Spotlight on Taxation of E-Commerce in Indochina

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Insight from the IBFD Asia-Pacific Team

birds eye view of globe

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.