How Much Tax Are You Paying?

When you live in Cambodia but want to buy products from USA, you are going to pay some Taxes. We will go one by one from USA to Cambodia.

  1. USA Sales Taxes.
    It’s complicated but you can imagine this as VAT in Cambodia. In the US, it’s usually between 8.6% – 11%. This type of Tax depends on many factors including the following:
    – The identity of the seller
    – The type of item or service purchased
    – The time and location of fulfillment
    – The shipment or delivery address of your order
    That’s why sometime your purchases have this Tax, sometime not.
  2. Cambodia Customs Duties (CD)
    0%, 7%, 15%, 35%, depends on the commodity.
  3. Cambodia Special Tax (ST)
    0%,4.35%, 5%, 10%,15%,20%, 25%, 30%, 45%, 50%, depends on the commodity.
  4. Cambodia Additional Tax (AT)
    0.02$/Liter on Petroleum Oil, 0.04$/Liter on Diesel Fuel
  5. Cambodia Value Added Tax (VAT)
    10% flat rate for everything.

Example

Take this headphone as an example. Let’s see how much Tax you will have to pay.

Listing price is $349

You will have to “Checkout” this item by providing Amazon with Shipping address, Payment method, and Billing address to know the Sales Tax you will pay.

The USA Sales Tax you will pay is $35.77

This Sales Tax amount will be included into the product price.

Now that we know the USA Sales tax is $35.77, we can calculate the other Taxes. This Headphones HS code is 8518.30.10, so it has 15% CD, 10% ST and 10% VAT.

Therefore we have:

  • USA Sales Tax: $35.77
  • Cambodia Customs Duties (CD): 374.77*15% = $57.72
  • Cambodia Special Tax (ST): (374.77+57.72)*10% = $43.25
  • Cambodia Value Added Tax (VAT): (374.77+57.72+43.25)*10%= $47.57
    (You may think it’s strange, but Taxes in Cambodia is calculated in orderly process, the former Tax amount will be added to the initial value to calculate the later Tax, from SD to ST to VAT)

Total: $184.31 (USA Tax = 10%, Total Cambodia Tax = 38%)

I should clarify that, in reality, this is not how your personal parcel would be taxed. In typical situation, you may be asked for 10% VAT. However, some of our customer has reported that they had been asked for 26%, which may be the combination of 10% VAT and 15% Duty.

Although you are not likely to be Taxed more than 10% in Cambodia for your regular personal purchased from the US, I still suggest using forwarder service like Cambo Quick for your valuable purchases. We have experience that can greatly reduce the cost and hassle. We know the exact amount of Tax you will have to pay, so there is no mystery, no extra unexpected fees, everything is warranted.

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