Laos VAT

Section 1 — Quick reference

Quick reference

Field	Value
Country	Laos (Lao People's Democratic Republic)
Standard rate	10% (effective 2024; previously 7%)
Zero rate	0% (exports)
Exempt	Financial services, education, healthcare, public transport, unprocessed agricultural products
Return form	Monthly VAT return
Filing portal	Tax Department online system
Authority	Tax Department, Ministry of Finance
Currency	LAK (Lao Kip)
Filing frequency	Monthly
Deadline	20th of the month following the tax period
Companion skill	vat-workflow-base v0.1 or later — MUST be loaded
Validated by	Pending local practitioner validation

Conservative defaults

Ambiguity	Default
Unknown rate on a sale	10%
Unknown VAT status of a purchase	Not deductible
Unknown counterparty location	Domestic Laos
Unknown business-use proportion	0% recovery

Section 2 — Required inputs and refusal catalogue

Required inputs

• Minimum viable input — Bank statement for the month. Acceptable from: BCEL (Banque pour le Commerce Exterieur Lao), LDB (Lao Development Bank), JDB, Phongsavanh Bank, BFL, or any other.

Laos-specific refusal catalogue

• R-LA-1 — Special Economic Zone (SEZ) entity — SEZ entities have special VAT exemptions. Please escalate. (Trigger: client in SEZ with tax incentives.)
• R-LA-2 — Concession agreement enterprise — Concession agreements have bespoke tax terms. Please escalate. (Trigger: client with government concession (mining, hydropower).)

Section 3 — Supplier pattern library

3.1 Lao banks (fees exempt — exclude)

Lao banks (fees exempt — exclude)

Pattern	Treatment	Notes
BCEL, BANQUE COMMERCE EXTERIEUR	EXCLUDE for bank charges	Exempt
LDB, LAO DEVELOPMENT BANK	EXCLUDE for bank charges	Same
JDB, JOINT DEVELOPMENT BANK	EXCLUDE for bank charges	Same
PHONGSAVANH BANK, BFL	EXCLUDE for bank charges	Same
INTEREST, LOAN, REPAYMENT	EXCLUDE	Out of scope

3.2 Government (exclude)

Government (exclude)

Pattern	Treatment	Notes
TAX DEPARTMENT, MOF	EXCLUDE	Tax payment
CUSTOMS, LAO CUSTOMS	EXCLUDE	Customs duty (import VAT separate)
LSSO, SOCIAL SECURITY	EXCLUDE	Social security

3.3 Utilities

Utilities

Pattern	Treatment	Notes
EDL, ELECTRICITE DU LAOS	Domestic 10%	Electricity
NPLAOS, LAO WATER	Domestic 10%	Water (commercial)
LTC, UNITEL, ETL	Domestic 10%	Telecoms

3.4 SaaS and international services

SaaS and international services

Pattern	Treatment	Notes
GOOGLE, MICROSOFT, META, AWS	Self-assess 10%	Non-resident
ZOOM, SLACK, CANVA	Self-assess 10%	Same

3.5 Payroll and exclusions

Payroll and exclusions

Pattern	Treatment	Notes
SALARY, WAGES	EXCLUDE	Outside VAT scope
OWN TRANSFER, INTERNAL	EXCLUDE	Internal movement
CASH WITHDRAWAL	TIER 2 — ask	Default exclude

Section 4 — Worked examples

Example 1 — Standard domestic sale at 10%

05.04.2026 ; LAO TRADING CO ; CREDIT ; Invoice LA-041 ; LAK 11,000,000

Domestic. 10%. Net = LAK 10,000,000, VAT = LAK 1,000,000.

Example 1 result table

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Excluded?
05.04.2026	LAO TRADING CO	+11,000,000	+10,000,000	1,000,000	10%	Output	N	—

Example 2 — Export, zero-rated

15.04.2026 ; THAI BUYER CO ; CREDIT ; Exported wood ; LAK 50,000,000

Example 2 result table

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Excluded?
15.04.2026	THAI BUYER CO	+50,000,000	+50,000,000	0	0%	Zero-rated	N	—

Example 3 — Non-resident digital service

18.04.2026 ; GOOGLE ; DEBIT ; Google Ads ; LAK 2,200,000

Example 3 result table

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Excluded?
18.04.2026	GOOGLE	-2,200,000	-2,000,000	200,000	10%	Output + Input	N	—

Example 4 — Bank charges, excluded

30.04.2026 ; BCEL ; DEBIT ; Monthly fee ; LAK -50,000

Example 4 result table

Date	Counterparty	Gross	Net	VAT	Rate	Field	Default?	Excluded?
30.04.2026	BCEL	-50,000	—	—	—	—	N	"Exempt"

Section 5 — Tier 1 classification rules (compressed)

5.1 Standard rate 10% — Default for all taxable supplies.

• Standard rate 10% — Default for all taxable supplies.

5.2 Zero rate — Exports with customs documentation.

• Zero rate — Exports with customs documentation.

5.3 Exempt — Financial services, education, healthcare, public transport, unprocessed agriculture.

• Exempt — Financial services, education, healthcare, public transport, unprocessed agriculture.

5.4 Input tax credit — Valid tax invoice with TIN required. Business purpose.

• Input tax credit — Valid tax invoice with TIN required. Business purpose.

5.5 Blocked input — Personal consumption, entertainment, passenger vehicles.

• Blocked input — Personal consumption, entertainment, passenger vehicles.

5.6 Imports — VAT at 10% on CIF plus duty.

• Imports — VAT at 10% on CIF plus duty.

5.7 Reverse charge — Non-resident services: self-assess 10%.

• Reverse charge — Non-resident services: self-assess 10%.

Section 6 — Tier 2 catalogue (compressed)

6.1 Vehicle costs — Default: 0%. Question: "Commercial vehicle for business?"

• Vehicle costs — Default: 0%. Question: "Commercial vehicle for business?"

6.2 Entertainment — Default: block.

• Entertainment — Default: block.

6.3 SaaS entities — Default: self-assess 10%.

• SaaS entities — Default: self-assess 10%.

6.4 Cash withdrawals — Default: exclude. Question: "Purpose?"

• Cash withdrawals — Default: exclude. Question: "Purpose?"

6.5 Rent — Default: no credit without VAT invoice. Question: "Does landlord charge VAT?"

• Rent — Default: no credit without VAT invoice. Question: "Does landlord charge VAT?"

Section 7 — Excel working paper template

Per vat-workflow-base Section 3, with Laos fields: Output 10%, Zero-rated, Exempt, Input domestic, Input imports, Net VAT.

Section 8 — Bank statement reading guide

BCEL and LDB exports CSV. LAK primary currency; USD/THB common for cross-border. Convert at Bank of Lao PDR official rate. Internal transfers between BCEL/LDB/JDB: exclude.

Section 9 — Onboarding fallback

9.1 TIN — "What is your Tax Identification Number?"

• TIN — "What is your Tax Identification Number?"

9.2 Filing period — Monthly. "Which month?"

• Filing period — Monthly. "Which month?"

9.3 Industry — "What does the business do?"

• Industry — "What does the business do?"

9.4 Exports — "Do you export?"

• Exports — "Do you export?"

9.5 Credit brought forward — Always ask.

• Credit brought forward — Always ask.

Section 10 — Reference material

Sources

1. Lao Tax Law (as amended). 2. Tax Department guidelines. 3. Rate increase to 10% effective 2024.

Known gaps

1. SEZ and concession enterprises refused. 2. Rate recently changed from 7% to 10% — verify for transitional periods.

Change log

v2.0 (April 2026): Full rewrite to Malta v2.0 ten-section structure.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. All outputs must be reviewed by a qualified professional before filing.

The most up-to-date version is maintained at openaccountants.com.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.