Invoices and VAT in Cambodia
Issuing compliant invoices and managing VAT for businesses in Cambodia
Invoice Issuance in Cambodia
The decree on invoice issuance in Cambodia was updated and effective from January 1, 2020.
Businesses in sectors like hospitality, telecommunications, or establishments selling alcohol and tobacco may need to revise their current invoice templates.
All companies or individuals conducting commercial activities in Cambodia, registered under the “real taxation” system and subject to VAT, must issue invoices. These entities are referred to as "taxpayers".
Note: Information provided is for reference only. Last updated: September 2022.
Three Categories of Taxpayers
Small, medium, or large taxpayers.
For more details, see our page on Corporate Taxation in Cambodia.
Additional Lines on Cambodian Invoices
Medium and large taxpayers must list all applicable taxes separately on invoices, not just VAT.
Specific taxes, such as the Public Lighting Tax (3%) and the Accommodation Tax (2%), must now appear on distinct lines on VAT invoices.
Public Lighting Tax applies to alcohol and cigarette sales.
General Information for Cambodian Invoices
A. All VAT-registered taxpayers under the "real taxation" system must issue an invoice for each sale of goods or services.
B. Invoices must be in Khmer, with English as a secondary language option.
C. Total amounts must be shown in Cambodian Riels (KHR).
D. Invoices must be issued chronologically. VAT invoice numbers restart each tax year.
E. Medium and large taxpayers providing goods or services to other taxpayers must issue tax invoices.
F. Medium and large taxpayers must issue commercial invoices to non-taxable clients.
G. Small taxpayers must issue commercial invoices to all clients.
H. Medium and large taxpayers must retain invoices for 10 years.
I. Small taxpayers retention requirements vary.
Detailed requirements for tax and commercial invoices are reserved for BCC members.
Tax invoices must include the following data: See private members area for full details.
Commercial invoices must include the following data: See private members area for full details.
Penalties
Financial institutions exempt from invoicing obligations may still be required to maintain records for tax review.
Medium and large taxpayers cannot claim VAT credits from small taxpayers; such VAT is treated as a deductible expense in annual corporate tax.
Issuing false or inaccurate invoices, or failing to issue invoices, can lead to tax reassessment, business closure, fines up to 10 million KHR, or imprisonment up to one year.
GDT Lucky Draw - Invoice Verification App
On May 5, 2022, the General Department of Taxation launched the GDT Lucky Draw App. Customers can submit invoices for a chance to win prizes such as Mazda cars, TVs, smartphones, and motorcycles.
- Buyers upload invoices via the tax portal or the mobile app.
- A specialized service verifies compliance. Non-compliant invoices may result in a 2 million KHR fine.
App available on Google Play Store.
Background
In April 2015, Business Center Cambodia was informed of the transition from the "estimated real" system to "real taxation."
- First informational session in June 2015.
- Sihanoukville establishments adopted the new system in late 2015.
- Since January 2016, BCC has assisted numerous businesses with training, accounting, monthly tax forms, and ministry follow-ups.
Full details are reserved for BCC members.
Member-only Resources
- Invoice templates
- Tax invoice elements
- Commercial invoice elements
- Relevant laws and regulations
- VAT credit guidelines