Overview of Nepal VAT Supported in Kintsugi

Nepal is officially the Federal Democratic Republic of Nepal, a landlocked country in South Asia and part of the APAC region. Kintsugi supports Value Added Tax (VAT) compliance for businesses selling digital services and SaaS products into Nepal.

What Tax Does Nepal Impose?

Nepal uses a Value Added Tax (VAT) system governed by the Value Added Tax Act, 2052 (1995), administered by the Inland Revenue Department (IRD), which is the central government authority responsible for tax collection and enforcement in Nepal.

In addition to VAT, Nepal imposes a Digital Services Tax (DST) on non-resident businesses that provide digital services to Nepalese consumers. These are two separate tax obligations, and both may apply to your business depending on your situation.

What Kintsugi Supports for Nepal

Kintsugi supports the following for Nepal:

• Nexus monitoring for physical and economic nexus

• VAT registration (new registrations and imports)

• Tax engine calculations for B2B SaaS and B2C SaaS product categories

• Filings for VAT-registered businesses

Tax Identification in Nepal

Nepal uses a Permanent Account Number (PAN) as both the income tax ID and the VAT ID. There is no separate VAT number. Once registered for VAT, your PAN certificate is updated to reflect your VAT status. The PAN follows a standard 9-digit numeric format (e.g., 123456789).

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