From 1 January 2022, the Southeast Asian country of Laos imposed VAT on the sale of e-services to local consumers by non-resident businesses.
Prior to January 2022, non-resident businesses providing digital services in Laos did not have to charge VAT on their sales. However, to remove the unfair advantage this gives to non-resident companies over resident providers, the local tax authorities confirmed that VAT will be charged at 7% on these types of transactions.
This new tax requires foreign providers of electronic services to register if they exceed a 12-month threshold of LAK 400 million (approx. £26k) and will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals, software, and internet services.