Specific Tax on Certain Merchandises and Services-Summary
The Specific Tax on Certain Merchandise and Services is imposed on a number of local and imported products, and services. Specific taxes charged once. We can classify three specific taxes.
1.the local producers of following goods are subject to specific tax :
- gazed soft drinks at 10%
- Alcoholic product and wine at 35%
- Beer at 30%
- Cigarettes at 20%
Tax base for specific tax (example for beer) = (invoiced amount/1.1/1.3) x 90% (see note)
So Specific tax (example for beer) = tax base x 30%
Note:
Invoiced amount/1.1/1.3 x 90%
-1.1 represent 10% VAT
-1.3 represent 30% Specific tax on beer
-90% represent tax base at 90% rate
Example 1
Local ABC Factory in Cambodia produced and sold gazed soft drinks brand ” AA ” (included any taxes) = $2,000
Required:
Calculate Specific Tax on certain goods
Solution
Specific Tax on certain goods
Tax Base=2,000/1.1/1.1 x 90%=$1,487.6
Specific tax = 1487.6 x 10%=$148.76
Example 2
Local XYZ Factory in Cambodia produced and sold wine brand ” Drunk Forever ” (included any taxes) = $4,000
Required:
Calculate Specific Tax on certain goods
Solution
Specific Tax on certain goods
Tax base = 4,000/1.1/1.35*90%=2424.24
Tax = tax base x 35%=2424.24*35%=$848.48
2.The services subject to this specific tax are as follows:
- Entertainment services** at 10%.
- Air transport of passengers for local or international air transport at 10%.
- telephone services for local or international call at 3%.
**Note: Entertainment services include concerts, music, soundtracks, stage shows … massage, steam, Sauna, Car Racing, Motor Racing, Snooker, Bowling, All games and Hockey.
Example 4
BEST MASSAGE HERE Company make revenue of $2,000 (excluded any taxes ) from massage during October.
Required:
Calculate Specific tax on certain service if any.
Solution
Specific tax base = $2,000
Specific tax on certain service ( massage) = $2,000 x 10%=$200
Example 5
BEST MOBILE PHONE Company make revenue from telephone service of $22,000 ( included any taxes ) from different customers during October.
Required:
Calculate Specific Tax on certain service if any.
Solution
Amount before VAT = $22,000/1.1=$20,000 ( amount before 10% VAT)
Specific tax base = $20,000/1.03=$19,417.48
Specific tax on certain service ( telephone service)=$19,417.48 x 3%= $582.52
3.Specific tax for Mix goods and entertainment services
Some goods ( e.g drinking water, meal , foods, wine, beer etc) may sell in entertainment place (e.g. KTV), so these goods also are subject to specific tax at 10%.
Example 6
MY BEST KTV Company made revenue ( included any taxes ) from Karaoke room as follows:
-Fruit……………………$110
-Drinking water…….$11
-Room Price…………..$22
-Foods …………………$220
Required
Calculate specific tax if any.
Solution
Because fruit , drinking, goods are sold in karaoke room, so they are subject to specific tax at 10% rate.
Amount before VAT = ($110+$11+$22+$220)/1.1=$330
Specific tax base=$330/1.1=$300
Specific tax = $300 x 10%=$30
Time of Tax Payment
The local taxpayer producing or supplying these merchandises or services is responsible to pay this tax to the tax administration by the 20th of the month following the month that the supplies are made.