Nepal VAT registration threshold
Nepal VAT registration threshold is 5000000 NPR, in force since 16 Jul 2024. Last checked against the official source on 10 Aug 2026.
The turnover at which VAT registration becomes compulsory in Nepal (goods; a lower limit applies to services and mixed dealings), with the period the test runs over, the rule for non-established suppliers, and the separate registration rule for imported digital services.
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What this value means
PERIOD BASIS: taxable transactions over the LAST TWELVE MONTHS (विगत बाह्र महिनामा) — a rolling window, not the Shrawan-Ashad fiscal year. Registration must be applied for within 30 days (s.10(2)). Dual threshold: NPR 5,000,000 (पचास लाख) where the dealing is in goods only; NPR 3,000,000 (तीस लाख) where it is in services only OR mixed goods-and-services — the recorded value is the goods figure, and the 3,000,000 limb catches most service businesses. The 50-lakh goods figure dates from Finance Act 2073 (2016); the services/mixed figure moved 20→30 lakh by Finance Act 2081, in force 16 July 2024 (2081-04-01 BS). VAT rate 13%; monthly returns due within 25 days of each Nepali month-end. Deregistration mirrors the thresholds (s.11(1)(च)). IRD directives additionally compel VAT registration irrespective of turnover for prescribed dealings (e.g. liquor, and listed trades within metropolitan/sub-metropolitan areas) — directive-level, verify per sector before relying on the threshold alone. NON-ESTABLISHED SUPPLIERS: s.10ख1 (10Kha1) of the Act: "यस ऐनमा अन्यत्र जुनसुकै कुरा लेखिएको भए तापनि नेपालमा विगत बाह्र महिनामा तीस लाख रुपैयाँभन्दा बढी कर लाग्ने विद्युतीय सेवा वा अफलाइन हवाई यातायात सेवाको कारोबार गर्ने गैरबासिन्दा व्यक्तिले मूल्य अभिवृद्धि करमा दर्ता हुनु पर्नेछ" ('notwithstanding anything elsewhere in this Act, a non-resident person who in the past twelve months has transacted more than thirty lakh rupees of taxable electronic services or offline air-transport services in Nepal must register for VAT'). Registration procedure is as determined by the Department (online, through the Large Taxpayer Office; PAN issued; returns monthly by the 25th; NPR 20,000 penalty per period for failure to register). Other non-residents with no Nepali digital/air-transport supplies are not caught by 10ख1; imports of goods are taxed at customs, and B2C/B2B imported non-electronic services are handled by assessment on the recipient (reverse-charge under s.8). IMPORTED DIGITAL SERVICES: covered by the s.10ख1 regime above — threshold NPR 3,000,000 (तीस लाख) of taxable electronic services to Nepali consumers in the trailing 12 months. "विद्युतीय सेवा" is defined in s.2(ट2) (essentially automated services delivered over the internet with minimal human intervention: advertising, streaming/OTT, data collection, cloud, gaming, mobile apps, online marketplaces, software supply and updates, downloads, consulting/training and the like). Introduced by Finance Act 2079 (2022) at NPR 20 lakh; Finance Act 2081 (16 July 2024) raised it to 30 lakh and extended the regime to offline air-transport services. The separate 2% Digital Service Tax (a turnover tax under the Finance Act, administered per the DST procedure) has its own de-minimis and annual filing — it is NOT the VAT threshold. Traps: (1) Dual threshold — applying the 50-lakh goods figure to a service or mixed business is wrong; mixed dealings take the LOWER 30-lakh limit. (2) The services/mixed figure was 20 lakh until 16 July 2024 — guides predating Finance Act 2081 are stale. (3) The non-resident e-services threshold also moved 20→30 lakh at the same time; most international summaries still say NPR 2,000,000. (4) The registration-side amount is technically "तोकिएको" (as prescribed) under s.9 with the amounts prescribed in VAT Rules 2053 r.7 — the figures quoted here verbatim sit in the Act's deregistration ground s.11(1)(च), which Finance Acts amend in lockstep; both places must be checked after each आर्थिक ऐन. (5) The window is the trailing 12 months, not the fiscal year. (6) The 2% DST and 13% VAT on non-resident digital services are separate levies with separate procedures — paying one does not satisfy the other (DST paid excludes income tax, not VAT). (7) Directive-based compulsory registration (sector/location lists) bypasses the threshold. (8) Nepali dates govern: Finance Acts take effect from Shrawan 1 (mid-July) or the budget's stated dates — converting to Gregorian carelessly misdates the change by up to a year.
Get it programmatically
curl https://asiaref.dev/v1/np/vat-registration-threshold
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# History: curl https://asiaref.dev/v1/np/vat-registration-threshold/history?from=2020-01-01
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