Compendium · Asia · Nepal
Nepal: VAT on digital services
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Not supported by the free-threshold API · Local term: VAT
Last verified: 2026-11-03
Non-resident digital service providers face (1) 2% Digital Service Tax on qualifying B2C once annual transactions exceed NPR 3 million (tax on whole value, not added to consumer invoice) and (2) 13% VAT registration when taxable digital supplies exceed NPR 3 million in preceding 12 months — IRD procedures 2081/2023–24 (secondary firm PDFs + IRD hub)
The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
Spot a mistake in Nepal’s rules?
Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.
Threshold and rates (VAT)
- Free threshold?
- No — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
- Amount / measure
- —
— - Window
- No threshold window (from the first sale)
- Standard rate
- —
— - Who must register
- Domestic Nepal VAT registration generally NPR 5m goods / lower for services historically — verify current IRD thresholds; private-to-business qualitative
- Evidence of location
- Indicative only (unverified). No multi-proxy evidence statute located this pass; IRD has dedicated DST/VAT registration pages for non-resident digital services — OECD default (2 non-contradictory) recommended until procedure text opened
- Invoicing
- DST is not added to the consumer invoice (secondary); VAT invoicing follows general VAT rules once registered — verify IRD procedure
- Filing
- —
- Effective
- Region verify 2026-11-03
- Authority
- IRD — DST and VAT registration for NR digital services
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
- Product class
- Digital service
- Support status
- Not supported by the free-threshold API — The live free-threshold API has not merged the proposed rules for this place yet. Unverified fields are indicative only
How to register
- Self-register online?
- See detail — See the authority pages linked in the sources
- Resident representative / fiscal agent
- —
- Regime
- —
Steps (in order)
- —
Documents
—- Official processing time
- — (unverified)
- Official fees
- —
- Portal
- https://ird.gov.np/content/8394/digitalservicetaxdstandvalueaddedtaxvatregistrationfordigitalserviceprovidedbynonresidentperson/
- Local bank account
- —
- Filing frequency
- —
- Payment currency
- —
- Input VAT recovery
- —
- Portal language
- —
- Penalties
- —
Firms offering this service
No verified provider links for this jurisdiction yet. Prefer the official portal and a locally licensed tax adviser.
Region verify
Facts imported on 2026-11-03. Overall confidence: secondary. A field marked indicative is unverified and is not a decision by itself.
| Field | Summary |
|---|---|
| Evidence of customer location | No multi-proxy evidence statute located this pass; IRD has dedicated DST/VAT registration pages for non-resident digital services — OECD default (2 non-contradictory) recommended until procedure text opened (indicative, unverified) |
| Non-resident digital tax | Non-resident digital service providers face (1) 2% Digital Service Tax on qualifying B2C once annual transactions exceed NPR 3 million (tax on whole value, not added to consumer invoice) and (2) 13% VAT registration when taxable digital supplies exceed NPR 3 million in preceding 12 months — IRD procedures 2081/2023–24 (secondary firm PDFs + IRD hub) (secondary) |
| Collect and remit | Non-resident provider remits DST and VAT when registered; no marketplace deemed-supplier detail verified this pass (indicative, unverified) |
| B2C invoice | DST is not added to the consumer invoice (secondary); VAT invoicing follows general VAT rules once registered — verify IRD procedure (secondary) |
| Local payment methods | No published named-rail evidence list (indicative, unverified) |
| Seller located in this place | Domestic Nepal VAT registration generally NPR 5m goods / lower for services historically — verify current IRD thresholds; private-to-business qualitative (indicative, unverified) |
Official sources
IRD — DST and VAT registration for NR digital services
Procedure for Digital Service Tax 2081 (PKF mirror)
Procedure for VAT on digital services by NR (PKF mirror)
Legal500 Nepal digital tax 2025
C.M. & Associates DST note
Last verified: 2026-11-03.
FAQ
- Is this tax advice?
- No. This page summarises region-verify notes for foreign digital sellers. It is not tax or legal advice