VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It is generally chargeable on all taxable goods and services supplied in (i.e., consumed or otherwise utilised) Cambodia. It is a consumption tax because it is ultimately borne by the final consumer.
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the VAT on e-commerce rules concerning electronically supplied services by non-resident service providers to resident taxpayers (both non-VAT registered customers and VAT-registered customers) in Cambodia.
If you are VAT registered in Cambodia, you should provide your Tax Identification Number (TIN) to Zoom (see ‘How do I enter my Tax Identification Number (TIN)?’ below for details on how to do this). If the TIN is valid, then no VAT will be charged on the supplies made to you by Zoom. If you do not have a valid TIN, then VAT will be charged on the supplies made to you by Zoom.
Please note, due to the current legislation in Cambodia, VAT-registered customers should ensure that payment for Zoom services is made using a bank account under the name of the VAT-registered customer. Failure to do so may result in VAT being charged on invoices issued to you, even if you have provided a valid TIN to Zoom.
A Tax Identification Number (TIN) is a unique number issued by the General Department of Taxation (GDT) to registered taxpayers in Cambodia. The general TIN of tax registered entities in Cambodia is as follows (X represents numerical digits):
Yes. As a non-resident taxpayer supplying electronic services to resident taxpayers in Cambodia, Zoom is registered for VAT in Cambodia under the Simplified VAT Registration with the Cambodian tax authority and will display its TIN on invoices issued to you.
To provide your TIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
Zoom performs periodic validation checks of customer TINs to ensure that the TIN remains valid. If, during these periodic validations, it is identified that your TIN is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid TIN is provided.
You are required to notify us if there is a change to your VAT registration status.
If a customer's ‘Sold To’ location is in Cambodia, and the customer has not provided a valid Cambodian TIN, Zoom will charge VAT on its invoices.
Please note, due to the current legislation in Cambodia, VAT registered customers should ensure that payment for Zoom services is made using a bank account under their legal entity name. Failure to do so may result in VAT being charged on invoices issued to you, even if you have provided a valid TIN to Zoom.
No, where a customer in Cambodia has not provided a valid Cambodian TIN, Zoom will charge VAT on all supplies made to you.
Under the current VAT on e-commerce legislation, there should not be any exemptions applicable to non-profit organisations or international agencies. If you have any questions regarding tax exemption in Cambodia, please contact Billing.
If you have provided a valid TIN to Zoom, no VAT will be charged on the supplies made to you. However, you may be required to collect VAT on the supplies on behalf of Zoom through the Reverse Charge Mechanism, pay the tax, and file the return Form NR-VA01 to the Cambodian tax authority by the 20th (manual filing) or by the 25th (e-filing) of the following month after the transaction.
Small taxpayers are exempt from the obligation to apply the “reverse charge” mechanism for a period of five years from 8 September 2021. A small taxpayer is any sole proprietorship or partnership that:
There is no VAT obligation for a customer who is not registered for VAT in Cambodia. However, Zoom will charge VAT on its supplies to you.
Your TIN may be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no valid TIN is entered at the time the next invoice is issued, VAT will be charged until a valid TIN is provided. No retrospective adjustments will be made where you did not provide your valid TIN to Zoom.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant tax rules in Cambodia. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.