Other Goods Sold in Entertainment Services

Specific Tax (excise tax) for Other Goods Sold in Entertainment Services-Cambodia Tax

Cigarettes, Cigars and Alcoholic Beverages (beers, wines and other Alcoholic Beverages ) and Other goods/products are sold in entertainment service place are subject to specific tax rate at 10%.

But other goods/products such as fruit, drinking water, goods etc sold in entertainment place are not subject to public lighting tax (PLT), so they are different from Cigarettes, Cigars and Alcoholic Beverages (beers, wines and other Alcoholic Beverages) subject to public lighting tax (PLT) .

Term “Entertainment services” included concerts, music, soundtracks, stage shows … massage, steam, Sauna, Car Racing, Motor Racing, Snooker, Bowling, All games and Hockey.

Specific Tax Base = amount excluded taxes= selling price/1.1/1.1

Specific tax for other goods/products=Specific Tax Base  x 10%

Example 1 

XYZ KTV Company got revenue ( included any taxes ) from  Karaoke room  during September 2020 as follows:

-Foods ………………………$11,000
-Fruit………………………..$1,100
-Drinking water…………$110
-Room fee from KTV….$1,100

Required

Calculate specific tax if any.

Answer 

Specific Tax Base = ( selling price)/1.1/1.1=(11,000+1,100+110+1,100)/1.1/1.1=$11,000

Specific tax for other goods/products including room fee=Specific Tax Base  x 10% =11,000 x 10%=$1,100

Note: 

-Because fruit , drinking, goods are sold in entertainment place (karaoke room), so they are subject to specific tax at 10% rate.
-Also room fee from KTV is subject specific tax rate @ 10%.