Ministry of Economy and Finance issued notification No.017 MEF/GDT on the Implementation of Value Added Tax on Imported Cigarettes dated 25 July 2023 with info as follows:
Pursuant to Article 59, Article 65, Article 66 of the Law on Taxation promulgated by Royal decree No. NS/RKM/0523/004 dated 16 May 2023 and Article 60 of the Prakas on Value Added Tax No. 1031 dated 24 December 1998 of the MEF, Highly Recognized by PM on 24 May 2023 with the aim to strengthen the implementation of VAT to be transparent and consistent, the Ministry of Economy and Finance would like to advise all business owners who import cigarette business:
1. For cigarettes imported for domestic sales purposes, the enterprise shall apply value added tax as well as other taxable imported goods, subject to collection in accordance with Article 10% for all cigarette supplies in the Kingdom of Cambodia. The VAT amount paid at the time of importation or domestic purchase is allowed as a tax credit on the input for deduction with the tax on the output.
2. For cigarettes imported for export purposes, the enterprise shall continue to apply for the payment of VAT only once when the import is complete, as has been the practice in the past.
3. Enterprises must file declarations and pay taxes in accordance with the laws and regulations in force.
This instruction is effective from the August 1st of 2023 onwards.