ROYAUME DU
CAMBODGE
Nation Religion
Roi
Royal
Government
on
VALUE
ADDED TAX
-
Seen the Constitution of the Kingdom of Cambodia
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Seen the Royal Decree No. NS/RKT/1198/72 dated November 30, 1998 on the
Appointment of the Royal Government of the Kingdom of
Cambodia
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Seen the Kram 02-NS-94 dated July 20, 1994 on the Organization and
Functioning of the Council of Ministers
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Seen the Kram NS/RKM/0196/18 dated January 24, 1996, promulgating the Law
on the Creation of the Ministry of Economy and Finance
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Seen the Kram NS-RKM-0297-03 dated February 24, 1997, promulgating the
Law on Taxation
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Seen the Kram CS/RKM/0108/01 dated January 9, 1997, promulgating the Law
on Financial Management of Year 1998
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Pursuant to approval of
the Council of Ministers in its plenary session on December 24,
1999
HEREBY DECIDES
General Provisions
Article 1:
This Anukret determines the
rules and procedures for regulation and application of the Value Added Tax,
which is called VAT, on the supply of goods or services in the Kingdom of
Cambodia.
Chapter 2
Laws and Procedures for the Registration of Taxable
Persons
Article
2:
The laws and procedures for
VAT registration are as follows:
1.
As stated in
Articles 59 and 76 of the Law on Taxation, all persons subject to the real
regime taxation who make taxable supplies as stated in Article 60 of the Law on
Taxation, are taxable persons. The persons specified in sub-paragraph a)
of paragraph 1 of this Article shall apply to the Tax Department for the
complete registration prior to the commencement of their business activities.
Other persons shall apply for the complete registration within a period of 30
days of the date on which they become a taxable person. Those persons
are:
a)
All types of corporation, import-export enterprises and investment
enterprises.
b)
Any other enterprise who has a taxable turnover, in any period of three
consecutive calendar months, exceeding 125 million Riels in the case of the
supply of goods or 60 Million Riels in the case of the supply of
services.
c)
Any enterprise, at the beginning of any period of three calendar months,
which has reasonable grounds to expect that the taxable turnover will exceed 125
Million Riels in the case of the supply of goods or 60 Million Riels in the case
of the supply of services.
d)
Any enterprise that, at the beginning of any period of three calendar
months, has any government contracts the value of which will produce a taxable
turnover exceeding 30 Million Riels.
In the case of a person
supplying both goods and services who has a taxable turnover exceeding any of
the taxable turnover threshold levels defined in sub-paragraphs b,
c and d of paragraph 1 of this Article, that person shall apply to
be registered.
For the purpose of all
provisions in this Sub-decree, the term “taxable turnover” means the turnover
exclusive of VAT received from the taxable supply of goods or services or any
government contract;
2.
The annual
registration threshold for the persons, who are not corporations, import-export
enterprises, or investment enterprises, is 500 Million Riels in the case of the
supply of goods 250 Million Riels in the case of the supply of services and 125
Million Riels in the case of government contracts.
3. A government institution or body of
a government institution that conducts business activities shall apply for the
complete registration within 30 days of the date of becoming a taxable
person.
4. Any person supplying goods or
services for a consideration as part of his/her business activities but who is
not subject to the registration requirements of paragraph 1 or 3 of this Article
may apply to the Tax Department for registration in accordance with the
provisions of Chapter 3 of this Anukret.
Chapter 3
Article
3:
An application for
registration under Article 2 of this Anukret shall comply with the formalities
prescribed by the Tax Department and the applicant shall provide such
information as the Tax Department may require.
Article 4:
The Tax Department shall
register a person who applies for registration under paragraphs 1 and 3 of
Article 2 of this Anukret and issue to that person a Certificate of Registration
including a Taxpayer Identification Number, except where the Tax Department is
satisfied that the applicant is not subject to the registration requirements of
Article 2 of this Anukret or in the case where an application filed under
paragraph 4 of Article 2 of this Anukret:
a)
Has no permanent place of domicile or business; or
b)
The Tax Department has reasonable grounds to believe that the
person:
-
will not keep proper
accounting records relating to any business activity carried on by that person ;
or
-
will not submit regular
and reliable tax returns as required by Article 70 of the Law on
Taxation.
Article 5:
An effective date of
registration is the date on which a registered person becomes a taxable person.
This date shall take effect:
a)
From the beginning of the month immediately following the month in which
the duty to apply for registration arose in the case of an application under
paragraph 1 or 3 of Article 2 of this Anukret; or
b)
From the beginning of the month immediately following the month in which
the person applied for registration in the case of an application under
paragraph 4 of Article 2 of this Anukret.
Article 6:
A Certificate of
Registration shall state the name, the Taxpayer Identification Number, the
effective date of registration and other relevant details of the taxable
person.
Article 7:
A registered taxable person
may display the Registration Certificate issued under the provisions of this
Anukret at his or her principal place of business.
Article 8:
The Tax Department shall
establish and maintain a register for recording detailed information related to
each taxable person.
The Director of the Tax
Department has the right to register a person if there are reasonable grounds
for believing that the person is required to apply for registration under
paragraphs 1 and 3 of Article 2 of this Anukret but has failed to do so and that
registration shall take effect from the date specified in the Certificate of
Registration.
Article 10:
The Tax Department shall
serve a written notice of a decision whether or not to register within 30 days
of receiving the application to the person applying for registration under
Article 4 of this Sub-decree.
Article 11:
The Tax Department shall
serve a written notice of a decision within 30 days of making the decision to
unilaterally register the person under Article 9 of this
Anukret.
Article 12:
A taxable person shall
notify the Tax Department in writing of any change:
a) in the name or address of
that person ;
b) in circumstances where
the person no longer satisfies the registration requirements;
c) in the type of business
activities or in the type of taxable supplies being made and in other
information.
The notification shall be
made within 15 days after the change has occurred.
Article 13:
A person who is approved by
the Council for the Development of Cambodia (CDC) as an investment enterprise
and is not yet making taxable supplies, may apply to the Tax Department for
investment enterprise registration of which each registration shall not be valid
for more than two years.
Article
14:
A person applying for
registration of an investment enterprise shall provide an undertaking and any
guarantee as required by the Tax Department for the repayment of any tax
refunded by the Tax Department to that person, if that person does not make
taxable supplies within the period during which that person was a registered
investment enterprise.
Article
15:
An investment enterprise may
claim and shall be refunded input tax paid in respect of expenditure on inputs,
whether imported or locally procured, relating to its planned taxable business
activities.
Article 16:
An investment enterprise
shall abide by all the duties and obligations of a registered taxable person,
including the keeping of account books and filing of regular
returns.
Article 17:
A registration as an
investment enterprise shall be immediately ceased when:
a)
The person makes a taxable supply in the course of business;
or
b)
At the end of a two-year period of the date of registration if that
person made no taxable supply unless he/she reapplied for another investment
registration.
Chapter 5
Cancellation of
Registration
Article
18:
A taxable person shall apply
to the Tax Department in writing for the cancellation of registration if that
person has ceased to make supplies of goods or services for consideration as
part of his/her business activities.
Article 19:
A taxable person may apply
in writing to the Tax Department to cancel his/her registration if, with respect
to the most recent period of three calendar months, the taxable turnover does
not exceed the registration threshold specified under paragraph 2 of Article 2
of this Anukret, and if the taxable turnover for the previous twelve calendar
months does not exceed seventy-five percent of the annual registration
threshold.
Article 20:
In the case of a taxable
person who applied for registration under paragraph 4 of Article 2 of this
Anukret an application for cancellation of registration under Article 19 of this
Anukret may only be made after the expiration of two years from the date of
registration.
Article 21:
The Director of the Tax
Department has the right to cancel the registration of
a)
a person who has applied for cancellation under Article 18 or 19 of this
Anukret;
b)
a person who has not applied for cancellation of registration but in
respect of whom the Director is satisfied that he is neither required nor
entitled under Article 2 of this Anukret to be registered;
c)
a person who has not applied for cancellation of registration but who has
not declared taxable supplies over a period of three consecutive calendar
months.
Article 22:
The Director of the Tax
Department may cancel the registration of a person who applies for registration
under paragraph 4 of Article 2 of this Anukret where the
person:
a)
has no fixed place of domicile or business;
b) has not kept proper accounting
records relating to any business activity of that person;
c)
has not submitted regular and reliable tax returns as required by article
70 of the Law on Taxation.
Article 23:
The Tax Department shall
serve a written notice to a taxable person of a decision to cancel or refuse to
cancel the registration under this Chapter within 30 days of receiving the
application for cancellation of registration under paragraph a) of
Article 21 of this Anukret or within 30 days of the decision to cancel the
registration under paragraph b) of Articles 21 and 22 of this
Anukret.
Article 24:
The cancellation of
registration shall take effect from the date at which the registration is
canceled.
Article 25:
Where the registration of a
person is canceled the Tax Department shall remove that person's name and
details described in Article 6 of this Anukret from the
register.
Article 26.:
A taxable person whose
registration has been canceled under this Chapter, shall be considered as having
made a taxable supply of all goods in hand including capital goods, and shall be
liable for output tax on all goods in respect of which input tax credit has been
received. The output tax payable shall be based on the fair market value of the
goods at the time the registration was cancelled.
Article 27:
The cancellation of a
person's registration shall not affect the obligations, liabilities and
penalties of that person under the provisions of the Law on Taxation, including
the filing of returns required under Article 70 of the Law on Taxation, in
respect of anything done or failed to be done by that person while being a
taxable person.
Chapter 6
Credit for Input Tax
Article 28:
1.
After registration,
the taxable person shall be allowed a credit for input tax paid or payable in
respect of:
a)
All taxable supplies of goods, including capital assets acquired by the
person prior to his/her registration;
b)
All imports of goods, including capital assets made by the person prior
to his/her registration.
2.
The conditions of
such relief as a credit shall be determined as follows:
a)
The goods shall be purchased for taxable sales or for use in producing
taxable supplies by the taxable person;
b)
The goods listed in the inventory shall be in hand at the effective date
of registration;
c)
The supply or import occurred not more than 60 days prior to the
effective date of registration;
d)
A claim shall be made in the form prescribed by the Tax
Department.
e)
Clear and proper documentary evidence shall be produced to satisfy the
Tax Department that the taxable person has paid the tax that can be allowed as a
credit.
Article
29:
When a taxable person
calculates the tax payable in the month, the taxable person shall be authorized
a credit only for the tax paid on:
a) All taxable supplies made
to that person during the month;
b) All imports of goods by
that person during the month.
The credit is only allowed
if the taxable supply or import is related to taxable business
activities.
Article
30:
An input tax credit is due
at the following time:
a)
At the time the goods or services are supplied to, or imported by, the
taxable person in the case of a credit under Article 29 of this
Anukret;
b)
At the time the taxable person is registered in the case of a credit
under Article 28 of this Anukret.
Article 31:
Taxable persons shall not be
allowed input tax credit for any tax paid on:
a)
Entertainment,
amusement and recreation expense unless the taxable person carries on a business
as a provider of entertainment, amusement or recreation;
b)
Purchases or imports of
automobiles, unless the taxable person carries on the business of dealing in, or
hiring such automobiles; or
c)
Purchases or imports of
certain petroleum products, unless the taxable person carries on the business as
a supplier of such petroleum products.
Unless otherwise stated, for the purpose of this
Anukret:
a)
The term
“Entertainment” means the provision of food, beverages, tobacco, accommodation,
or hospitality of any kind.
b)
The term “Automobile”
means any automobile designed solely for the transport of person not exceeding
ten in number.
c)
The term “Petroleum
products ” means regular or super gasoline, and lubrication
oil.
Article
32:
In case of goods or services
purchased which are partly used for taxable supplies and partly for non-taxable
supplies, tax credit shall be allowed only on the part that is used for taxable
supplies.
Article
33:
Input tax that may be
allowed as a credit to the taxable person for a tax period
is:
1.
The whole of the
input tax specified in Article 29 of this Anukret where all the taxable person’s
supplies for that period are taxable supplies;
2. Where only part of the taxable
person’s supplies for that period are taxable supplies the amount of credit
allowable is calculated by formula: A x B/C.
A:
the total amount of input tax for the period;
B:
the total value of taxable supplies exclusive of VAT made by the taxable
person during the period; and
C:
the total value of taxable and non-taxable supplies exclusive of VAT made
by the taxable person during the period, other than the value of a non-taxable
supply of the transfer of a business.
Article
34:
Where the fraction B/C in
Article 33 of this Anukret is less than 0.05, the taxable person shall not be
allowed any input tax credit for the tax period.
Article
35:
Where the fraction B/C in
Article 33 of this Anukret is from 0.05 to 0.95, the taxable person shall be
allowed tax credit according to the proportion of the formula specified in
paragraph 2 Article 33 of this Anukret.
Article 36:
Where the fraction B/C in
Article 33 of this Anukret is more than 0.95, the taxable person shall be
allowed tax credit for all input tax for the tax period.
Article
37:
Where a taxable person
makes taxable and non-taxable supplies and is affected by the provisions of
paragraph 2 of Article 33 of this Anukret, the Tax Department may allow the
taxable person to use an alternative method for calculating deductible input
tax:
a)
Separate input tax for taxable and non-taxable supplies in so far as this
is possible. In this case the taxable person may claim all the input tax related
to taxable supplies, and none for input tax related to non-taxable
supplies.
b)
For the remaining input tax that cannot be attributed to taxable and
non-taxable supplies the tax credit shall be calculated according to the
provisions of paragraph 2 of Article 33 of this Anukret.
Article 38:
In the first month of the
following calendar year, the taxable person who has made a calculation under
paragraph 2 of Article 33, sub-paragraph b) of Article 37 of this
Anukret, he/she shall make a calculation of deductible input tax of the previous
calendar year by using the formula specified in paragraph 2 Article 33 of this
Anukret based on the total of annual amount of:
a)
Non-attributable input tax;
b)
Taxable supplies exclusive of VAT;
c)
Taxable supplies
exclusive of VAT and non-taxable supplies, other than a non-taxable supply of
the transfer of a business.
Article
39:
Where the calendar year
credit is:
a)
More than the return credit, the balance shall be regarded as a credit in
the first month of the following calendar year;
b)
Less than the return
credit, the balance shall be regarded as tax debit which is to be paid through
the tax return for the first month of the following calendar
year.
For the purpose of this
Article:
-
The term “Calendar year credit” means the total input tax deductible for
the calendar year based on the calculation on annual
totals.
-
The term “Return credit”
means the total of the input tax claimed as a credit per month of the calendar
year.
-
The term “Tax debit” means
the calendar year credit is less than the return credit.
-
The term “Balance” is the difference of the calendar year credit and the
return credit.
Article 40:
For claiming deductible
input tax credit under the provisions of this Sub-decree, the taxable person
shall have:
a)
An original tax invoice for the taxable supply;
b) A certified Customs Declaration for
Import for evidencing the amount of input tax related to the import of
goods.
1. As stated in Articles 72 and 73 of
the Law on Taxation, where the taxable person exports or is registered as an
investment enterprise that taxable person may claim for refund of excess input
tax every month. Any other taxable person who has excess input tax credit for
three consecutive months or more, that person may apply to the Tax Department
for a refund of such excess input tax credit at the end of the third month or in
any month thereafter.
2. Where a taxable person makes a
claim for refund, but has not declared taxable supplies, the Tax Department
shall not make any refund unless that taxable person is registered for VAT as an
investment enterprise.
3. The Tax Department shall refund the
excess input tax credit by the end of the month following the month the claim
was made.
4. Where a taxable person claiming a
refund is required by the Tax Department to provide accounts or records to prove
the claim and fails to do so in a manner specified by the Tax Department within
15 days of such request, the Tax Department shall refund such excess input tax
credit by the end of the month following the month the taxable person provided
all required documents.
5. The formality of the refund shall
be determined by a Prakas of the Ministry of Economy and
Finance.
Chapter
7
Tax
Invoices
Article 42:
In addition to the
provisions of Article 77 of the Law on Taxation, the use of tax invoices shall
be applied in accordance with the following provisions:
a)
When a supply is made to another taxable person, a taxable person shall
issue to him/her a tax invoice.
b)
Tax invoices shall include the VAT Tax Identification Number (VAT TIN ) of the
purchaser.
c)
A taxable person may require another taxable person who has supplied him
with goods or services to provide a tax invoice in respect of that
supply.
d)
A taxable person who fails to provide a tax invoice to another taxable
person shall be liable to a penalty as provided in the Law on Taxation.
e)
The taxable person shall not issue a tax invoice to a customer who is a
non-taxable person but shall issue a commercial invoice or other voucher to that
non-taxable person.
f)
At the time of supply, the taxable person making the supply shall retain
an original copy of the tax invoices, commercial invoices or other document
issued to their customers.
Non-taxable Supplies for
Diplomatic Missions and International Organizations
Article 43:
Non-taxable supplies for
diplomatic missions and international organizations shall be as
follows:
1.
The imports of
goods for or by foreign diplomatic and consular missions, international
organizations and agencies of technical cooperation of other governments for use
in the exercise of their official function shall be treated as non-taxable
supplies. Non-taxable supplies shall only be allowed on the certification by the
chief of mission and the Ministry of Foreign Affairs and International
Cooperation to the Tax Department that the goods are being imported for use in
the above purpose.
2.
Foreign diplomatic
and consular missions, international organizations and agencies of technical
cooperation of other governments may apply for a refund of the tax on those
goods locally purchased that are listed on an enumerated list which shall be
determined by Prakas of the Ministry of Economy and Finance. The tax refund
shall be granted only on the certification by the chief of mission and the
Ministry of Foreign Affairs and International Cooperation to the Tax Department
that the goods are being purchased for use in the exercise of the official
function of the relevant unit.
3.
The claim for a
refund of tax as stated in paragraph 2 of this Article shall be made in
accordance with the following conditions:
a)
The claim must be in
the form prescribed by the Tax Department;
b)
Each purchase invoice
shall have a total amount exclusive of tax of 200,000 Riels or
more;
c)
Each claim shall have a
total amount exclusive of tax of 1,000,000 Riels or more;
d)
The claim may be made
once a month only.
For the claim of tax refund
as stated in paragraph 2 of this Article, the Tax Department shall serve a
notice of the acceptance or refusal to refund the tax within one month of the
receipt of the claim.
Chapter 9
The Place, Rules and Procedure for Taxable
Supplies
Article 44:
The supply of goods takes
place in the Kingdom of Cambodia if the goods are delivered in the Kingdom of
Cambodia, whether that delivery is characterized as a transfer of the right to
use or to dispose. In case the supply requires transportation, the supply shall
be considered taking place in the Kingdom of Cambodia if the goods are in the
Kingdom of Cambodia at the time the transportation
commences.
Article 45:
The supply of services shall
be considered as taking place in the Kingdom of Cambodia if those services are
performed in the Kingdom of Cambodia, except:
a)
A supply of services in connection with immovable property is deemed to
take place where the immovable property is located;
b)
A supply of services in connection with transport is deemed to take place
where the transport occurs;
c)
A supply of services rendered for use or consumption outside the Kingdom
of Cambodia shall be considered as having been made in the Kingdom of
Cambodia.
Article 46:
The place of supply of
imports is the place where the goods are brought into the customs territory of
the Kingdom of Cambodia, and the place at which the customs duties and other tax
charges of imports are to be paid.
Article 47:
Where the taxable person makes supplies of both goods
and services, those supplies shall be determined as
follows:
1.
A supply of
services incidental to the supply of goods is part of the supply of
goods.
2.
A supply of goods
incidental to the supply of services is part of the supply of
services.
3.
A supply of
services incidental to the import of goods is part of the import of
goods.
4.
The rules and
procedures for application of this Article shall be determined by a Prakas of
the Ministry of Economy and Finance.
Article 48:
The
time of supply of goods or services shall be determined as follows to calculate
the amount of tax for each tax period that the taxable person must declare and
pay to the Tax Department.
1.
The time of supply of goods or services shall be determined as the
following:
a)
The time of supply of goods or services shall be the time the supplier
must issue the invoice or the time the supplier issued the invoice if that
invoice is issued before the time it is required to be issued by the supplier.
The supplier shall issue a tax invoice within 7 days of the delivery of goods or
completion of the performance of services or the payment if the payment is made
before the delivery of goods or completion of the performance of
services.
b)
Where goods are applied to own use, the time of supply is the time at
which the goods are first applied to own use.
c)
Where goods or services are supplied by way of gift, the time of supply
is the time at which the goods are delivered whether that delivery takes on the
characteristic of a transfer of the right to use or to dispose, or performance
of the services is completed.
2. The time of supply of goods under a
hire purchase agreement or finance lease is the time by which the goods are
delivered, whether at the time of delivery it is characterized as a transfer of
the right to use or disposal.
3. Where:
a)
Goods are supplied under a rental agreement; or
b)
Goods or services are supplied under an agreement or law which provides
for periodic payments; or
c)
There is a continuous supply of services,
The
goods or services are treated as successively supplied for successive parts of
the period of the agreement, and the time of supply of each successive supply
occurs on the earlier of the date on which the payment is due or
received.
4
For the import of
goods, the time of supply is the time by which the importer files a declaration
to the customs administration according to the regulations in force and the
customs duty and other import charges are paid.
Chapter 10
Adjustment of Tax Amount
Article 49:
The
rules and procedures for the adjustment of the tax amount after the time of
supply or the issue of a tax invoice shall be determined as
follows:
1. Any taxable person who has issued a
tax invoice or has submitted the monthly return, can make an adjustment of the
tax amount if the following events occur:
- The supply is canceled;
or
- The nature of the
supply has been fundamentally varied or altered; or
- The previously agreed
consideration for the supply has been altered by agreement with the recipient of
the supply, whether due to an offer of a discount or for any other reason; or
- The goods or part
thereof or any packaging have been returned to the supplier or the services have
not been completed.
2. Where there is an adjustment as
stated in paragraph 1 of this Article the taxable person shall adjust the charge
of tax as follows:
a)
If the adjusted output tax exceeds the output tax as recorded by the
taxable person, the excess amount shall be regarded as a tax charged by the
person in the month in which the event referred to in paragraph 1 of this
Article occurred.
b)
If the output tax as recorded by the taxable person exceeds the adjusted
output tax, the excess amount shall be considered as tax credit for the month in
which the event referred to in paragraph 1 of this Article
occurred.
3. Where the supply has been made to a
person who is not a taxable person, the excess amount of tax as stated in
sub-paragraph b of paragraph 2 of this Article shall not be allowed as tax
credit unless the taxable person has paid back that amount to the recipient of
the supply, whether in cash or as a credit against any amount owing to the
taxable person by the recipient.
4. Where a taxable person has issued a
tax invoice in the circumstances specified in paragraph 1 of this Article and
the amount shown as tax charged in that tax invoice exceeds the adjusted tax
amount in respect of the supply, the taxable person making the supply shall
provide the recipient of the supply with a credit note containing the
particulars specified in Chapter 7 of this Anukret and Article 77 of the Law on
Taxation.
5. Where a taxable person has issued a
tax invoice in the circumstances specified in paragraph 1 of this Article and
the amount shown as tax charged in that tax invoice is less than the adjusted
tax amount in respect of the supply, the taxable person making the supply shall
provide the recipient of the supply with a debit note containing the particulars
specified in Chapter 7 of this Anukret and Article 77 of the Law on
Taxation.
6. Both taxable persons making and
receiving supplies who issue or receive debit and credit notes shall account for
those transactions in the same way as with tax invoices.
Chapter 11
Books, Records and
Information
Article
50:
A taxable person shall keep
all records and accounts of all supplies made and received by the taxable person
in the course of business, including zero-rated and non-taxable
supplies.
For the purpose of VAT
accounting the taxable person shall maintain the books of account, records, and
information as follows:
a)
A monthly VAT account specifying total output tax, total input tax and
net tax payable or the excess tax credit due for refund or carry
forward.
b)
Purchase records, showing details of all purchases on which tax has been
paid and all purchases made without payment of tax. Original tax invoice for
local purchases on which tax has been paid, certified Customs Declarations for
Import on which VAT has been paid, and invoices for local purchases made without
VAT shall all be retained in date and numerical order.
c)
Sales records showing all the 10 percent rate taxable sales, zero-rate
taxable sales and non-taxable sales. Original copies of tax invoices related to
taxable sales and invoices related to non-taxable sales shall all be retained in
date and numerical order.
d)
Credit and debit notes issued and received shall all be retained in date
and numerical order.
e)
Record of all zero-rated export of goods and services together with
certified Customs Declarations for Export, copies of invoices issued to the
foreign purchaser, transport documentation in the case of export of goods,
orders or contracts for or with the foreign purchaser, and evidence of payment
by bank transfer through a bank registered in the Kingdom of Cambodia or by a
letter of credit. For the letter of credit, it must be payable by a bank
registered in the Kingdom of Cambodia with a due approval.
f)
Cash flow records maintained by retailers including cash books, petty
cash vouchers, and other account records including copy receipts or till rolls
detailing the daily takings.
g)
Computer records, if the taxable person’s accounting is in the system of
information technology.
h)
Details of input tax calculations where the taxable person is making both
taxable and non-taxable supplies.
i)
Documents, records, and claim forms for all transitional relief claims of
tax credit for turnover and consumption tax.
j)
Stock records showing stock receipts and deliveries and any manufacturing
records.
k)
Order records and delivery notes.
l) Business correspondence
letters.
m) Labor
books.
n)
Annual accounts including trading, profit and loss accounts, the balance
sheet and various tables of complementary information.
o)
Bank records, including statements, check book stubs and paying-in
slips.
All records shall be in the
form prescribed or recognized by the Tax Department, and shall be retained and
made available for inspections for a period of 10 years.
Chapter 12
Supply of Goods or Services for
Consumers
Article 51:
A taxable person supplying
goods liable for VAT at the standard rate to a non-taxable person shall maintain
records as stated in Article 50 of this Sub-decree and shall apply the following
procedures:
a)
In the case of commercial invoices being issued, if the invoice
separately states the VAT, the VAT due in the month shall be calculated based on
the record of sales.
b)
If the invoice does not separately state VAT or the taxable person
making retail sales without issuing invoices, the taxable person shall maintain
a daily record of the value of all taxable sales and non-taxable sales. The tax
amount due for payment shall be calculated by multiplying the total taxable
values with the tax fraction. The tax fraction for a tax rate of 10 percent is
1/11.
The taxable value is
calculated by deducting the tax from the total gross taxable takings for the
month.
Chapter 13
Supply by an Agent
Article
52:
The conditions of supply of
goods or services by an agent shall be determined as
follows:
Collection of VAT at
Importation
Article 53:
The collection of VAT at the
time of importation shall be determined as follows:
1. VAT is due at the time of import
and shall be collected by the Customs Department.
2. The tax shall be collected by means
of the Customs Declaration for Import and shall be treated in the same way as a
customs duty.
3. The taxable value of an
import of goods is the sum of:
a)
The value of the goods ascertained for the purposes of customs duty under
the laws relating to customs;
b)
The amount of customs duty, specific tax on certain merchandise and
services, and any other fiscal charge payable on those goods except VAT;
c)
The value of any services to which paragraph 3 of Article 47 of this
Sub-decree applies which is not otherwise included in the customs value in
sub-paragraph a) of paragraph 3 of this Article.
1.
The Customs
Department shall provide to the importer a copy of the Customs Declaration for
Import that must therein:
a) Enter the VAT Tax Identification
Number if the importer is a taxable person; or
b) Insert “NIL” in the box for Tax
Identification Number if the importer is not a taxable
person.
c)
Certify on the Customs Declaration for Import with the amount of VAT
paid, where the importer is a taxable person making an importation for business
purposes.
d)
Certify the invalidity of the VAT refund, where the importer is not a
taxable person or making an importation for private
purposes.
Chapter 15
Zero-Rating of the Export of Goods and
Services
Article
54:
The
scope of the zero-rating of the Export of Goods and Services shall be determined
as follows:
1. Pursuant to Paragraph 2 of Article
64 of the Law on Taxation, the tax shall be imposed at the rate of 0 % on the
taxable value of each taxable supply of goods exported from the Kingdom of
Cambodia and of the taxable supply of a service rendered outside the Kingdom of
Cambodia. The scope of this provision shall be taken to
include:
a)
Supplies of goods to any place outside the Kingdom of Cambodia as
evidenced by documentary proof acceptable to the Tax
Department.
b)
Supplies of services for use or consumption outside the Kingdom of
Cambodia as evidenced by documentary proof acceptable to the Tax
Department.
c) Supplies of the international
transport of passengers and goods.
d)
Supplies of services in connection with the international transport of
passengers and goods.
2.
For the purposes of
sub-paragraph c) of paragraph 1 of this Article the transport of
passengers or goods by road, rail, water, or by air is international transport if that
transport is made:
a) From a place in the Kingdom of
Cambodia to another place outside off the Kingdom of
Cambodia;
b) From a place outside the Kingdom of
Cambodia to a place in the Kingdom of Cambodia;
c)
From a place outside the Kingdom of Cambodia to another place outside the
Kingdom of Cambodia where the transport or part of the transport is across the
territory of the Kingdom of Cambodia.
Chapter 16
Transfer of a Business
Article
55:
The transfer of a business
from one person to another person, in accordance with the following conditions
shall not be subject to VAT:
a)
The business must be transferred from one person to another to continue
its activities under the new ownership.
b) The taxable person transferring the
business shall notify the Real Regime Tax Office of the transfer of the business
within 10 days of the date of the transfer.
c)
The taxable person transferring the business shall seek cancellation of
his/her registration, if appropriate, and shall comply with the provisions of
Article 81 of the Law on Taxation and relevant Articles of Chapter 5 of this
Sub-decree.
d)
The recipient of the business shall be registered for VAT as a taxable
person at the time the business is acquired and shall account for tax on the
stock and assets acquired at the time of their supply.
e)
The recipient of the business shall retain the tax records related to the
business transferred for a period of 10 years as stated in Article 98 of the Law
on Taxation.
Chapter
17
Transitional
Provisions
Article 56:
The Value Added Tax on
goods listed below shall be applied according to the rule specified by Prakas of
the Minister of Economy and Finance:
-
Cigarettes;
-
Gold;
- Alcohol of alcoholic
strength by volume of 35% or higher;
-
Motorbikes;
- Electricity and
water.
Final Provisions
The Ministers in charge of
the Council of Ministers, the Minister of Economy and Finance, Ministers of all
ministries, and directors of all relevant institutions shall effectively
implement this Anukret from the date of signature herein.
Phnom Penh, December 24,
1999
Prime Minister: Hun Sen
Have submitted to Samdech
Prime Minister for signature
Senior Minister, Minister of
Economy and Finance: Keat Chhon