On 3 April 2026, the Ministry of Economy and Finance (“MEF”) issued Instruction No. 006 (“Instruction 006”) providing for the State‑borne VAT on the supply of diesel and liquefied petroleum gas (“LPG”). This measure is part of the Royal Government of Cambodia’s continued efforts to ease cost‑of‑living pressures arising from sustained increases in international fuel prices.
Instruction 006 introduces additional support measures and sets out specific guidance for enterprises engaged in the importation and local distribution of diesel and LPG, particularly in relation to invoicing requirements, VAT reporting, and the treatment of input VAT credits.
Below are the key provisions of Instruction 006
| Description | Details |
|---|---|
| Scope | Applicable to enterprises importing and distributing diesel and LPG products in Cambodia. |
| Invoicing | For self‑declared taxpayers, a tax invoice must be issued with no VAT charged and marked as “VAT State‑charge.”For end‑users, a normal invoice must be issued with prices not subject to VAT. |
| VAT Filing | Supplies must be recorded in the e‑Filing Purchase–Sales Journal under the “State‑charge” transaction type. |
| Input VAT Credit | Input VAT paid on imports or domestic purchases of diesel and LPG remains creditable, subject to valid supporting documents. |
Instruction 006 is effective from 01 April 2026 and remains in force until further notice from the Royal Government. For the domestic supply of regular gasoline products, enterprises must continue to follow Instruction No. 003 dated 20 March 2026 issued by the MEF.
DFDL Commentary
This measure, together with the VAT reduction on regular gasoline and diesel fuel under Instruction No. 003 (effective from 1 April 2026), reflects the Government’s broader policy objective of mitigating the financial impact of elevated global fuel prices on households and businesses.
Affected businesses should review their invoicing templates, accounting systems, and internal controls promptly to ensure alignment with Instruction 006 and to mitigate compliance risk during the effective period of the measure.
DFDL Cambodia can assist businesses with reviewing invoicing practices, VAT compliance assessments, e‑Filing support, and advice on potential tax exposure arising from non-compliance.
Tax services required to be undertaken by a licensed tax agent in Cambodia are provided by Mekong Tax Services Co., Ltd, a member of DFDL and licensed as a Cambodian tax agent under license number – TA201701018.
DFDL offers expert Tax & Transfer Pricing solutions across 10 ASEAN jurisdictions. Learn more about our Cambodia office.
