Last updated : 11.05.2026
Expense rules in Laos.
Laos applies VAT at 10% (since 2024, increased from 7%). Southeast Asian country undergoing tax reform.
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1Expense rules & reclaimable VAT
VAT 10% since 2024 (previously 7%). Tax invoice mandatory for VAT-registered companies.
| Category | VAT | Reclaim | Cap / Note |
|---|---|---|---|
| Meals | 10% | Deductible | Tax invoice + TIN |
| Lodging | 10% | Deductible | Company TIN |
| Alcohol | 10% | Limited | Excluded from business meals |
| Fuel | 10% | Deductible | Tax invoice |
| Transport | 10% | Deductible | Taxi/airfare |
| Client gifts | 10% | Non-deductible | Strict cap |
Receipt
Tax invoice
TIN mandatory
Meal cap
<= LAK 350,000/pers
Above: justify
SourcesLaos Tax Department
2Mileage allowance
No official mileage scale. Actual reimbursement on receipts.
| Mode | Allowance | Cap | Note |
|---|---|---|---|
| Personal car | – | Fuel + tolls | On receipt |
| Company car | – | Fuel card | – |
| Taxi/Loca | – | 100% on receipt | Receipt required |
Tracking
Logbook
Date, distance, purpose
SourcesLaos Tax Department
3Per diem and travel allowances
No official tax per diem. Company policy by city: Vientiane the most expensive.
| Destination | Meal | Lodging / night | Daily rate |
|---|---|---|---|
| Vientiane | LAK 200 000 | LAK 700 000 | LAK 1 200 000 |
| Luang Prabang | LAK 180 000 | LAK 600 000 | LAK 1 000 000 |
| Pakse | LAK 150 000 | LAK 500 000 | LAK 850 000 |
| Other cities | LAK 130 000 | LAK 450 000 | LAK 750 000 |
Conversion
~1 EUR = 23,000 LAK
Variable
SourcesLaos Tax Department
4Foreign VAT recovery
VAT recovery limited to resident companies via monthly return. No non-resident recovery.
| Zone | Mechanism | Deadline | Method |
|---|---|---|---|
| Resident companies | VAT credit | Monthly (15th) | VAT return |
| Non-resident companies | None | – | Final cost |
| Special zones | Incentives | Per approval | SEZ regime |
Statute of limitations
3 years
Keep invoices
SourcesLaos Tax Department
Centralize your Laos expenses
Illizeo handles tax invoices, LAK/EUR conversion and VAT compliance for your teams in Laos.
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