The General Department of Taxation issued guidance concerning value added tax (VAT) on sales of long-term tangible assets or in certain instances when businesses stop using these long-term assets.
The guidance—Instruction No. 15301 (22 June 2020)—provides that the application of VAT on the sale of long-term tangible assets will follow these rules:
The concept “long-term assets ceased to be used” refers to long-term assets that are retained but no longer used by the enterprise in its business activity.
Enterprises that make non-taxable supplies—and thus input tax credit was not allowed for the purchase of long-term tangible assets—are to impose VAT at a rate of 10% when they sell those long-term tangible assets.
Instruction No. 15301 replaces a previous Instruction No. 11581 (5 May 2020) concerning the VAT imposed on disposition of business assets.
Read a June 2020 report [PDF 181 KB] prepared by the KPMG member firm in Cambodia
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