Cambodia: About Value Added Tax (VAT)

Taxes may be applicable to your purchase of TikTok Ads depending on the market or region of your "billing address", unless otherwise agreed.

On September 8, 2021, the Cambodian Ministry of Economy and Finance released Prakas 542 on Rules and Procedures for Implementing the Value Added Tax on E-commerce Transactions (New Tax Policy). The New Tax Policy took effect April 1, 2022.

To comply with the New Tax Policy, TikTok will collect a 10% Cambodia Value Added Tax (VAT) for the supply of TikTok Ads to non-tax registered customers whose billing country for the TikTok Ads Manager Account is set as Cambodia. The tax calculation is as follows:

• Advertising Fee: $100

• VAT tax base: $100

• VAT at 10%: $10

• Gross advertising fee inclusive of VAT: $110

If you are a tax-registered entity or individual in Cambodia, provide your Tax Identification Number (TIN) to TikTok and ensure the TIN matches your business name as registered with the General Department of Taxation. Go to your TikTok Ads Manager Account Setup page to set your Tax Status as a VAT Registered Business, enter your valid TIN, and ensure that your TIN can be fully matched and verified with your business name against the official Ministry of Commerce of Cambodia through the following link: https://www.businessregistration.moc.gov.kh

Once the TIN is submitted or updated, TikTok will initiate a review process to determine the validity of your TIN. The review process takes up to 48 hours. Effective from April 1, 2022, if you make a purchase during the review period, given that your TIN has yet to be verified completely, 10% VAT will be charged on your purchase and the VAT charged are not refundable unless you are entitled to a refund of your prepayment as per TikTok Payment Terms. Once your TIN has been verified, 10% VAT will not be charged on your purchases, and you will be solely responsible for bearing, reporting, and remitting Cambodian VAT under the reverse charge mechanism.

If TikTok does not receive your valid TIN, we shall treat you as a non-tax registered entity or individual and 10% VAT will be added to your purchase until we receive your valid TIN through TikTok Ads Manger Account Setup.

​If you are not a tax-registered entity or individual in Cambodia, no action is needed from you. TikTok will add 10% VAT to your purchases.

Note: The Khmer translation of this document is for reference only and the English version of this document will prevail should there be any difference between the two versions. TikTok is unable to advise you on tax matters. Please contact your local tax advisor or tax authorities for any tax questions that you may have in relation to your ads purchase. You are fully liable for any tax liability by law to report or withhold and pay.