Nepal Tax Agency Posts Updated Notice on VAT Procedures for Nonresidents’ Domestic Electronic Service Supplies

The Nepali Inland Revenue Department on Aug. 12 posted online an updated notice on VAT procedures for electronic services supplied in Nepal by nonresident persons from a place of supply in the country. The notice includes: 1) the 13 percent VAT rate applicable to the transactions; 2) the VAT registration threshold of over 3 million Nepali rupees (US$21,437) in taxable electronic services in Nepal in the last 12 months, for nonresident persons; 3) the requirement to register within 30 days of meeting the threshold; 4) the 20,000 rupees (US$142) fine for each instance of a nonresident’s failure to register; 5) ...