The Ministry of Economy and Finance has announced the soft launch of the “Cambodia E-Invoicing System”.

The digital platform will allow the exchange, validation, and transfer of electronic invoices between sellers and buyers, eliminating the need for paper-based invoicing.

The system, developed by the ministry’s General Department of Digital Economy (GDDE), serves as a centralised platform, and represents a significant step towards modernising the nation’s public financial systems, according to a December 12 GDDE statement.

“The Cambodia E-Invoicing System is a tool to drive the usage of electronic invoice in Cambodia to increase transparency and accountability of Public Financial Management, support the implementation of the Public Financial Management Reform Program Phase 4, enhance compliance with tax regulations, contribute to sustainable development and prepare businesses to cooperate and integrate with the ASEAN Digital Economy,” it explained.

The initiative aligns with the broader strategic goals of the government’s Cambodia Digital Economy and Society Policy Framework 2021-2035, and was described as a critical milestone in the country’s ongoing economic transformation.

According to the GDDE, by digitising invoices, the system helps mitigate the risks associated with manual processing, such as errors, fraud and tax evasion.

With its focus on improving tax compliance, the system is expected to streamline the invoicing process for businesses across the country, reducing administrative burdens and promoting a more business-friendly environment.

The digital platform will allow for real-time verification of tax data, enabling authorities to monitor and track tax transactions more effectively.

To kick-start the adoption of the new system, the GDDE began registering businesses and tax representatives on December 12.

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Reporter: Hong Raksmey

Publication date: 13 December 2024

Source: The Phnom Penh Post