Cambodia has rolled out a tax incentive for electric-vehicle charging! The Ministry of Economy and Finance announced a suspension of value-added tax (VAT) on EV charging services, with the policy set to remain in effect through December 31, 2028. The measure aims to lower charging costs for consumers and encourage businesses to invest in building charging stations.
Under a directive signed on October 13 by Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth, the measure takes effect from the date of signing and applies to enterprises operating EV charging stations in Cambodia that follow the self-assessment tax filing system.
The directive makes clear that, during the incentive period, the relevant enterprises must not collect VAT on charging services from consumers. However, VAT paid by enterprises on imported or domestically purchased goods and services in the course of operating charging stations cannot be used as input tax credits.
The number of electric vehicles in Cambodia continues to grow. Data from the Ministry of Public Works and Transport shows that, as of August this year, a total of 22,793 electric vehicles were registered nationwide, including 16,926 electric cars, 4,974 electric motorcycles and 893 electric three-wheelers.
The government hopes to further promote the development of green transport through tax incentives and supporting policies. Under the National Policy on the Development of Electric Vehicles 2024–2030, Cambodia plans to raise the number of electric cars to 30,000 by 2030, while also pushing electric motorcycles and electric tuk-tuks to 720,000 and 20,000 respectively.
With reduced charging costs now in place, whether Cambodia's EV market can expand further and whether investment in charging stations will accelerate is worth continued attention.
