Myanmar – indirect tax guide

Myanmar – indirect tax guide

Explore the requirements and rules that apply to indirect taxes in Myanmar.

White temple with clouds behind


Type of indirect tax:

Commercial tax.

Standard rate:

Generally, a 5 percent standard rate applies to most products and services. Commercial tax on certain items (such as inbound air travel, real estate, gold jewelry and electricity) ranges from 1 percent to 8 percent.

What supplies are liable to the standard rate?

Goods and services supplied in Myanmar and the importation of goods from abroad, with the exception of those mentioned above.

Are there any reduced rates, zero- rates or exemptions and if so, what do they apply to?

There are certain products, including basic food and medicines that are exempt. In addition, certain services, such as contract manufacturing, educational services, financial services and public transportation, are also exempt. Exports of goods are generally zero-rated.

VAT/GST registration

Who is required to register and what is the threshold?

Anyone (personal, self-employed and company) carrying out production/manufacturing and services in the jurisdiction and importing goods into the jurisdiction. Sales below 50 million Myanmar Kyat (MMK) per year would not be subject to commercial tax.

Is voluntary registration possible?

Not applicable.

Is voluntary registration available for an overseas company or a fiscal representative?


VAT/GST compliance

What is the typical frequency of returns?

The annual return is required within 3 months of the end of the fiscal year. Quarterly returns are required within 1 month of the end of each quarter. Monthly payment is required based on actual revenue within 10 days.

VAT/GST recovery

Are there any items that a registered business cannot recover commercial tax on?

Capital items and certain restricted items.

Can an overseas company recover commercial tax if it is not registered?


How long does it typically take to obtain a commercial tax refund following a return filing?

Input commercial tax in excess of output commercial tax will not be refundable.


Are there specific requirements for the content of invoices to be considered valid for commercial tax purposes?

According to Notification 104/2012 commercial tax rules, invoices should contain the following information:

  • enterprise registration number issued under the commercial tax regulation
  • the buyer’s name, address and enterprise registration number issued to him or her under the commercial tax regulation (if the buyer of the good is an owner of the enterprise)
  • date of sale, description of goods, category, quantity, unit price and selling price
  • commercial tax due on the proceeds of sale.

Special indirect tax rules

Does a reverse charge or indirect tax withholding mechanism apply?

Not applicable.


Is it possible to apply for formal or informal advance rulings from the tax authority?

There are no specific laws and regulations on this. However, in practice, it may be possible to seek a ruling from the Internal Revenue Department.

Other indirect taxes

Are there any other indirect taxes that apply in the jurisdiction?

Other indirect taxes include the following:

  • stamp duty
  • customs duties
  • property tax.


Thomas Chan
KPMG in Myanmar
T: +95 9975068076

* By ‘grouping’ we mean: either a consolidation mechanism between taxpayers belonging to the same group (payment and refund are compensated but taxpayers remain distinct) or a fiscal unity for VAT/GST purposes (several taxpayers are regarded as a single taxpayer).


All information within this guide is provided by KPMG professionals in Myanmar and based on information available as of September 2019.

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