How much VAT do you pay for buying goods and importing goods in Laos? The 2024 new decree clarifies

老挝买东西、进口货,增值税到底交多少?2024年新法令说清楚了

ການຊື້ເຄື່ອງ, ການນຳເຂົ້າສິນຄ້າຢູ່ລາວ, ຕ້ອງເສຍອາກອນມູນຄ່າເພີ່ມເທົ່າໃດ? ຂໍ້ກຳນົດໃໝ່ປີ 2024 ອະທິບາຍໄວ້ແລ້ວ

Published: 2026-09-08 · LaoPaniti legal guides

You run a small supermarket in Vientiane and recently imported a batch of daily necessities from Thailand. When the goods arrived at the checkpoint, the customs broker told you: in addition to customs duty, you also need to pay 10% Value Added Tax (VAT). You wonder: wasn't it 7% before? Why did it suddenly increase?

Don't worry, this is actually a change brought about by a new decree issued by Laos on March 19, 2024 - the "Decree on Adjustment of Value Added Tax Rate". Today, let's break it down and explain it in plain language: which items are subject to 10% tax, and which situations are relevant to you.

1. The VAT rate is uniformly adjusted to 10%, what exactly does it cover?

According to Article 1 of the Decree on Adjustment of Value Added Tax Rate (i.e., Article 2 of the decree), the VAT rate in Laos is uniformly adjusted to 10%. It specifically covers three categories:

1. Import of goods, supply, and general services: As long as you import goods into Laos from abroad, or sell goods or provide services within Laos (such as running a restaurant or doing renovation), you basically cannot escape this 10%.
2. Mineral products: Whether importing ore or selling mineral products within Laos, the tax is also levied at 10%.
3. Electricity energy: General household electricity, factory electricity, and even power plants and electricity distributors must pay tax at this rate.

In simple terms, as long as you are involved in the above businesses, you must calculate VAT at 10% when issuing invoices. The previous 7% rate is no longer applicable after the new decree takes effect.

2. When does the decree start to be enforced? Who is responsible for implementation?

Article 2 of the decree clarifies that the Lao government is responsible for organizing implementation. Article 3 states that the decree takes effect from the date of signing by the President. That is, from the date of signing on March 19, 2024, the new tax rate is officially in force.

If you are doing import business or have just signed a supply contract, it is best to immediately check the tax rate terms in the contract to avoid quoting at the old rate and then having to pay 10% tax, which could eat into your profits.

3. How does it relate to your business? Three scenarios to help you identify

Scenario A: Importer. You import goods from China to Vientiane. When you make customs declaration, Customs will levy VAT at 10%. You have to pay this amount upfront, but if your customers are companies, you can issue VAT invoices to deduct the input tax.
Scenario B: Local service provider. You run an advertising company and provide design services to clients. When charging, you need to add 10% VAT on top of the quoted price. If the client is an individual, this 10% is basically your cost; if the client is a company, they can deduct it, and you can also pass on the tax.
Scenario C: Ordinary household. When you pay your electricity bill, the bill already includes 10% VAT. Although you may not feel it, the electricity price is actually slightly higher than before.

If you are still unclear about VAT bookkeeping and filing, we suggest you read our previous article "How to calculate VAT when selling goods in Laos? Three examples to make it clear" [https://www.123laoai.com/guide/186], which has specific calculation examples.

Conclusion

Tax rate adjustment is a big deal, directly affecting your costs and quotes. If you are unsure whether your business is subject to the 10% rate, or how to calculate the tax, don't guess on your own - go to LaoPaniti (https://www.123laoai.com) and ask AI for free, input your industry and business, and get preliminary reference in seconds.

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

FAQ

I run a restaurant in Laos. Do I need to pay 10% VAT on selling food?

According to Article 1 of the Decree on Adjustment of Value Added Tax Rate, general services are subject to 10% VAT. Running a restaurant is providing catering services, so your turnover needs to pay VAT at 10%. However, if your customers are individuals, this tax is usually included in the food price; if they are corporate clients, you can issue VAT invoices for them to deduct.

I import a batch of machinery from China to Laos. Besides customs duty, do I need to pay 10% VAT?

Yes. Article 1 of the decree clearly states that goods imported into Laos are subject to VAT at 10%. Therefore, when you make customs declaration for import, in addition to customs duty, you need to pay an additional VAT. This amount can be included in the cost, and if you issue VAT invoices during subsequent sales, you can deduct the input tax.

When does the new decree take effect? Can I still sign contracts at the old tax rate now?

Article 3 of the decree stipulates that it takes effect from the date of signing by the President. The signing date is March 19, 2024, so from that day, the new rate of 10% is in effect. If you sign a contract now, it is recommended to agree on the price directly at the 10% rate to avoid future disputes. If the contract states the old rate, you may face the risk of supplementary tax.

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