Order on Implementation of Value Added Tax in Oudomxay Province

Article

Lao People's Democratic Republic
Peace, Independence, Democracy, Unity, Prosperity

Oudomxay Province No. 0877/OX
Date: 5 May 2025

Order
No. 0877/OX
On the Implementation of Value Added Tax in Oudomxay Province

- Pursuant to the Law on Local Administration (Amended) No. 68/NA, dated 14 December 2015;
- Pursuant to the Law on Value Added Tax No. 60/NA, dated 28 June 2024;
- Pursuant to the Proposal of the Provincial Finance Department No. 528/PFD, dated 10 April 2025.

In order to make the implementation of laws and regulations approved in each period effective and serve as a tool for state management and social management in a fair and unified manner within the framework
Throughout Oudomxay province, especially the implementation of the Value Added Tax Law, to manage the fulfillment of obligations of business entities into the state budget correctly and completely in accordance with the law, to strengthen the budget and public finance.

The Governor issues an order:

1. Individuals, legal entities or organizations that have registered a business and obtained a taxpayer identification number, and have been licensed to operate by the relevant sectors throughout Oudomxay province, shall enter the value added tax system and comply with the regulations on value added tax (VAT) according to the law and regulations, starting from: hotels, guesthouses, resorts, restaurants, entertainment venues, canteens, coffee shops, car repair shops, mini-marts, construction material stores, household goods stores
Offices, gold shops or valuable goods shops, pawnshops and other groups;

2. Individuals, legal entities or organizations that are former VAT taxpayers and micro-enterprises entering the new VAT system must keep accounts correctly and up-to-date, must use receipts and issue VAT receipts to buyers or service users correctly according to regulations, and shall start calculating and collecting VAT from July 1, 2025 onwards, then declare and remit such VAT at the tax office under their jurisdiction before the 20th of the following month;

b. Collection of VAT from foreign operators not registered in the Lao PDR
Lao PDR, and demand to obtain value-added tax invoices

In paper or electronic form, from suppliers of goods or services in the VAT system

Every time there is a purchase of goods or use of services, to comply correctly with the law
and as evidence for recording expenses;

Individuals, legal entities, and organizations are prohibited from violating the prohibitions stipulated in the Law on Value Added Tax; otherwise, they will be strictly dealt with according to the measures prescribed in the regulations;

Individuals, legal entities, or organizations conducting business in the VAT system, if they violate the law
Orders and regulations regarding value added tax shall implement measures as stipulated in the Tax Administration Law and the Value Added Tax Law on a case-by-case basis.

In addition, the following supplementary measures shall be implemented:

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Cases of incomplete or non-compliance with the rights and obligations of value added tax payers, such as: not keeping accounts or keeping incorrect accounts, not issuing correct receipts to buyers or service users, calculation of collection or deduction of value added tax
Incorrect addition, incorrect filling of declaration form, failure to submit declaration, delayed payment of value-added tax, continuing to violate or not comply after a record has been made, etc.;

- Within 15 days after the record is made, if the business entity still has not made corrections, the relevant sector will temporarily suspend its operations to allow the business entity to make corrections within a period of 30 days;

- If within the 30-day period of temporary suspension for correction, the said entity still has not made corrections, its enterprise registration certificate will be revoked, its business license will be revoked, or it will be penalized according to law depending on the severity of the case.

All relevant sectors shall promote and apply measures against old value-added tax declarants
Micro-enterprises that need to enter the VAT system for renewal of business licenses.
In addition, they must cooperate and facilitate the implementation of measures against VAT taxpayers who violate the Law on Value Added Tax;
Provincial finance departments shall monitor, inspect, and guide the bookkeeping of old VAT taxpayers and micro-enterprises that need to enter the VAT system, through training and orientation so that business units can organize their own corporate bookkeeping; furthermore, set clear timelines to ensure the approval of VAT refunds;
Provincial tax departments shall study regulations and train tax officers.
Tax authorities from provincial to district levels, in order to strengthen the management of value-added tax (VAT) work efficiently and effectively; provincial and district tax offices must set targets and orientations, methods of collection, deduction, declaration, transfer, refund, and various procedures of the VAT system, for old VAT taxpayers and new micro-enterprises that need to enter the VAT system under their management, to ensure comprehensive coverage and enable them to implement correctly and smoothly by themselves. At the same time, there must be regular monitoring, inspection, and guidance on the implementation of all tasks related to VAT management;
9. Assign the Provincial Budget and Treasury Department to consider approving and disbursing funds related to the refund of value-added tax in a timely manner;
10. Assign the Bank of the Lao PDR, Northern Regional Branch, to encourage commercial banks and other financial institutions to provide financial transaction data of taxpayers and value-added tax withholding agents as requested by the tax authorities as stipulated in the Law on Value Added Tax;
11. Assign the Finance Department to take the lead in coordinating with relevant departments to organize the dissemination of the Law on Value Added Tax and this order to ensure widespread public awareness, and to expand the value-added tax base to be completed throughout the province in accordance with laws and regulations;
12. This order shall take effect from the date of signing;
Bountoune Thajuebphone