Ministry of Finance had issued a Provision on the Levy of 10% Value Added Tax of Passengers' Personal Effects no. 2834/MoF, dated 30 August 2016. In order to extend the implementation of the provision, Customs Department has also issued an Instruction on the Management of the Levy of 10% Value Added Tax of Passengers' Effects No. 09523/CD, dated 16 September 2016, which stipulates rules, procedures and measures on the implementation of this provision.
The provision stipulates that Lao citizen or expats passengers living in Laos PDR upon entry through border checkpoints including international airports shall pay 10% value added tax (VAT) on their (new or used) personal effects. The levy of VAT is exempted for infrequent passengers who travel less than twice a month on the item costs below 50 USD. Frequent passengers to Lao PDR are not exempted for VAT and will be charged according to actual value.
Passengers entering Lao PDR shall fill Customs Declaration Form for Personal Effects and submit to customs officials upon their entry into the country. In case the personal effects are new, the passenger shall attach purchase receipt to ease and fasten the calculation of VAT. In case the passengers do not have all receipts or eligible documents or have no document, the customs officials will have the right to evaluate of the items according to present circumstances to calculate for VAT.
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