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Laos VAT on digital services update

Ministry of Finance updates guidance for non-resident providers of B2C digital services

The Laos authorities have updated the compliance obligations on foreign providers of digital or electronic services to local consumers.  The obligation for such non-residents to charge Value Added Tax was imposed in February 2022.

Businesses must use the new Digital Tax Services System (‘Tax System) from May 2024. This is a simplified compliance regime, with no right to deduct VAT.

Lao electronic services by non-residents providers and digital marketplaces come into VAT net

From early 2022, the Lao Ministry of Finance has made non-resident providers and marketplaces sellers of electronic or digital services liable to VAT. There is a VAT registration threshold of LAK 400 million (approx €31k or $34k) per annum. There is a simplified registration process via the DTax System.

VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.

What digital services are liable to Lao VAT?

Income from the following services are subject to VAT:

  • Streaming or download music, movies
  • Online gaming
  • Apps
  • Advertising
  • B2C commercial and sharing economy hotels or accomodation
  • Marketplace intermediary fees

Determining if VAT is due in Laos

Under the destination principle, providers of services must determine if their consumer is resident and/or enjoys the service in Laos. If so, the local VAT should be charged and collected. Providers may rely on the following evidence:

  • Billing address of the customer
  • Address of bank, credit card etc of payment method
  • IP address of the device used to access the service
  • International telephone line country code

VAT registration and compliance

Non-residents over the threshold of LAK 400 million should register for a TIN (Tax Identification Number). A local fiscal representative must be appointed.

There are no requirements to produce VAT invoices for B2C sales.

VAT returns must be filed on a quarterly basis. Reporting is due at the end of the second month following the report quarter.

Asia Pacific VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 10% Feb 2022 LAK 400m
Malaysia 8% Jan 2020 RM500,000
Nepal 13% Jul 2022 Rupees 2m Also 2% DST
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Palau 10% Jan 2023 $300,000
Philippines 12% 2024 ? P 3million
Singapore 9% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Sri Lanka 18% 2025? LKR 60m Proposals only
Taiwan 5% May 2017 NTD 480,000
Tajikistan 14% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 12% Jan 2020 Nil
Vietnam 10% Dec 2020


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