Nepal Tax Agency Explains Procedure for VAT on Digital Services by Nonresident Taxpayers

The Nepali Inland Revenue Department July 25 explained procedures relating to VAT on digital services provided by non-resident taxpayers. The tax agency clarified: 1) specific definitions, including ‘digital services’ and ‘transaction'; 2) the applicable 13 percent VAT rate; 3) VAT registration requirements and procedures including the 20,000 Nepalese rupees (US$157) fine for failure to register; 4) the electronic filing requirement for non-residents; 5) the daily fine of 0.05 percent of the taxable amount or 1,000 rupees (US$8) per tax period for failure to submit a tax return; 6) the 15 percent interest charge and an additional fee of 10 percent ...