Opening a Shop in Laos: When Exactly Do You Pay Taxes? — A 2021 Amending Law Clarifies the Timetable

在老挝开店，税到底什么时候交？——一份2021年修订法把时间表说清楚了

ເປີດຮ້ານຢູ່ລາວ, ອາກອນຕ້ອງຈ່າຍເມື່ອໃດ? —— ກົດໝາຍສະບັບປັບປຸງປີ 2021 ໄດ້ກຳນົດເວລາຢ່າງຊັດເຈນ

Published: 2026-09-14 · LaoPaniti legal guides

“The money from this month's sales must be reported for tax by the 20th of next month?” When Awei, who runs a small supermarket in Vientiane, first heard his accountant say this, he almost thought she was joking.

Actually, this wasn't just something the accountant made up. The Law Amending Certain Provisions of Tax-Related Laws (No. 1/NA), promulgated on August 7, 2021, replaced and updated provisions in several tax laws, including the filing deadlines and Value Added Tax (VAT) rules that people encounter most often. It took effect on January 1, 2022.

I. Remember a Few “Deadlines” So You Don't Get a Fine

Article 2 of this law clarifies the tax payment deadlines under Article 39 of the Law on Tax Administration:

Imported goods: taxes are paid together with Customs Duty at the port when declaring and paying import duties;
VAT and Excise Tax on domestically produced and supplied goods and services, as well as income tax on wages: paid monthly, no later than the 20th of the following month;
Profit Tax: paid twice a year, the first no later than July 20, and the second no later than January 20 of the following year;
Income tax for micro-enterprises: paid according to the Contract terms;
Personal VAT from supplies by non-residents: must be paid within fifteen working days.

Simply put, traders, factory owners, and payroll payers should circle the number “20” on their calendars.

II. VAT: What Do 7% and 0% Cover?

In the same Article 2 amendments to the VAT Law, Article 17 states the Tax Rates very plainly:

7%: applies to imported goods, general goods and services, and domestic supply of minerals and electricity;
0%: applies to goods exported abroad.

Which activities are subject to VAT? Article 11 lists four categories: imported goods; supply of goods and services within Laos by Business operators in the VAT system or by non-residents; supply outside the Special Economic Zone; and supply through electronic systems.

Which are not subject to VAT? Article 12 provides an exemption list, such as imported goods including good seeds of plants and animals, vaccines, raw materials for agricultural processing, and Medical device/equipment, as well as domestic supplies including Agricultural products, education, healthcare, interest, and insurance, and exports of minerals and electricity abroad and to Special Economic Zones.

The tax base is in Article 15; foreign currency income must be converted into kip at the official exchange rate for calculation.

III. Can Input Tax Be Deducted? Check These Four Conditions First

Article 23 sets out the conditions for input VAT deduction, four in total; it also clarifies that for those with annual revenue not exceeding 400 million kip, the Ministry of Finance shall prescribe a fixed deduction. Article 24 lists situations where deduction is not allowed.

If you do cross-border business, or you are abroad while doing business in Laos, VAT is especially easy to trip up on. You may also want to read this article on our site: “Abroad but Doing Business in Laos — You Can't Escape This VAT.”

In addition, for readers involved in Import and export, filing deadlines and port tax payments are often tied to customs procedures, so this article is also worth reading alongside: “Container Seized by Customs? You Must Understand This 2022 Lao Customs Guidance for Importers and Exporters.”

If You're Unsure, Just Ask AI

Tax law provisions change frequently, and it's hard for ordinary people to look them up one by one. If you're not sure which Tax Rate applies to your business or by what date you should file, you can go to https://www.123laoai.com to ask AI for free, explain your situation clearly, and let it help you sort through the provisions.

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

FAQ

I sell goods within Laos. When is the latest I can pay VAT?

According to the amendments in Article 2 of the Law Amending Certain Provisions of Tax-Related Laws to Article 39 of the Law on Tax Administration, VAT on domestically produced and supplied goods and services shall be paid monthly, no later than the 20th of the following month.

What is the VAT rate for exported goods?

According to the amendments in Article 2 of this law to Article 17 of the VAT Law, a 0% Tax Rate applies to goods exported abroad; a 7% Tax Rate applies to imported goods, general goods and services, and domestic supply of minerals and electricity.

For small businesses with low annual revenue, how is input tax deducted?

According to the amendments in Article 2 of this law to Article 23 of the VAT Law, input VAT deduction must meet four conditions; for those with annual revenue not exceeding 400 million kip, the Ministry of Finance shall prescribe a fixed deduction.

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