What is the VAT rate in Nepal?

The standard VAT rate is 13%, with exports zero-rated; a separate 2% Digital Service Tax applies to non-resident digital-service income.

What is the VAT registration threshold?

Domestic registration is required above NPR 5,000,000 for goods or NPR 3,000,000 for services; non-resident digital providers register above NPR 3,000,000 over 12 months.

Is SaaS taxable in Nepal?

Yes. SaaS supplied to Nepali consumers is subject to 13% VAT, and the non-resident provider may also owe 2% Digital Service Tax.

What must a non-resident digital seller do?

Obtain a PAN and register for VAT once sales to Nepali consumers exceed NPR 3,000,000, charge 13% VAT, file monthly, and file DST annually.

When are Nepali VAT returns due?

Monthly, by the 25th of the following month on the Bikram Sambat calendar; the Digital Service Tax is filed annually.

What is the penalty for late Nepali VAT?

Late payment carries 15% annual interest plus additional fees, and late or non-filing draws per-return penalties that compound monthly.

Nepal VAT Guide for 2026: Rates, Registration & Compliance

Nepal applies a 13% VAT on most goods and services. This guide covers registration thresholds, invoicing rules, and monthly return filing for resident and nonresident sellers.

Last updated19 July 2026

Key Takeaways

Nepal's VAT is a single standard rate of 13% on most goods and services, with exports zero-rated and basic agricultural products, health, education, and financial services exempt. A business registers once annual turnover exceeds NPR 5 million for goods or NPR 3 million for services, and non-resident providers of digital services to Nepali consumers must register separately and charge 13% under the non-resident VAT regime. SaaS and digital services are taxable at 13% VAT, and the non-resident provider may also owe a separate 2% Digital Service Tax.

Taxability Snapshot

SaaS

Taxable

Digital Goods

Taxable

Sales Tax Rates

Nepal's Value-Added Tax (VAT) is a single standard rate of 13% on most goods and services, administered by the Inland Revenue Department (IRD) under the VAT Act 2052. Exports are zero-rated, and basic agricultural products, health, education, and financial services are exempt [1]. A separate 2% Digital Service Tax (DST) applies to non-resident digital-service income as a direct tax, distinct from VAT [2].

Rate	Applies to
Standard 13%	Most goods and services, including non-resident digital services
Zero 0%	Exports of goods and services
Exempt	Basic agriculture, health, education, financial and insurance services

For more detail, see our APAC VAT guides.

Nepal VAT Calculator

Choose a rate

Nepal · VAT

Standard rate 13%All taxable goods and services; there are no reduced rates.

Rates as of August 2026. Source: IRD Nepal: VAT Act 2052 (opens in a new tab).

Nepal · Standard rate

13%

VAT rate

Add VATRemove VAT

Price before VAT (NPR)

Enter an amount to see the tax and total.

This is an estimate. Whether a sale is taxable, and at which rate, depends on what you sell, who you sell to and where it's supplied. If you intend to rely on these rates, please use the Kintsugi platform.

Registration & nexus threshold

Nepal uses VAT registration thresholds, not US-style economic nexus. A business must register for VAT once annual turnover exceeds NPR 5 million for goods, or NPR 3 million for services and for mixed goods-and-services [1]. Non-resident providers of digital services to Nepali consumers must register for VAT and charge 13% under the non-resident VAT procedure; a separate 2% Digital Service Tax also applies to non-residents whose annual digital-service transactions in Nepal exceed NPR 3 million [2][3]. Registration steps are in the How to Register section.

Filing frequency & deadlines

VAT returns are filed monthly, with the return and payment due by the 25th of the following month on Nepal's Bikram Sambat calendar. Foreign-currency receipts are converted to rupees at the Nepal Rastra Bank rate on the filing date. The Digital Service Tax is filed annually on the income-tax basis [2][3].

Exemptions

Exports are zero-rated, and Schedule-1 exemptions cover basic agricultural products, medical and health services, education, and financial and insurance services [1]. SaaS and digital services supplied to Nepali consumers are taxable at 13% VAT, and the non-resident provider may also owe the 2% Digital Service Tax [2].

Penalties

Late payment of VAT accrues interest at 15% per year plus an additional fee, and late or non-filing carries per-return penalties that compound each month until compliance [1]. Failing to register when required draws a further fixed penalty per tax period [1].

Sources

Verified July 2026 against Inland Revenue Department (Nepal) guidance.

Frequently asked questions

Ready to automate your sales tax?

No credit card required.

Book a Demo Sign Up