The General Administration of Taxation earned $46 million in e-commerce value-added tax (VAT) revenue from the operation of electronic goods and services in the first seven months of this year, according to official statistics yesterday.
The report does not mention any comparative figures with the same period last year. However, the e-commerce value-added tax revenue for the first seven months of this year was slightly higher than the e-commerce value-added tax revenue collected from April to December last year ($44 million).
GDT is conducting further research to understand the management of e-commerce VAT collection from tax authorities in other countries.
The use of digital devices, e-commerce and financial technology during the pandemic has strengthened internet and mobile services in the country.
The number of mobile phone subscribers in Cambodia reached 19.5 million by November last year, down from 21.7 million in 2019, according to a report by the Cambodian Telecommunications Regulatory Authority.
The government began implementing the e-commerce value-added tax in April this year, taxing companies such as Google, Facebook, YouTube, Alibaba, Microsoft, and TikTok.
In Cambodia, a 10% value-added tax on e-commerce has been implemented since April 1st.
The ministry's director-general, Con Viborg, has previously said that value-added tax on e-commerce is a potential source of revenue for the country.
Cambodia sees the potential to further increase national budget revenue, he said, adding that the tax on foreign e-commerce would also give domestic e-commerce operators equal footing.
In the past, foreign companies did not pay income tax and value added tax in Cambodia.
The Ministry of Economy and Finance's GDT collected $2.312 billion in tax revenue in the first seven months of 2023, equivalent to 64% of the budget target.
There are two institutions in the kingdom that collect taxes.
One is the GDCE, which collects taxes on goods entering and leaving the country, and the other is the GDT, which focuses on internal taxes such as income tax, payroll tax, value added tax, and property tax.
The government's goal in 2023 is to
$5.5 billion in revenue from taxes and duties, an increase of nearly 16% compared to 2022.
