Can anyone help to advise on the taxes applicable based on the below scenario?
1. Singapore company issuing an invoice to a Cambodia company.
2. Cambodia company issuing an invoice to a Singapore company.
My understanding is that for 1, the tax applicable to 1 is the 10% WHT and 10% VAT is applicable for 2. Is that correct?
Business Taxes
To be more specific, we have a job with a Cambodia contractor to supply and install construction materials for their residential project. We have found a Cambodia supplier who can help to provide installation services for the materials.
Our company in Singapore will supply the materials to our installation supplier, and then they will provide the service to install the materials.
Therefore, we will bill the contractor and our supplier will be billing us for the services they provide.
Our company in Singapore will supply the materials to our installation supplier, and then they will provide the service to install the materials.
Therefore, we will bill the contractor and our supplier will be billing us for the services they provide.
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- MerkinMaker
- Reactions: 62
- Posts: 3232
- Joined: Wed Mar 21, 2012 11:04 am
If you are following the letter of the law:
Your invoice to the contractor will not contain VAT, as you are not a Cambodian company. As the invoice does not have VAT included, the contractor will have to pay withholding tax on the value of the invoice.
The supplier should include VAT in their invoice to you.
In reality, the contractor will likely ask you for a discount to cover the withholding tax, as withholding tax can't be offset against VAT (which is understandable as this is an expense they wouldn't have with a local supplier).
Also it's possible that the invoice from your supplier won't include VAT, it depends on their size. Usually only medium size enterprises and above will be registered for VAT here.
Your invoice to the contractor will not contain VAT, as you are not a Cambodian company. As the invoice does not have VAT included, the contractor will have to pay withholding tax on the value of the invoice.
The supplier should include VAT in their invoice to you.
In reality, the contractor will likely ask you for a discount to cover the withholding tax, as withholding tax can't be offset against VAT (which is understandable as this is an expense they wouldn't have with a local supplier).
Also it's possible that the invoice from your supplier won't include VAT, it depends on their size. Usually only medium size enterprises and above will be registered for VAT here.
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