Tax rate by region Laos

Select region

The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Laos applies a standard 10% Value Added Tax (VAT) on cross-border digital products and electronic services supplied by non-resident businesses to local consumers, following a reinstatement of the 10% rate to support the state budget. Under Instruction 0558/MOF, foreign providers face a mandatory registration obligation with the Tax Department from their very first transaction, as there is no minimum monetary threshold. Because Laos does not utilize a traditional reverse charge mechanism for these digital supplies, compliance operates on a thrice-yearly filing cycle, with payments and electronic declarations submitted via the state’s online tax portal.

Mosaic image

Laos

Laos applies a Value Added Tax (VAT) at 10% to digital products and services sold by non-resident businesses to customers in Laos. VAT on cross-border digital services was implemented. 

Official government link: Tax Department Ministry of Finance

10.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

No

Tax ID validation required

Yes

When do you have to register

From the first sale to a Lao customer

Online registration possible

Yes

Local representative needed

No 

Registration procedure

Non-residents must register and secure a Tax Identification Number (TIN) from the Lao Tax Department

List of digital and electronic services liable for tax

Digital goods, digital platforms, e-commerce services

Registration threshold

No threshold (first sale triggers registration)

Filing interval

Quarterly 

Filing deadline

By the 20th day of the month following the end of the quarter 

E-invoicing requirements

For B2B, overseas suppliers must issue e-Invoices using their own template

Record keeping

10 years 

How-To Guides: Laos SaaS VAT

Step: 1 Threshold

Effective August 1, 2024, Laos requires non-resident vendors of digital services (including online platforms) to consumers (B2C) in Laos to register for and collect VAT, regardless of the sales amount.

 

The general VAT threshold is LAK 400,000,000; however, non-resident digital service providers may be required to register when supplying taxable services in Laos.

Step: 2 Business Registration

Non-resident providers must register via the Digital Tax Services System (DTax System) or the TaxRIS portal. No local subsidiary or tax representative is strictly required, though one may be authorized.

Step: 3 TIN/VAT Number

A Tax Identification Number (TIN) is issued by the Lao Tax Department (Ministry of Finance) upon successful online registration

Step: 1 Standard Rate

In Laos, the standard VAT rate is 10% (The standard rate was restored from 7% to 10% in April 2024).

Step: 2 Rate Formula

To calculate your tax amount, use the following formula:

 

Tax Amount = Net Price x 10%

Step: 3 Reverse Charge (B2B)

Historically, Laos used a withholding/reverse charge for B2B. However, under the 2024 Instruction (No. 0558), non-resident digital providers are now generally required to register and charge VAT on both B2B and B2C transactions if they meet the threshold.

Step: 1 Selling B2C

The supplier must charge 10% VAT at the point of sale. Evidence of customer location (IP address, billing address, or SIM card MCC) must be maintained.

Step: 2 Selling B2B

Suppliers must still charge VAT. Unlike many jurisdictions, Laos currently requires the foreign supplier to collect and remit VAT even for B2B, unless a specific exemption applies via a platform rule.

Step: 3 Invoice Requirements

Electronic invoices must include:

– Supplier Name & TIN
– Sequential Invoice Number
– Date of Issue
– Description of Services
– Net Price
– VAT Rate (10%)
– VAT Amount
– Total Price
– Buyer Name/Address.

Step: 1 Filing Interval

The filing interval is quarterly (previously monthly for some entities, but the 2024 update simplified this for non-residents).

Step: 2 Filing Deadline

Taxes should be filed by the 20th day of the month following the end of the quarter (e.g., April 20 for Q1).

Step: 3 Submission

Filings are done via the TaxRIS portal. Payments can be made in LAK, USD, or EUR via wire transfer or authorized payment gateways.

Step: 4 Record Keeping

Tax records should be kept for 10 years. 

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Laos’ VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation.

Talk to an Expert
Mosaic image
en_USEnglish
es_ESEspañol pt_PTPortuguês pt_BRPortuguês do Brasil fr_FRFrançais it_ITItaliano de_DEDeutsch nl_NLNederlands pl_PLPolski ro_RORomână ukУкраїнська zh_CN简体中文 ja日本語 ko_KR한국어 en_USEnglish