Value added tax (Nepal)

Value Added Tax (VAT) is an indirect tax levied on the value creation or addition. Concept of VAT in Nepal was introduced in FY 2049/50 but the act was developed in BS 2050. VAT was implemented in 1998 and is the major source of government's revenue. It is administered by Inland Revenue Department of Nepal.

VAT Rates in Nepal

There are two rates of VAT: Normal VAT rate is 13%, some goods or services are subject to VAT at 0%. In addition some goods or services are exempt from VAT.^[1]

References

1. VAT Act, 2052