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 will take effect from April 1, 2022.
For the purposes of complying with the New Tax Policy, we 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.
If you are a tax-registered entity or individual in Cambodia, please provide your Tax Identification Number ( TIN ) to TikTok and ensure the TIN matches your business name exactly as registered with the General Department of Taxation, otherwise, your information may not be validated. After your TIN is validated successfully, we will not charge Cambodian VAT on your purchases. You shall be solely responsible for bearing, reporting, and remitting Cambodian VAT on your purchases under the reverse charge mechanism.
If you are not a tax-registered entity or individual in Cambodia, TikTok will become responsible for collecting 10% VAT from you. 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
Please 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.
Please note that 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 your end. 10% VAT will be added to your purchase.
We sincerely thank you for your understanding and cooperation.
Note: This document is not treated as tax advice in any way, but rather it only informs you of how TikTok will invoice you subject to your status of tax registration based on the required documents provided to us. You are fully liable for any tax liability by law to report or withhold and pay. 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.