VAT legislation in Cambodia: FAQs

Updated 2 months ago | 5 min read time
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We’re required to charge 10% VAT on top of our commission to some of our partners in Cambodia. We do charge this 10% to partners who don’t have a Cambodian tax identification number (TIN) or a registered Cambodian bank account. We do not charge the 10% if you provide us with your TIN and your registered Cambodian bank account details (B2B partners).

B2B partners are nevertheless obligated to self-assess their VAT under the so-called ‘reverse charge’ mechanism. For these partners, the 10% VAT amount is disclosed in each invoice in compliance with Cambodian invoicing requirements.

For more information on the Cambodian VAT legislation, we recommend partners contact their local tax authorities or tax advisor/accountant.


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Providing us with your tax information

In order to determine whether or not to apply the 10% VAT, we need to know whether you’re VAT registered in Cambodia and whether you have a registered Cambodian bank account. We also require that you provide us with a copy of your certificate of tax registration.

Here’s how to provide us with this information:

  1. Log in to the extranet
  2. Click on Finance and then click on either VAT Details or Finance settings
  3. Indicate whether you have a TIN, upload your certificate of tax registration and your registered Cambodian bank account details
  4. Click Save to finalise

FAQ

  • Since May 2022, we issue invoices with 10% VAT charged on top of our commission to those partners that have not provided with their Cambodian TIN. 

    Starting with invoices issued in July 2022, we are also required to issue invoices with 10% VAT charged on top of our commission to those partners that have not provided us with their registered Cambodian bank account.

    These partners should pay the total invoice amount (commission plus VAT) to Booking.com. 

    B2B partners will also start receiving commission invoices with 10% VAT disclosed but not charged on top of our commission. These partners should only pay the commission amount to Booking.com and pay the 10% VAT directly to the Cambodian tax authorities.

    So that we can determine which bracket you fall under, you need to let us know if you’re VAT registered and provide us with your Cambodian TIN and registered Cambodian bank account.

  • Yes. We will charge VAT if you don’t provide a Cambodian TIN and your registered Cambodian bank account.

  • We charge VAT on top of our commission invoices since May 2022 to partners that have not provided us with their Cambodian TIN.

    Starting with invoices issued in July 2022, we are also required to issue invoices with 10% VAT charged on top of our commission to partners that have not provided us with their registered Cambodian bank account.

  • If you aren’t VAT registered or if you are VAT registered but not entitled to full input tax credit on purchases made, the VAT charged will likely be an additional cost based on the legal requirements in Cambodia. The total invoice (commissions plus VAT, if applicable) needs to be paid in full to Booking.com.

  • We recommend you contact your tax adviser/accountant if you have any questions about your VAT position. We can not provide advice on this matter.

  • We need to know whether you’re registered for VAT purposes in Cambodia or not. If you are, we’ll need your VAT tax identification number and your tax registration certificate. We also required your registered Cambodian bank account.

  • If you don’t provide us with the required information, we’ll automatically charge you the 10% VAT on top of our commission. The total invoice amount (commission plus VAT) must then be paid to Booking.com.

  • Following the implementation of the Prakas 542, we will remit the VAT collected from Cambodian partners in full to the Cambodian tax authorities. For these purposes we have been VAT registered in Cambodia since April 2022.

  • The relevant legislation (Prakas 542) released by the Cambodian General Department of Taxation can be accessed on this government website under the name ‘Prakas on Procedures on The Implementation of VAT E-Commerce’. This is only available in the Khmer language.

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