Guide to Cambodia VAT Taxability and Rates

This article explains how Cambodia VAT applies to different types of transactions — specifically for SaaS, digital goods, and ecommerce — and how rates vary depending on whether you are a resident or non-resident seller and whether your customer is a business (B2B) or a consumer (B2C).

What Is Taxable in Cambodia?

Cambodia's VAT framework covers a broad range of digital and SaaS transactions. The following are considered taxable under the non-resident VAT regime:

Digital goods include:

• Software and applications delivered via download or subscription (SaaS, PaaS, IaaS)

• Videos, music, games, and eBooks consumed via streaming, download, or subscription

• Access to websites that allow downloading of digital content

Digital services include:

• Cloud services and online storage

• Online advertising

• Online learning platforms and elearning services

• Streaming services (audio, video, audiovisual)

• Data storage and processing services

• Telecommunications services delivered electronically

Ecommerce includes any business transaction involving the purchase, sale, rental, or exchange of goods or services via an electronic system.

How Does Cambodia Determine That a Transaction Happened There?

A digital service or ecommerce transaction is considered to have occurred in Cambodia if one or more of the following apply:

• The customer's billing address is in Cambodia

• The customer's IP address or SIM card indicates Cambodia

• The customer's payment card or bank account is issued or registered in Cambodia

• The customer's account or registration address is in Cambodia

VAT Rates at a Glance

The standard VAT rate in Cambodia is 10%. How it applies depends on whether you are a resident or non-resident seller.

For non-resident (foreign) sellers:

For resident (Cambodia-based) sellers:

What Is the Reverse Charge Mechanism?

The reverse charge is a VAT rule that shifts the responsibility for paying VAT from the seller to the buyer. It applies specifically to B2B cross-border digital service transactions in Cambodia.

Here is how it works:

• If you are a non-resident seller and your customer is a VAT-registered Cambodian business, you do not charge VAT on the invoice.

• Instead, the Cambodian business buyer self-assesses (calculates and pays) the 10% VAT directly to the GDT through their own monthly VAT return.

• Your invoice should include a note indicating that the customer is responsible for VAT under the reverse charge.

For B2C sales, reverse charge does not apply. You are responsible for charging and remitting the 10% VAT.

Is There a Digital Services Tax (DST)?

No. Cambodia does not impose a separate Digital Services Tax. Only the standard 10% VAT applies to digital and SaaS transactions.

How Kintsugi Handles Cambodia Tax Rates

Kintsugi's tax engine automatically applies the correct rate based on your registration status and the customer type (B2B or B2C). If your customer provides a valid VAT ID, Kintsugi treats the transaction as B2B and applies a 0% rate, with the reverse charge notation applied to the invoice. B2C transactions are rated at 10%.

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