AKP Phnom Penh, April 06, 2026 -- 

The Ministry of Economy and Finance has announced a new measure to ease the financial burden on citizens by having the state fully bear the value-added tax (VAT) on diesel fuel and liquefied petroleum gas (LPG).

According to an official guideline released on April 6, the Royal Government has decided to absorb 100 percent of the 10 percent VAT on the domestic supply of diesel and LPG, in response to rising global fuel prices and their impact on living costs.

The Ministry instructed importers and distributors of diesel and LPG to comply with specific procedures. For supplies to taxpayers under the self-declaration regime, businesses must issue tax invoices but indicate that the VAT is borne by the state instead of charging the standard 10 percent rate.

For end consumers not under the self-declaration regime, sellers are required to issue regular invoices without including VAT in the sale price.

Businesses must also properly declare these transactions in the monthly online tax filing system (e-Filing), selecting the category indicating VAT borne by the state.

The guideline further states that VAT paid at rates of 4 percent and/or 10 percent on imports or domestic purchases of diesel and LPG can be claimed as input tax credit, provided that proper customs declarations, tax receipts, and supporting documents are submitted. VAT treatment for other goods and services remains unchanged under existing regulations.

The measure takes effect from April 1, 2026, and will remain in force until further notice.

The Ministry added that the supply of regular gasoline continues to be governed by a separate directive issued on Mar. 20, 2026.

By C. Nika