + Fees) × 10%
VAT Filing and Payment
VAT-registered businesses in Cambodia must:
- File monthly VAT returns with GDT
- Pay VAT collected on sales
- Deduct input VAT from purchases (if eligible)
Claiming Input VAT
Input VAT is the VAT you pay on business purchases. You can claim it back if:
- You are VAT-registered
- The purchase was for business use
- You have valid tax invoices
What Items Are Exempt from VAT in Cambodia?
- Educational services
- Healthcare services
- Financial and insurance services
- Postal services
- Electricity and water for households
VAT Refunds in Cambodia
In some cases, businesses or tourists may apply for VAT refunds. Exporters may receive refunds on input VAT paid for zero-rated exports.
Benefits of Understanding VAT Calculation
- Avoid overpaying or underpaying VAT
- Ensure compliance with the Cambodian Tax Law
- Improve cash flow planning
- Prevent audit penalties
FAQs
What is the standard VAT rate in Cambodia?
The standard VAT rate is 10%.
Is VAT applied to services?
Yes, most services are subject to 10% VAT unless specifically exempt.
How do I reverse-calculate VAT from a total price?
Multiply the total by 0.0909 to find the VAT component in a VAT-inclusive amount.
Can I use Excel to calculate VAT?
Yes. You can create a formula like =Total*(10/110) to extract VAT.
Conclusion
Understanding how to calculate VAT in Cambodia is essential for compliance and accurate financial reporting. Whether you’re pricing a product, filing your VAT return, or checking invoices, knowing how to compute VAT from both inclusive and exclusive amounts is critical. Always ensure your invoices are valid and that you use proper formulas. If in doubt, consult a licensed tax professional or use automated tools for convenience.