Lao PDR

Changes to value-added tax (VAT) obligations of overseas suppliers providing goods or services via digital platforms

On 26 March 2024, Instruction 0558/MoF dated 14 February 2024 was published in the Official Gazette, replacing Notification 0541/MoF dated 24 February 2022. The Instruction introduces significant changes, especially concerning the VAT obligations of overseas suppliers providing goods or services via digital platforms in Laos.

An overseas supplier must:

• Become a VAT registrant in Laos via the online DTax system (or authorise a representative in Laos to do this on its behalf) and collect VAT from sales transactions as of 1 August 2024.
• Be aware that input VAT can’t be deducted, and VAT refunds are only for commercial reasons (cancellation) and can only be used as a credit for offsetting if the validity period is 183 days.
• Issue eInvoices for business-to-business (B2B) transactions using its own eInvoice template, and these must include the required information outlined in the Instruction (eInvoices aren’t linked to the Lao government portal and getting them approved isn’t mandatory).
• Declare and make VAT payments to the Lao tax authorities quarterly.
• Make VAT payments to the National Treasury’s account, and cards such as Visa debit or credit, Mastercard, JCB, Amex, Union Pay, and wire transfers are accepted.
• Maintain all VAT-related information for ten years.

The Lao tax authorities are identifying non-registered overseas suppliers as part of effectively implementing this Instruction. Non-compliance with this Instruction may result in a warning, fines, or temporary suspension of digital service channels. Penalties will be decided on a case-by-case basis.