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Laos VAT on digital services 2022

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.

Laos cut VAT to 7% at the start of 2022.

Subscribe to our frequent global VAT and GST news letter for other updates. 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)

Asia Pacific VAT on digital services

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

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