Instruction 9898 on zero-rated VAT on export services

The General Department of Taxation (“GDT”) issued Instruction 9898, dated 10 June 2019, which provides further guidelines on when taxpayers may use zero-rate VAT on services performed outside of Cambodia.

The instruction contains discussion on the following:

1. When a service is considered to be performed outside of Cambodia.  Basically, a service is considered to be performed outside of Cambodia if that service is provided outside of Cambodia by a resident enterprise in Cambodia.
2. When a supply of service can be assessed as used outside of Cambodia.  Note that the provision of a service is not considered to be used outside of Cambodia if that service is provided by a Cambodian resident enterprise to a non-resident customer for any business objective or economic interest that relates to Cambodia.
3. Document evidences needed to support charging zero-rate VAT.  Those documents are:
4. A contract clearly specifying the service charge, type of services and the place where the services are provided;
5. Documents showing payments remitted from outside of Cambodia to a bank in Cambodia for the services;
6. Original invoice; and,
7. Verifiable accounting records.

Please do not hesitate to get in touch with Grant Thornton Cambodia for any queries regarding this instruction. Our team will be happy to assist you further if required.

See attached copy of Instruction 9898 on zero-rated VAT on export services for further details.