Legal and Tax Updates

The Use of Khmer Riel in Tax Invoice

Following the article 77, article 78 and article 98 of Law on taxation, and the regulation on Value Added Tax (VAT) along with the Instruction No. 1127 dated January 26, 2016, the General Department of Taxation (GDT) issued the Notification No. 4908 on March 18, 2019 which states to require all registered taxpayers in the self-assessment taxation regime in Cambodia to issue the total amounts in tax invoices to their customers in Khmer Riel (KHR).

GDT has instructed the use of KHR in Tax invoices as per below:

  • The taxpayer is required to issue the total amounts in the tax invoice (along with ten percent VAT) in KHR. For the completeness the itemized amounts, it can be both in KHR and USD (United States Dollars).
  • For the total amount of invoice which has to be converting to KHR, taxpayers should refer to the exchange rate as the following:
  • The monthly published exchange rate from the previous month issued by the GDT; or
  • The market exchange rate which must not be lower than the daily exchange rate of the National Bank of Cambodia.
  • When converting KHR to USD, if the resulting figure has a decimal higher than 0.5 KHR, the taxpayer must round it to 1KHR and if it is under 0.5 Riel then it can be cut out.

If you have any questions regarding this alert or need any advice or assistance on the matter, feel free to contact us.