IntroducingWhy did my coffee invoice charge 10% extra?

Why did my coffee charge 10% extra? 

• The short answer is that you have to pay extra for value-added tax or VAT, which is a tax that is added to the price of a product or service that is paid above the original price. 

So, What is the VAT rate? 

• The average VAT percentage in Cambodia is 10%, but also depends on the production or services of the company. Example: Some imported goods are taxed at up to 35%. 

Why do I have to pay for VAT? 

• Because taxes are the lifeblood of a country's economy. All taxes received by the state will be distributed to all sectors of the country, bringing the economy as a whole. 

What goods or services do not pay VAT? 

• In Cambodia, most goods or services that are not subject to VAT are mostly used in the health, education and welfare sectors, such as medical expenses, insurance services, etc. But there are also some other services, such as stock trading.