Do you have to pay tax on unpaid invoices?

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Do you have to pay tax on unpaid invoices?

Postby dv8inpp » Tue Oct 16, 2018 2:29 pm

Before I spend the money and talk to a tax lawyer does anyone know about paying tax on invoices your customer hasn't paid?

The person that files my tax returns says you have to declare the invoice and pay the VAT tax on any invoice sent to a customer whether it's paid by the customer or not. The good news is though we can claim the VAT back at the end of the year if it's unpaid.
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Re: Do you have to pay tax on unpaid invoices?

Postby Miguelito » Tue Oct 16, 2018 2:41 pm

dv8inpp wrote:Before I spend the money and talk to a tax lawyer does anyone know about paying tax on invoices your customer hasn't paid?

The person that files my tax returns says you have to declare the invoice and pay the VAT tax on any invoice sent to a customer whether it's paid by the customer or not. The good news is though we can claim the VAT back at the end of the year if it's unpaid.


I believe that person is correct. You can now start playing the game of not invoicing at the end of the month, but waiting a week to invoice at the beginning of the next month to help ease the burden on you some, as you are filing monthly.

Good luck claiming it back...
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Re: Do you have to pay tax on unpaid invoices?

Postby dv8inpp » Tue Oct 16, 2018 6:12 pm

Thanks for that. Seems pretty anti business. Glad it's only for small amounts.
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Re: Do you have to pay tax on unpaid invoices?

Postby GMJS-440 » Tue Oct 16, 2018 11:33 pm

That is correct, I forget the specific rule for being able to get it back though.

Not just VAT, to remove it from income as well which has other tax ramifications.
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Re: Do you have to pay tax on unpaid invoices?

Postby jackrossi » Wed Oct 17, 2018 8:40 am

You can get it back.
One of my clients kept paying tax on rent while the landlord was also paying it for months, around 6k he paid unecessarily. I got all his money back without too much trouble.
It takes a bit of explaining and paperwork at the tax office but it's not too hard.
For very small amounts it's probably not worth the time.
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Re: Do you have to pay tax on unpaid invoices?

Postby drwahwah » Wed Oct 17, 2018 9:07 am

jackrossi wrote:You can get it back.
One of my clients kept paying tax on rent while the landlord was also paying it for months, around 6k he paid unecessarily. I got all his money back without too much trouble.
It takes a bit of explaining and paperwork at the tax office but it's not too hard.
For very small amounts it's probably not worth the time.



Yes Above is WHT not VAT so Rules Different and in above example WHT was paid twice.

In practice I have never had an issue (passed tax Audits) claiming back VAT when writing Bad Debt ( Amounts were very small too) off with a Credit Note but this was with business that regularly issued credit notes for other business reasons.

RE deductibility of Bad debt
A loss on a claim (i.e. bad debt) is deductible where the impossibility to recover the loss can be clearly shown and that claim has been written off from the accounting books, except where the giving up of the claim is an ‘abnormal act of management’ (still to be defined).
http://taxsummaries.pwc.com/ID/Cambodia ... Deductions

I have had impossibility explained by Tax professionals as haven tried to recover debts though courts which would only work for large amounts and in its self almost impossible :)
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Re: Do you have to pay tax on unpaid invoices?

Postby dv8inpp » Wed Oct 17, 2018 9:51 am

Thanks for the great answers guys.
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Re: Do you have to pay tax on unpaid invoices?

Postby amirite » Wed Oct 17, 2018 10:02 am



Great resource, thanks.
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Re: Do you have to pay tax on unpaid invoices?

Postby drwahwah » Wed Oct 17, 2018 11:58 am

amirite wrote:


Great resource, thanks.


I also recommend publications from DFDL and VDB LOi
Both their tax guides and investment are due an update but I sign up for their tax & legal updates

https://www.dfdl.com/resources/legal-an ... announced/ THis could be of intrest to your business DVB

http://www.vdb-loi.com/cambodia-tax-updates/

Eurocham are alos running a Tax Forum on 25th Oct with Clint from DFDL & folks from GDT
http://www.eurocham-cambodia.org/event/ ... Forum-2018
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Re: Do you have to pay tax on unpaid invoices?

Postby Miguelito » Wed Oct 17, 2018 12:17 pm

drwahwah wrote:
amirite wrote:


Great resource, thanks.


I also recommend publications from DFDL and VDB LOi
Both their tax guides and investment are due an update but I sign up for their tax & legal updates

https://www.dfdl.com/resources/legal-an ... announced/ THis could be of intrest to your business DVB

http://www.vdb-loi.com/cambodia-tax-updates/

Eurocham are alos running a Tax Forum on 25th Oct with Clint from DFDL & folks from GDT
http://www.eurocham-cambodia.org/event/ ... Forum-2018


Any idea where to find a map showing the SME Cluster zones?
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Re: Do you have to pay tax on unpaid invoices?

Postby drwahwah » Wed Oct 17, 2018 12:42 pm

Miguelito wrote:
drwahwah wrote:
amirite wrote:


Great resource, thanks.


I also recommend publications from DFDL and VDB LOi
Both their tax guides and investment are due an update but I sign up for their tax & legal updates

https://www.dfdl.com/resources/legal-an ... announced/ THis could be of intrest to your business DVB

http://www.vdb-loi.com/cambodia-tax-updates/

Eurocham are alos running a Tax Forum on 25th Oct with Clint from DFDL & folks from GDT
http://www.eurocham-cambodia.org/event/ ... Forum-2018


Any idea where to find a map showing the SME Cluster zones?


AS far as I can see only one planned to date by Worldbridge https://www.phnompenhpost.com/post-focu ... er-farmers
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