Goods

Taxable Supply of Goods Subject to to VAT for Cambodia Tax

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The supply of goods takes place in the Kingdom of Cambodia if the goods are delivered in the Kingdom of Cambodia, whether that delivery is characterized as a transfer of the right to use or to dispose. In case the supply requires transportation, the supply shall be considered taking place in the Kingdom of Cambodia if the goods are in the Kingdom of Cambodia at the time the transportation commences. A supply of services incidental to the supply of goods is part of the supply of goods.

Valued Added Tax (VAT) is applicable on the taxable supply of goods. An entity registered under the VAT provisions is required to charge VAT on all goods of taxable supplies (it is called output VAT for service supply). Such entities can offset the VAT paid on purchases ( it is called input VAT for purchase) against their output VAT.

Goods are tangible properties except land or money. For Example, car, computer, building,air-conditioner,LCD,printer, scanner, furniture,phone, wine, beer, cigarette etc are goods.

Taxable supplies are the supply of goods for taxable sale except they  are supplies under scope of VAT Exemption Supply/Non-taxable goods and services

VAT rate is 10% for standard rate. VAT payment for tax authority is as follows.

VAT payable = VAT output[1] – VAT input[2] – VAT credit from previous months[3]

[1] VAT output = selling price included any taxes/1.1 x 10% or

VAT output = selling price included any taxes but before VAT x 10%

[2] VAT input = purchase price included any taxes/1.1 x 10% or

VAT output = purchase price included any taxes but before VAT x 10%

[3] VAT Credit from previous months occur when VAT input is higher VAT output.




Example 1

XYZ is merchandising company in Cambodia. Company is under taxable supply . The following transactions for August 2018 are as follows.

-Purchase of computer $11,000 (included VAT)
-Purchase of printer $22,000 (included VAT)
-Purchase of Scanner $5,500 (included VAT)
-Bought small truck (fixed asset) $11,000 (included VAT)
-Purchase of $300 ( VAT exemption supply/non credit VAT), for example, electricity, water supply, diesel etc.
-Sale of computer of $15,400
-Sale of printer $33,000 (included VAT)
-Sale of Scanner $11,000 (included VAT)

Required 

Assume VAT credit from previous months (before August) is $1,000.

1. Calculate VAT input during August 2018.

2.Calculate VAT output during August 2018.

3.Calculate VAT payable(credit) for August 2018.

Answer 

1. Calculate VAT input 

VAT input occurred from taxable purchase.

VAT input = purchase price included any taxes/1.1 x 10%

VAT input =($11,000+$22,000+$5,500+$11,000)/1.1 x 10%=$4,500

VAT input=$4,500

2.Calculate VAT output

VAT output = selling price included any taxes/1.1 x 10%

VAT output occurred from taxable supply.

VAT output =($15,400+$33,000+$11,000)/1.1 x 10%=$5,400

so VAT output = $5,400

3.Calculate VAT payable(credit) for August 2018

VAT payable (credit) = VAT output – VAT input – VAT credit from previous months=5,400-4,500-1,000=($100) <0

So it is VAT credit of $100 . This amount will be offset future VAT payable.