Understanding Cambodia VAT Registration Triggers and Thresholds

Before you can collect and remit VAT in Cambodia, you need to understand what triggers your obligation to register. This article explains Cambodia's economic nexus rules, the registration thresholds, and the special rules that apply to certain types of businesses.

When Are You Required to Register?

Your obligation to register for Cambodia VAT depends on your annual or quarterly sales to Cambodian customers. The thresholds are the same for both resident and non-resident businesses.

You are required to register once either threshold is met or expected to be met in the current calendar year. Registration takes effect from day one of the first tax period after you are required to apply.

What Counts Toward the Threshold?

The following rules apply when calculating whether you have reached the threshold:

• Both B2B and B2C sales count toward your threshold

• Digital services and SaaS sales are included

• Zero-rated supplies (such as exports) count, since they are still taxable supplies at 0%

• Exempt supplies do not count — they are not taxable supplies

• Refunds and credit notes reduce your taxable turnover for the period

• Only local sales to Cambodian customers count — there is no global turnover test for the Cambodia threshold

Special Rule: Automatic Registration as a Large Taxpayer

Under Prakas 009, Article 4, certain entities must register for VAT regardless of turnover. These are automatically classified as Large Taxpayers:

• Subsidiaries of multinational companies

• Branches of foreign companies

• Qualified Investment Projects (QIPs)

If your business falls into one of these categories, registration is mandatory from the start — no threshold applies.

Marketplace and Platform Rules

If you sell through an electronic platform or marketplace, the rules shift:

• The platform operator is treated as a deemed supplier and is responsible for collecting and remitting VAT on behalf of the non-resident seller.

• Sales processed through a qualifying platform do not count toward the non-resident seller's own threshold, provided the platform is accounting for the VAT.

• The platform must register under the Simplified VAT regime if it meets the same KHR 250 million annual or KHR 60 million quarterly threshold.

If you sell directly (not through a platform), you are solely responsible for monitoring your threshold and registering when required.

What Happens When You Cross the Threshold?

Registration takes effect from day one of the first tax period after you are required to apply — or from a later date specified in your tax registration certificate. Once registered, you must collect and remit VAT on all applicable sales from that effective date.

If the GDT retroactively registers you (for example, if it determines you crossed the threshold earlier), your obligations may be backdated to the date the threshold was first met.

Do You Need a Local Agent to Register?

No. Non-resident businesses registering under the Simplified VAT Registration scheme do not need a local agent. A representative is optional but not required.

Summary of Who Must Register

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