What is VAT (Value Added Tax)?
मूल्य अभिवृद्धि कर
VAT is Nepal's value added tax, charged at a single standard rate of 13% on most goods and services. It is collected at each stage of sale and ultimately borne by the final consumer. Some goods (basic food, etc.) are VAT-exempt or zero-rated.
VAT was introduced in Nepal in 1997 under the VAT Act 2052. The standard rate is 13%. Businesses must register for VAT once turnover crosses the threshold (broadly Rs 50 lakh for goods, Rs 30 lakh for services / mixed).
Registered businesses charge VAT on sales (output) and reclaim VAT on purchases (input), remitting the difference to the IRD.
Sources & data note
Definitions explain standard Nepali terms in everyday and official use. Land-unit conversions follow the standard Nepali measurement system; tax and contribution rates reflect current law (Income Tax Act 2058, VAT Act 2052, Social Security Act 2074) and are revised each fiscal year by the Finance Act — always confirm current-year figures with the relevant authority.