A value-added tax (VAT) is a tax on consumer expenditure. It is collected on business transactions and imports. Most business transactions involve the supply of goods or services and VAT is payable if the supplies :
- are made in the Kingdom of Cambodia;
- are made by a taxable person;
- are made in the course or furtherance of a business; and
- are not specifically non-taxable or zero-rated.
Supplies which are made in the Kingdom of Cambodia which are not non-taxable are called taxable supplies.
A taxable person is an individual, partnership, corporation, etc which is or is required to be registered for VAT. Certain categories of persons and a person who makes taxable supplies above certain value limits are required to be registered.
Supplies are outside the scope of the tax if they are :
- made by someone who is not a taxable person; or
- not made in the course or furtherance of business.
Bookkeeping, often called record keeping, is the part of accounting that records transactions and business events in the form of journal entries in the accounting system.