Tax Alert on Custom Duty and Tax Rates on Certain Goods, Gasoline, and Petroleum

Tax Alert
Royal Government of Cambodia

In response to rising international fuel prices and to support the livelihoods of citizens and businesses, the Royal Government of Cambodia has introduced sweeping measures to reduce Value Added Tax (VAT) on regular gasoline, diesel, petroleum, and LPG, alongside substantial customs duty reductions on specific imported goods.

01. Adjustment of Customs Duty and Export Tax Rates

The Royal Government of Cambodia issued Sub-Decree No. 52 ANKr.BK regarding the adjustment of customs duty and export tax rates on certain goods. These statutory changes will take effect from April 1, 2026, structured as follows:

CERTAIN GOODS OLD RATE NEW RATE
Green Energy & Storage

  • EV charging equipment
  • Solar panels
  • Solar inverters and controllers (9 tariff lines)
  • Electric vehicle batteries
  • Solar energy storage systems
  • Deep cycle batteries
 7% 0%
Electric pressure cookers 15% 0%
Automotive & Transport Hardware

  • Electric heaters
  • Passenger cars
  • Freight vehicles of HEV, PHEV, and EV types (179 lines)
  • Family vehicles of PHEV type (52 lines)
 35% 7%
  • Electric stoves
  • Induction cookers
  • Family vehicles of EV type (12 lines)
 35% 0%
Rubidium (1 tariff line) 25% 10%

02. VAT Reduction on Petroleum Products

INSTRUCTION NO. 003 SHV.SNN.GDT  |  EFFECTIVE MARCH 20, 2026

On March 20, 2026, the Ministry of Economy and Finance issued Instruction No. 003 SHV.SNN.GDT to reduce the VAT burden on the domestic supply of regular gasoline and diesel. Petroleum enterprises must apply a reduced 4% VAT rate instead of the standard 10%:

  • Tax Invoices: The stated VAT rate must be explicitly changed from 10% to 4%.
  • Simplified Invoices: The total retail shelf price must include only 4% VAT.

03. State-Borne VAT for Petroleum and LPG

INSTRUCTION NO. 006 SHV.GDT.VAT  |  EFFECTIVE APRIL 1, 2026

Following the previous instruction, the Ministry issued Instruction No. 006 SHV.GDT.VAT. Under this vital measure, the State will absorb the VAT burden for petroleum products and Liquefied Petroleum Gas (LPG) from April 1, 2026, onwards:

  • Pricing Mandate: Enterprises must not collect VAT from the buyer.
  • Tax Invoices: Replace the text item “VAT 10%” with the statutory stamp: VAT is the State’s Burden
  • Simplified Invoices: Zero VAT should be calculated for non-taxpayer customers.

04. Reductions in Customs Duty and Specific Tax

GDCE NOTIFICATION NO. 6069/25  |  EFFECTIVE JANUARY 1, 2026

The General Department of Customs and Excise (GDCE) issued Notification No. 6069/25 introducing substantial, permanent reductions in customs duties and specific tax rates across a wide range of imported goods:

CERTAIN GOODS OLD RATE NEW RATE
IMPORT DUTY REDUCTIONS
Technology & Diagnostics

  • Live poultry
  • Computers and related equipment
  • Antennas
  • Laboratory equipment

(HS headings 0105, 8523, 8529, and 9027)

15% 7% to 0%
Commercial & Consumer Hygiene

  • Glass wool pads
  • Blenders & Juicers
  • Electric rice cookers
  • Stone grinders
  • Sanitary napkins & Diapers

(HS headings 7019 and 9619)

15% 7%
Anti-corrosion paint for ship hulls
(HS headings 3209 and 3210) 		35% 7%
Electric ovens for grilling or roasting
Limousine passenger vehicles
(HS headings 8516 and 8702) 		35% 15%
SPECIFIC TAX REDUCTIONS
Motors for electric vehicles
Vacuum cleaners
Audio equipment
(HS headings 8501, 8508, and 8518) 		10% 0%
Electric vehicle batteries
(HS heading 8507) 		10% 5%
⚠️

Action Required for Businesses

Businesses involved in petroleum, live poultry import, or electronic goods should carefully cross-examine their active accounting systems against these revised schedules. It is vital to update your invoicing software templates immediately to reflect these rates and prevent customs hold-ups or miscalculation penalties.

AUTHORS / CO-AUTHORS
Mr. Darwin HEM  |  Ms. Nguyen Thi Tuyet (Snowz)

BNG Legal Tax Practice

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations. For more details or any question related to this Tax Alert in Cambodia, please contact our professionals via cambodia@bnglegal.com / myanmar@bnglegal.com.

TABLE OF CONTENTS

I. CUSTOMS DUTY & EXPORT TAX
II. VAT ON PETROLEUM
III. STATE-BORNE VAT
IV. DUTY & SPECIFIC TAX LISTS

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