The Royal Government of Cambodia issued the Sub-Decree No. 134 on Determination of Type, Form and Procedure for Granting Permit or License to E-Commerce Intermediaries or Service Providers and Exemptions on 27 August 2020 (“Sub-Decree 134”). The purpose of Sub-Decree 134 is to govern e-commerce transactions in Cambodia and with other countries. E-commerce is defined as any activity relating to sale, purchase, lease or exchange of goods or services including civil and commercial activities as well as activities and transactions operated by the State through the electronic system.
Sub-Decree 134 is applicable to physical persons, sole proprietorships, legal persons or branches of foreign companies that have transacted through or engaged in e-commerce activities in Cambodia and/or provide e-commerce services from Cambodia to other countries or from a foreign country to Cambodia.
E-Commerce License
Legal persons and branches of foreign companies are required to obtain an e-commerce license from the Ministry of Commerce (“MOC”) for the following e-commerce services:
(1) e-commerce web services;
(3) online shop services;
(4) online auction services; and
(5) other similar services provided through software or smart devices for e-commerce.
The license for e-commerce business is valid for three (03) years and renewable.
E-Commerce Permit
Physical persons or sole proprietorships are required to obtain an e-commerce permit for e-commerce businesses in Cambodia including the use of social media or the electronic system for the supply, sale or purchase of goods or services. The permit for e-commerce business is valid for two (02) years and renewable.
Exemptions
Physical persons or sole proprietorships operating the following e-commerce activities are exempted from the requirement of an e-commerce permit:
(1) commercial marketing of goods or services that is not an offer for creating a contract;
(2) booking services that do not require a deposit or payment by customers or consumers;
(3) sales of goods or services with a turnover below the turnover of a small tax payer;
(4) sales of goods or services through family owned or seasonal businesses;
(5) sales of goods or services that is the works of the artist purely created by himself/herself;
(6) private tutoring; and
(7) education on the State’s religion.
In addition, the following entities are also exempted from the requirement of an e-commerce permit:
(1) non-profit associations or non-governmental organizations providing education for non-profit purposes; or
(2) public institutions providing public services.
Application Deadline for Existing E-commerce Businesses
An e-commerce business operated before the entry into force of this Sub-Decree 134 is required to apply for a permit or license for e-commerce business within six (06) months from the date of the entry into force of the Sub-Decree 134.