Value Added Tax (VAT) for Small Taxpayers
Summary Lesson-Value Added Tax (VAT) for Cambodia Small Taxpayer
The main ideas of VAT for small, medium and large taxpayers are the same. We recommend you read these articles: VAT for Medium and Large Taxpayers.
The main differences between small taxpayers and medium or large taxpayers are summarized as follow.
1.- Taxpayers are allowed to credit 80% of VAT input to offset VAT output.
2.VAT input is allowed whether taxpayers have VAT invoices or not.
3.Small taxpayers cannot credit VAT input on: gold, diamonds and valuable gemstones, money change service.
VAT Base for Small Taxpayers = Selling Price/1.1 x 20%
VAT for Small Taxpayers = VAT Base for Small Taxpayers x 10%
Example 1
Assume that ABC is small taxpayer. During December 2018, ABC get the following different revenues ( included any taxes):
- – Revenue from sale to XYZ Company $1,000.
- -Revenue of sale to final users $2,000.
Required
Calculate VAT for ABC
Answer
VAT Base for Small Taxpayers = Selling Price/1.1 x 20%=(1,000+2,000)/1.1 x 20%=545
VAT for Small Taxpayers = VAT Base for Small Taxpayers x 10%=545 x 10%=$55