- goods threshold
- NPR 50 lakh
- services threshold
- NPR 30 lakh
- to register after becoming liable
- 30 days
- registration fee
- 0
VAT registration in Nepal is free, handled by your Inland Revenue Office or Taxpayer Service Office, and usually quick if the documents are ready. The questions that matter are whether you must register, when, and what to bring.
Who must register for VAT in Nepal?
You must register if your taxable turnover crosses the threshold, either in the past 12 months or as reasonably projected over a rolling 12-month period. Registration is due within 30 days of becoming taxable or starting business.
| Situation | Registration |
|---|---|
| Goods, annual taxable turnover above NPR 50 lakh | Compulsory |
| Services, or goods and services together, above NPR 30 lakh | Compulsory |
| Supplying government offices or VAT-registered businesses | Often required in practice by the buyer. Check the buyer's procurement terms |
| Importing taxable goods worth more than NPR 10,000 at a time | Required |
| Below the threshold | Optional (voluntary registration) |
Trading without registering when you should have is expensive: the tax officer can impose a fine of 50% of the tax involved, and can also order you to register.
Should you register for VAT voluntarily?
Registering below the threshold often makes sense if your customers are VAT-registered businesses or government offices. You can claim credit for VAT paid on purchases, and registered buyers prefer suppliers who issue tax invoices. The trade-off is monthly returns and records. A voluntary registration cannot be cancelled until one year has passed.
What documents are required for VAT registration in Nepal?
Two passport-size photographs of the proprietor, each partner, or the key person designated by the board
Business registration certificate: Office of the Company Registrar for companies, Department of Industry or Cottage and Small Industries for industries, Department of Commerce for trading firms, plus any local level registration
Copies of citizenship certificates of the proprietor, all partners, or all directors; for foreigners, passport or embassy ID
A map of the place of business
Lease agreement for rented premises, or the land ownership certificate
For companies: memorandum and articles of association, and the company power of attorney
Profession or contractor licence where relevant (for example doctors, lawyers, construction)
For joint ventures: the joint venture agreement and the partners' PAN certificates
How do you register for VAT in Nepal, step by step?
Confirm you already have a PAN. One PAN covers both income tax and VAT; you add VAT to it rather than getting a new number.
Prepare the documents above and the prescribed application form.
Apply at your Inland Revenue Office or Taxpayer Service Office. Organisations authorised to issue PANs cannot register you for VAT.
The key person must appear in person. There is no registration fee.
Receive the VAT registration certificate and display it at your place of business.
Put up the registration board: white letters on a green background for VAT-registered businesses, 10 cm by 30 cm.
From the first month, issue tax invoices and file monthly VAT returns within 25 days of month end.
What happens after VAT registration?
Branches in other cities can operate under the same certificate; inform your tax office with the branch lease.
Adding a business line does not need a new VAT number.
Converting a sole proprietorship into a company needs a fresh registration.
If you have filed nil returns for a year, you can apply to deregister.
Figures reflect FY 2083/84 and our Nepal Tax FAQ. If you supply foreign vendors' services, also read TDS on foreign vendor payments. For help registering, filing monthly returns or keeping VAT records clean, see our VAT and tax filing services or talk to our tax consultant in Kathmandu.
*General information only, not advice.*
Frequently asked questions
What is the VAT registration threshold in Nepal for FY 2083/84?
NPR 50 lakh of annual taxable turnover for goods, and NPR 30 lakh for services or goods and services together. Turnover is tested over a rolling 12-month period, looking back or forward.
Is there a fee to register for VAT in Nepal?
No. Registration at the Inland Revenue Office or Taxpayer Service Office is free.
Do I need a new PAN for VAT?
No. One PAN covers income tax and VAT; VAT is added to your existing PAN.
How long do I have to register after crossing the threshold?
Within 30 days of becoming liable or starting business.
Can I cancel a voluntary VAT registration?
Not until one year has passed. After a year of nil returns you can apply to deregister.
When is the first VAT return due?
Monthly, within 25 days of the end of each month, starting from the first month after registration. See our guide to monthly VAT return filing.
