Instruction 017 MEF.GDT dated 25 July 2023 issued by the Ministry of Economy and Finance on the “Implementation of Value Added Tax on Imported Cigarettes”

This instruction was issued to advise all entities involved in cigarette importation or the distribution of imported cigarettes on the implementation of value added tax (“VAT”), as outlined below:

• For cigarettes imported for the purpose of domestic sales only, entities must apply VAT like other taxable imported goods. This means that they must collect VAT at a rate of 10% for all cigarette supplies in the Kingdom of Cambodia. VAT that was incurred on importation or from local purchases in the country can be claimed as an input VAT credit and is deductible from output VAT.
• For cigarettes imported for the purpose of export, entities are required to pay VAT only once, at the time of importation, as in the past.
• Entities must file declarations and pay VAT in accordance with the laws and regulations in force.