Spotlight on Taxation of E-Commerce in Indochina

April 19, 2021 2 minute read

Insight from the IBFD Asia-Pacific Team




Taxation of the digital economy continues to dominate the tax narrative around the world. In early April, Cambodia took its first steps towards the taxation of e-commerce. The Ministry of Economy and Finance (MEF) issued Sub-Decree No. 65 to implement 10% value added tax (VAT) on the supply of digital goods and services or any e-commerce activities made by non-resident entities without a permanent establishment (PE) in Cambodia to local consumers. Shortly before that, its neighbour, Vietnam, released two draft circulars to clarify, inter alia, the definitions of e-commerce activities and digital-based business and the income tax and value added tax (VAT) collection mechanisms for taxpayers conducting e-commerce activities with overseas suppliers.