On 26 March 2024, the Instructions on the Implementation of Value Added Tax Obligations for Suppliers of Digital Goods and Digital Platform Services or Electronic Commerce Activities from abroad to users in the Lao PDR No.0558/MOF ("Instruction"), which was issued on 14 February 2024, was published in the Official Gazette of Lao PDR ("e-Gazette"). Under the Instruction, suppliers of digital goods and digital platform services or electronic commerce activities from abroad to users in Lao PDR that derive income from such provision of services and activities must register on the Digital Tax Service System ("DTax System") and notify the relevant agency of the value-added tax ("VAT") collected from the transaction.
VAT Notification Payment
Under the Instruction, the payment of VAT must be made every quarter, which the Instruction states as comprising four months. The notification of payment will be as follows:
- First quarter (period covering January to April): taxpayer to be notified that payment must be made within May;
- Second quarter (period covering May to August): taxpayer to be notified that payment must be made within September; and
- Third quarter (period covering September to December): taxpayer to be notified that payment must be made within January of the following year.
Payment Channels
Payment must be made into the National Treasury account in US Dollars (USD), Euros (EUR), Chinese Yuan (CNY) or other currencies as may be notified by the Department of Taxation from time to time through the following channels:
- Payment gateway that accepts debit cards and credit cards of the Visa network: Mastercard, JCB, Amex and Union Pay; and
- Wire transfer.
Late VAT payment will attract penalties including warnings and payment of fines.
The Instructions will apply to transactions starting from 1 August 2024, while registration on the DTax System has started on 1 March 2024.
