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Tax Audits for VAT Reverse Charge on E-goods, Services and IT

Event Details

Date:
February 9, 2024

Time:
08:30AM - 10:30AM

Venue:
Andersen in Cambodia Office

Note: All activities, publications, and events mentioned in this post were conducted under the name VDB Loi prior to our transition to Andersen in Cambodia on 18 September 2024.

Introduction

Since April 2022, born from the COVID boom of online business, a new and costly tax system was created in Cambodia to hit a very wide range of cross border transactions. Although taxpayers are supposed to implement this already for nearly 2 years, misunderstandings about the scope of the VAT Reverse Charge are widespread. We notice in practice that only few taxpayers correctly assess which transactions are included in Cambodia’s newest VAT impost. Online obtained services virtually all trigger VAT Reverse Charge. So is, in many circumstances, obtaining advice from overseas, advertising, data storage, and so on.
In this uniquely practical briefing, we focus on the actual tax audit by tax officials on this VAT Reverse Charge and Withholding tax related to e-commerce transactions. What have tax officials been asking and claiming? How have the rules been applied in reality? And, what can you do to avoid tax reassessments and resolve disputes?

Highlights

Tax audit experiences on VAT Reverse Charge and WHT
Which non-IT services has the GDT sometimes reassessed with VAT Reverse Charge?
Cross border services, software and IT: what has been the experience in actual GDT audits?
How to make sure the VAT Reverse Charge becomes an input credit?
Are there any successful defenses against VAT Reverse Charge?
How to apply Withholding Tax, DTA and VAT on cross-border services and royalties
Special VAT concerns for banks and MFI
Are there steps you can take so that VAT Reverse Charge does not apply?

Speakers

Edwin Vanderbruggen

Senior Partner

Andersen in Cambodia

Edwin has over 30 years of experience as a legal and tax professional, academic, author, and government advisor. He has worked in Southeast Asia for nearly his entire career.

Edwin has built up vast experience advising sponsors, financial institutions, oil and gas supermajors, independent power producers, and other multinational enterprises on their projects in the region, including on multibillion dollar energy and infrastructure projects, mergers and acquisitions, and financing transactions.

He is renowned for his expertise in international taxation and investment, regional tax structuring, and tax planning.

He has assisted the governments of Cambodia (2006-2008 as a full-time adviser to the Minister of Finance), Thailand (2001-2005), Vietnam (2010), and Myanmar (2013-2020) on transactions or on issues such as legal reform, public finance, privatization, and taxation. He has also frequently consulted for IFC, ADB, the United Nations, and governmental agencies of Japan, Korea, and the Netherlands.

In his academic career, he has lectured at six prestigious universities in Europe and Asia, and written nine textbooks and over 40 scholarly articles, some of which have won scientific awards.

Laysym Sim

Partner

Andersen in Cambodia

Laysym is an experienced tax professional with a degree in management. He has over 20 years of work experience, including with KPMG in Cambodia, where he was responsible for relations with the tax authorities. Laysym works with a wide variety of clients, both local and international, across a broad range of industry sectors, with a particular focus on the real estate and transportation industries. He has advised on tax planning for large property projects, employee benefits, and has conducted tax due diligence on several major acquisitions in Cambodia.

Laysym heads the firm’s tax compliance and tax disputes teams. He has a long and proven track record of successful defense of multinationals, banks, and property developers. He also leads our transfer pricing practice in Cambodia.