Law on Value Added Tax (Amended) No. 48 / NA of June 20, 2018, aims to define the principles, procedures, and measures of Value Added Tax (VAT). The Law has a purpose to control and collect the revenue of VAT as efficiently and effectively. The revenue can be added to the National Budget which can contribute to promoting productivities, doing businesses, investments, exports, goods supply, and services. Additionally, the Law can create a condition to link in enabling regional and international integration to contribute to national socio-economic development.

Value Added Tax (VAT) is a tax on the value of goods and services added to the import of goods, supplies, and services within the country, which the consumers have to pay the tax. The basic systems of VAT cover VAT, VAT calculation, VAT deduction, and return, VAT notification and delivery, accounting and billing and VAT monitoring and management.

Value Added Tax means any VAT’s collector who is a person, legal entity or organization that operates in the VAT system, tax authorities and buyers of goods and services from individuals who are not residents of the Lao PDR or residents of the Lao PDR but do not register enterprise, as following to Lao regulations. The activities of VAT are goods import, the supply of goods and services in Lao PDR by individuals, legal entities or organizations operating in the VAT system, provision of services in Lao PDR by a non-resident and unregistered Lao enterprises.

Value Added Tax Rate:

1. Ten percent for the import of value-added goods, supplies, and services within the Lao PDR.

2. Zero percent for export of goods.

Some principles for calculating VAT:

1. Trading price reaches the border plus input tax plus excise tax (if it is applicable) for importing goods.

2. Value of goods and services plus excise tax (if it is applicable) excluding VAT for the providing goods and services in the country.

3. Cost of purchasing with exempting VAT for providing services of non-resident and non-registered businesses established by the laws of the Lao PDR.

4. Purchase of goods and services excluding tax, value-added for the provision of goods and services of individuals who are residents but are not registered in accordance with the laws of the Lao PDR.

 

Law on Value Added Tax (Amended) No. 48 / NA on 20 June 2018 is available in Lao only, please click.

 

 

Measures / Standards
# Name Type Agency Description Law Valid To Apply To
1 Value Added Tax payable on Imports Duty/Tax Payable Ministry of Finance Value Added Tax is applied to all imported goods and services as well as domestically produced and consumed goods and services liable to value-added tax law except goods and services mentioned in article 12 of Law on Value Added Tax.
  1. Law on Value Added Tax (Amended) No. 48 / NA dated 20 June 2018
  2. Instruction on the Law of VAT, No.1939/MOF, date 12 April 2021.
 9999-12-31 ALL
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