Cambodia’s Ministry of Economy and Finance, issued an Instruction under which the state assumes full 10% VAT liability on diesel fuel and LPG gas supplies to ease price pressures. Enterprises must issue invoices stating “VAT at 10% assumed by the state,” with the measure effective from 1 April 2026 until further notice.

RF Report

Cambodian Ministry of Economy and Finance on 3 April 2026, has issued an Instruction on the state assumption of Value Added Tax (VAT) liability for the supply of diesel fuel and LPG gas, in response to rising international market prices of diesel and LPG and to ease living conditions of citizens.

The Ministry informed enterprises engaged in the import and distribution of diesel fuel and LPG gas, as well as the public, that the Royal Government has introduced additional measures whereby the state will assume full liability for Value Added Tax (VAT) at the rate of 10% on the supply of diesel fuel and LPG gas.

Accordingly, importing and distributing enterprises supplying diesel fuel and LPG gas domestically must comply with the following requirements:

  1. Tax invoices must be issued to customers who are taxpayers under the self-declaration regime; however, VAT must not be charged. Instead, the invoice must state “VAT at 10% assumed by the state.”
  2. Normal invoices must be issued to end-users (non-self-declaration taxpayers), with sales prices not subject to VAT.
  3. In the monthly online business tax filing system (e-Filing), under the “Purchase-Sale Ledger” function, enterprises must select the supply type “VAT assumed by the state.”
  4. VAT at the rates of 4% and/or 10% paid on imports or domestic purchases of diesel fuel and LPG gas may be credited as input tax against actual VAT liabilities, provided customs declarations, tax payment receipts, and/or valid tax invoices and payment documents for domestic purchases are available. Input tax credits paid on imports or domestic purchases other than diesel fuel and LPG gas shall be applied in accordance with the provisions of the VAT Law.

The Instruction takes effect from 1 April 2026 until further decision by the Royal Government.

For domestic supply of regular gasoline, Instruction No. 003 Sahav. S.N.N.A.P.D dated 20 March 2026 of the Ministry of Economy and Finance shall continue to apply.

The General Department of Taxation of the Ministry of Economy and Finance and enterprises importing and distributing diesel fuel and LPG gas under the self-declaration regime are required to strictly implement the content of this Instruction from the date of signature.