LAO PEOPLE’S DEMOCRATIC REPUBLIC
PEACE INDEPENDENCE DEMOCRACY UNITY PROSPERITY

Ministry of Finance
Tax Department        ref.no. 4698/MoF.TD
Vientiane Capital, Dated 3 August 2016

Additional Notification

To:   -   Head of Revenue Collection Management Division, Tax Department; Head of Tax Department in provinces, Vientiane Capital nationwide.
         -   Managing Director of Enterprises/Companies who import and distribute fuel nationwide

Subject:  The calculation for collecting and paying Value Added Tax (VAT) from the importation and distribution of fuel nationwide

- Pursuant to the revised tax law No. 70 / NA dated 15 December 2015;
- Pursuant to the revised Value Added Tax law No. 52 / NA dated 23 July 2014;
- Pursuant to the notification of permanent secretariat office of ministry of finance No.745 / MOF dated 28 March 2016.

Tax Department would like to inform you an additional notification on the implementation of section 5 of a notification of permanent secretariat office, Ministry of Finance No. 745/MOF.PSO dated 28 March 2016 to uniformly implement as follows:

1.  Companies who import fuel nationwide shall notify VAT monthly no later than the 15th of the following month after the distribution of fuel domestically according to the amount of VAT arisen in addition during wholesale and have to be paid. That amount is added in the oil price structure periodically. In case that fuel is imported from abroad (but not movement) to rest in the warehouse in any province its additional VAT during the wholesale have to be paid based on the oil price structure in each period to Tax Department at that province;

2.  Companies who import and distribute fuel shall provide data on infrastructure, and an annual plan of import and distribution of fuel to Tax Department before 01 March every year regularly.

3.  The calculation of VAT at the input uses value or price of wholesale excluding VAT multiple by the VAT rate together with issuing an invoice for the calculation. The VAT that need to be additionally paid equals to VAT at the output based on the value of fuel being sold in a month minus the VAT at the input of the value of fuel being sold in a month as being indicated in the fuel price structure periodically.

4.  The report on a performance of the output and input or VAT certification should take the value excluding all VAT in a month based on the amount of fuel sold on Box no. 15, as for  Box no. 19 is the amount of VAT on the output and provide information: all buying value of the fuel being sold in a month on Box no. 23, as for Box no. 29 is the amount of VAT on the input and there will occur the amount of VAT that have to be paid in Box no. 44 on the certificate which will be equal to the VAT amount needed to be additionally paid in each period multiple with the amount of fuel sold based on the fuel price structure.

Therefore, this is to inform you for your acknowledgement and strictly implementation.

Director General of Tax Department
(Sealed and signed)

Sangvone Phanhthavilay



CC:

- Minister of Finance                                                                                       1 set to report;
- Deputy Minister of Finance                                                                           1 set to report;
- Permanence Secretariat Office, MOIC                                                         1 set to report and implement;
- The Chamber of Industry and Commerce, Chairman of Fuel business association        1 set to report and implement;
- Revenue Collection Management Division, Tax departmetn                         1 set to implement;
- Tax department at provinces, Vientiane  capital                                             1 set to implement

 

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