VIENTIANE (Laotian Times): Starting from August 1, this year, digital platforms like Google, Facebook, and Amazon will enforce a 10 per cent value-added tax (VAT) on customers in Laos, following the country’s VAT increase from 7 per cent.
The three major platforms have been notifying users about the upcoming changes. This VAT adjustment will affect various services involving customer purchases on these platforms.
Before the changes take effect, users are required to provide their Laos Tax Identification Number (TIN) to update their information. Once updated, the platform’s TIN will be reflected on their invoices.
The VAT increase, first announced in March, is part of broader efforts to enhance state budget revenue and support economic and social development.
The increase will also apply to a range of transactions, including imports, goods, general services, mineral imports and supply, and electricity usage.
For the past two years, Laos has maintained a VAT rate of 7 per cent.
However, given the country’s current economic challenges, international experts and organizations, such as the World Bank, recommended returning to a 10 per cent VAT rate to prioritize tax collection and replenish the state budget.
After enduring economic turmoil for the past two years, Laos has implemented various measures to address these issues, but with limited success.
On July 15, Lao President Thongloun Sisoulith directed the government to take decisive action to halt the economic challenges, particularly the soaring inflation rate and the ongoing depreciation of the Lao kip currency.
The president recommended increasing foreign reserves, curbing non-essential imports to stabilize the economy, and urging debt collection and asset auctions to enhance financial integrity. - Laotian Times
