Cambodia Extends VAT Exemption on Essential Food Items

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• 5 December 2025
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Prakas_548_MEF_17-11-25Government Supports Livelihoods by Absorbing Value-Added Tax on Basic Domestic Foods

The Royal Government of Cambodia has decided to continue granting exemptions from Value-Added Tax (VAT) on staple food items essential for the daily living of its citizens. This measure will be effective from January 1, 2026, and will last until the end of 2028.

According to a declaration from the Ministry of Economy and Finance, signed by Deputy Prime Minister and Minister of Economy and Finance, His Excellency Aun Pornmoniroth, and publicized on December 1, 2025, the decision to waive the VAT is intended to place the burden of the Value-Added Tax on the State for domestically produced basic food items. The primary goal is to help ease the daily cost of living for the general population.

This declaration applies to the supply of domestically produced basic food items by taxpayers under the self-declaration regime. The basic foods covered by this exemption include several types of domestic products:

They include meat from farmed animals, whether fresh or processed through methods such as 1) fermentation, marinating, or smoking. 2) Eggs of all kinds from farmed animals are also covered, both fresh and processed. 3) All types of freshwater or saltwater fish, including lobsters, shrimp, prawns, crabs, and all shellfish, are included, whether fresh or processed by fermenting, marinating, or smoking. 4) The exemption also covers all types of sugar, provided they are not in the form of candy. 5) All types of salt, as well as 6) All types of fish sauce and soy sauce, are included in the relief measure.

The Ministry of Economy and Finance has instructed all relevant units under its authority to implement this declaration according to their respective duties, effective from January 1, 2026. However, along with this VAT exemption, the government has also announced the implementation of a 20% tax on capital gains from January 1, 2026. (Read more)

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