Selling Goods in Laos: How Is VAT Calculated? Three Examples to Make It Clear

在老挝卖货，增值税到底怎么算？三个例子讲明白

ຂາຍເຄື່ອງຢູ່ລາວ, ອາກອນມູນຄ່າເພີ່ມຈະຄິດໄລ່ແນວໃດ? ສາມຕົວຢ່າງອະທິບາຍໃຫ້ເຂົ້າໃຈ

Published: 2026-09-06 · LaoPaniti legal guides

You run a small shop in Vientiane and import goods from Thailand. When selling, you are not sure how much Value Added Tax (VAT) you need to pay. Don't worry. Today, we will explain Laos' VAT rules in plain language.

Who Needs to Pay VAT?

Simply put, if you sell goods or provide services within Laos, or import goods from abroad, you may be subject to VAT. Whether you are Lao or foreigner, if you purchase goods or consume services, you bear this tax. However, the ones responsible for collecting and remitting the tax to the state are business operators who have registered with the tax authority.

If your business annual revenue exceeds 400 million kip, you must register for VAT. If below that threshold, you may voluntarily choose to register.

How to Calculate VAT?

VAT is calculated by multiplying the tax base by the tax rate. The standard rate is 10%, but for some goods, Excise Tax must be paid first, then VAT is calculated.

Example 1: Selling Tiles
You sell a batch of tiles with a tax-exclusive price of 50 million kip. The VAT is:
50 million × 10% = 5 million kip.

Example 2: Selling Air Conditioners (Subject to Excise Tax)
You sell 10 air conditioners with a tax-exclusive price of 60 million kip. The Excise Tax rate is 15%, and VAT rate is 10%.
First, calculate Excise Tax: 60 million × 15% = 9 million kip.
Then, the base for VAT is: 60 million + 9 million = 69 million kip.
VAT is: 69 million × 10% = 6.9 million kip.

Example 3: Exporting Copper Ore
You export copper ore abroad. The export value is USD 5,000 per ton, total 2,500 tons, exchange rate 1 USD = 8,000 kip.
The tax base is: 2,500 × 5,000 × 8,000 = 100 billion kip.
Then apply the VAT rate.

How to Calculate VAT on Imported Goods?

For goods imported from abroad, the tax base is not only the price of goods but also includes Customs Duty, Excise Tax, and various expenses incurred up to the port of entry, such as freight, insurance, and service fees.

Note: Goods imported into Laos from a Special Economic Zone or an exclusive economic zone are also considered imports and subject to VAT. However, if goods are shipped directly from the economic zone to a foreign country, they are not subject to Laos VAT.

Don't Forget to File

When importing goods, you must submit a VAT return together with the Customs Declaration. For businesses operating in Laos, you must file on a monthly or periodic basis, regardless of whether you have revenue.

If you have a Branch, you must file with the local tax authority where the Branch is located, and finally consolidate at the head office.

For more details, such as which goods are exempt and how to deduct input VAT, you can read our previous article: Selling Beer in Laos: How Is Tax Calculated? One Article to Understand the Difference Between Domestic and Imported.

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Tip: Taxation is a professional matter, and each business situation is different. If you have specific questions, feel free to ask 老法智 LaoPaniti for free AI assistance, and get a preliminary reference in minutes.

This article is compiled by 老法智 LaoPaniti for reference only and does not constitute legal advice.

FAQ

I run a small business in Laos with annual revenue below 400 million kip. Do I need to pay VAT?

If your annual revenue is below 400 million kip, you are not required to register for VAT and may choose not to. However, if you voluntarily register, you must comply with tax payment and filing requirements.

How is VAT calculated when importing goods from Thailand to Laos?

The tax base for VAT on imported goods is: the customs declared value + Customs Duty (if any) + Excise Tax (if any) + other charges (such as freight, service fees, etc.), then multiplied by the VAT rate.

I sell goods subject to both Excise Tax and VAT. How do I calculate?

First, calculate Excise Tax: Excise Tax = tax-exclusive price × Excise Tax rate. Then add the Excise Tax to the price to form the base for VAT, and then calculate VAT.

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