Value Added Tax (VAT) for Small Taxpayers

Summary Lesson-Value Added Tax (VAT) for Cambodia Small Taxpayer

The main ideas of VAT for small, medium and large taxpayers are the same. We recommend you read  these articles: VAT for Medium and Large Taxpayers.

The main differences between small taxpayers and medium or large taxpayers are summarized as follow.

1.- Taxpayers are allowed to credit 80% of VAT input to offset VAT output.

2.VAT input is allowed whether taxpayers have VAT invoices or not.

3.Small taxpayers cannot credit VAT input on: gold, diamonds and valuable gemstones, money change service.

VAT Base for Small Taxpayers = Selling Price/1.1 x 20%

VAT for Small Taxpayers = VAT Base for Small Taxpayers  x 10%

Example 1

Assume that ABC is small taxpayer. During December 2018, ABC get the following different revenues ( included any taxes):

• – Revenue from sale to XYZ Company $1,000.
• -Revenue of sale to final users $2,000.

Required

Calculate VAT for ABC

Answer

VAT Base for Small Taxpayers = Selling Price/1.1 x 20%=(1,000+2,000)/1.1 x 20%=545

VAT for Small Taxpayers = VAT Base for Small Taxpayers  x 10%=545 x 10%=$55