The global pandemic, COVID’19 has hit every country in the world badly. Every economy is down. Everyone is worried and the nationwide lockdown is making it even worse for survival. Almost every company in the world is looking to transition from office-based work to a work-from-home model. But working from home can be financially tough for an employee like you. The additional cost of food, electricity, and the internet will eat you down completely. In addition, the cost of setting up the premises is a lot.
How can we reduce the cost?
One thing you can do is claim the VAT input credit. In Cambodia real estate, like any business, home-based business is also required to be registered for VAT. And just like any other company, such a home-based business can also claim the VAT input credits on all the expenses spent on setting up and maintaining the premises.
Note: While claiming the VAT, make sure you do not include any additional expenses related to your house. If you do so, the receiver will then force you to include the VAT on the whole property of yours when you sell it. This means you may lose as much as 15% of the house’s total sale price to VAT.