Below is a table outlining the steps to calculate VAT in Cambodia:
| Step | Description | Example |
|---|---|---|
| 1. Determine the VAT Rate | Identify the applicable VAT rate in Cambodia. The standard VAT rate is 10%. | VAT Rate: 10% |
| 2. Calculate the VAT Amount | Multiply the net price (price before VAT) by the VAT rate to get the VAT amount. | VAT Amount = Net Price × 10% |
| 3. Calculate the Gross Price | Add the VAT amount to the net price to get the gross price (price including VAT). | Gross Price = Net Price + VAT Amount |
| 4. Reverse Calculate VAT | If the gross price is known, divide it by 1 + VAT rate to find the net price, then subtract. | Net Price = Gross Price / 1.10 |
| 5. Determine VAT Payable | For businesses, subtract input VAT (VAT on purchases) from output VAT (VAT on sales). | VAT Payable = Output VAT – Input VAT |
| 6. Consider Exemptions | Identify any goods or services that are VAT exempt or zero-rated to ensure accurate calculation. | Exempt items: Education, healthcare |
Additional Notes:
- Standard VAT Rate: 10% for most goods and services.
- VAT Registration: Mandatory for businesses with an annual turnover exceeding KHR 125 million.
- VAT Filing: VAT returns are typically filed monthly by the 20th of the following month.