An Overview of Value Added Tax (VAT) in Nepal
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An Overview of Value Added Tax (VAT) in Nepal at Rajiya Law Associates
An Overview of Value Added Tax (VAT) Regulations in Nepal
VAT is a consumption tax levied on the import, production, and distribution of taxable goods and services in Nepal.
1. Registration Thresholds
Businesses with annual turnovers exceeding NPR 5 Million (for goods) or NPR 2 Million (for services) must register for VAT at the Inland Revenue Department.
2. Invoicing and Input Tax Credit
VAT-registered firms must issue serialized tax invoices and can claim input tax credits on purchases used for business operations.
3. Monthly VAT Returns
Returns and payments must be submitted within 25 days of the following Nepalese calendar month to avoid late filing penalties.
Rajiya Law Associates provides VAT compliance advisory, represents clients during tax audits, and defends against VAT assessments.
Our legal associates offer end-to-end consultancy and litigation services in this sector. We assist with regulatory filings, compliance audits, dispute resolution, and contractual drafting to safeguard our clients' interests.