Issued: 17 November 2025
The Ministry of Economy and Finance (“MEF”) issued Prakas No. 948 on 17 November 2025 to provide VAT on specific basic food items as a state burden to reduce cost-of-living pressures.
Scope of Application
The VAT under state burden applies to locally supplied basic food items, including meat, eggs, seafood, sugar, salt, soy sauce, and fish sauce, supplied by self-assessed regime taxpayers.
The state-burdened VAT applies from 1 January 2026 to 31 December 2028.
Food supplied in restaurants are excluded and does not qualify for state-borne VAT treatment under Parkas 948.
DFDL Commentary
Prakas 948 forms part of a broader government strategy to ease cost-of-living pressures. Accurate VAT classification and proper invoicing practices are essential to ensure compliance. DFDL can assist with VAT compliance assessments and practical implementation advice.
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. Visit the Cambodia office for more information.
