- Ministry of Finance in Laos has adopted Instruction No.558 requiring foreign providers of digital services to levy local VAT
- Instruction was published in the Official Gazette on March 26, 2024
- Starting from August 1, 2024, non-resident suppliers of digital services must register for VAT in Laos
- Foreign suppliers will have clarity on VAT compliance obligations for their taxable supplies in Laos
- Lao Tax Department aims to develop an online service for simplified registration of non-resident digital service providers
- Foreign suppliers can make tax payments in EUR or USD, in addition to local currency
- Foreign taxable persons in Laos must levy local VAT on B2C and B2B transactions
- Preparation for new provisions should start to operate following the new rules from August 1, 2024
- Laos is one of many countries implementing VAT obligations for foreign providers of digital services
- Foreign providers must be aware of their VAT obligations towards Laos’ tax authorities starting from August 1, 2024
Source: 1stopvat.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
