When do I need to register for VAT in Nepal?
मूल्य अभिवृद्धि करमा कहिले दर्ता हुनुपर्छ?
Register for VAT in Nepal once turnover passes Rs 50 lakh for goods or Rs 30 lakh for services. Where to apply, the 30-day rule and 2083/84 changes.
- Cost
- Free
- Registration itself has no fee. The standard VAT rate is 13%.
- How long
- Apply within 30 days
- Of starting taxable sales or crossing the threshold.
- Where
- Inland Revenue Office or Taxpayer Service Office
- Last checked
- 8 Oct 2026
- Against the official source
What it is
Value added tax (मूल्य अभिवृद्धि कर) is charged at 13% on most goods and services in Nepal. Once your business is registered, you add VAT to your sales, claim back the VAT on your business purchases and pay the difference to the Inland Revenue Department.
The registration thresholds were set in 2081 at Rs 50 lakh a year for goods and Rs 30 lakh for services or mixed businesses, and the 2083/84 budget didn't change them. What it did change: ride-sharing transport and household electricity above 50 units now carry VAT at a reduced 5%, and the government can now set more than one VAT rate, up to 13%, by notice in the Gazette.
Who needs it
- Businesses selling goods, or goods and transport services, with annual turnover above Rs 50 lakh.
- Businesses selling services, or a mix of goods and services, with annual turnover above Rs 30 lakh.
- Smaller businesses can register voluntarily, for example because their business customers want VAT invoices.
What you need
- Official
Your business PAN
- Official
Firm or company registration certificate
- Official
Proof of your business premises
Ownership papers or a rent agreement.
- Official
Citizenship of the owner, partners or directors
- Official
Printed VAT registration application from the taxpayer portal
How it works
- 1
Check whether you've crossed the threshold
Add up your sales over the last twelve months. If they're above Rs 50 lakh for goods or Rs 30 lakh for services or a mix, you have to register.
- 2
Apply online
On the IRD taxpayer portal go to Registration (PAN, VAT, Excise) and apply for VAT on your existing PAN.
- 3
Verify at the tax office
Take the printout and documents to your Inland Revenue Office or Taxpayer Service Office. Chambers of commerce that issue PANs can't register you for VAT.
- 4
Start charging VAT
Issue VAT invoices for every sale and keep purchase invoices so you can claim back the VAT you paid.
- 5
File returns every month
File a VAT return for each period even when you had no sales. Report changes to your registration details within 15 days.
Where to go
Inland Revenue Office or Taxpayer Service Office
VAT registration and returns
IRD Taxpayer Portal
taxpayerportal.ird.gov.np
Find the nearest Tax office
Straight-line distance. Directions open in Google Maps.
Cost and time
- Official fee
- Free
- Registration itself has no fee. The standard VAT rate is 13%.
- Processing time
- Apply within 30 days
- Of starting taxable sales or crossing the threshold.
| Service | Fee |
|---|---|
| Goods, or goods and transport servicesAnnual turnover above which you must register | Rs 50 lakh |
| Services, or a mix of goods and services | Rs 30 lakh |
| Standard VAT rate | 13% |
| Ride-sharing transport services (from 2083/84)Collected by the platform operator | 5% |
| Household electricity above 50 units a month (from 2083/84) | 5% |
Common problems
My turnover is under the threshold. Should I register anyway?
Only if it helps you. Business customers who claim VAT often prefer suppliers who issue VAT invoices. Once registered, you have to file returns every period whether or not you sell anything.
I sell both VAT-exempt and taxable goods.
Count your taxable sales for the threshold. If you sell taxable goods or services, you apply within 30 days of starting those sales.
Can I get VAT refunded?
Usually you offset VAT paid on purchases against VAT you collect. Refunds are paid in specific cases, such as exporters selling more than 40% abroad or credit that can't be offset for four months in a row.
Do I still pay income tax if I'm VAT registered?
Yes. VAT is separate. VAT-registered businesses can't use the fixed D01 presumptive tax and file a normal income tax return instead.
Real experiences
Been through this recently? Tell the next person which office you went to and what they asked for. Reports are published as community notes, apart from the official information.
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