Laos Vat

---
name: laos-vat
description: "Use this skill whenever asked to prepare, review, or classify transactions for a Laos VAT return for any client. Trigger on phrases like \"Laos VAT\", \"Lao PDR tax\", \"Tax Department filing\", or any request involving Laos VAT. MUST be loaded alongside vat-workflow-base v0.1 or later. ALWAYS read this skill before touching any Laos VAT work."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/laos-vat"
  jurisdiction: "LA"
  tax_year: "2025"
  last_updated: "2026-07-13"
---

# 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 |

**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](https://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.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `laos-vat` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/laos-vat. If neither is available, confirm every figure against the official source pages cited above before relying on it.