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Value Added Tax (VAT)

At Kar Mitra, we provide professional Value Added Tax (VAT) services to help businesses comply with Inland Revenue Department (IRD) regulations. We support VAT registration, record maintenance, return preparation, and timely filing so businesses can avoid penalties and maintain full compliance.

Crucial Information About VAT

Key Compliance Points

  • VAT shall be levied on the taxable amount of every transaction of goods and services supplied into Nepal, imported into Nepal, and exported outside Nepal.
  • A 13% VAT rate applies to transactions of goods and services other than those listed in Schedule 1 and Schedule 2.
  • VAT returns are normally filed monthly by most businesses. Small taxpayers can apply to file on a trimester (every four months) basis if annual turnover does not exceed Rs. 10 million.
  • Transactions exceeding Rs. 5 million for goods, Rs. 3 million for services, or goods and services within the last 12 months must be registered under VAT. Businesses may also apply for voluntary VAT registration at IRD.
  • A registered person must submit the return for a one-month tax period within 25 days of the expiry of that period. If not filed on time, the penalty is the higher of 0.05% per day of chargeable VAT or Rs. 1,000 per tax period.

Our VAT Service Coverage

  • VAT Registration Assistance
  • VAT Record Maintenance Support
  • VAT Return Preparation
  • Monthly/Trimester VAT Filing
  • VAT Compliance Advisory
  • Penalty Avoidance and Filing Review

Information Required for VAT Return Submission

Document 1

Business details and registration information

Document 2

Purchase register including purchase invoices

Document 3

Sales register with sales invoices

Document 4

Debit notes and credit notes

Document 5

Previous period VAT adjustments (if any)

Document 6

Previous VAT return details

Our VAT Services

VAT Registration Assistance
VAT Record Maintenance Support
VAT Return Preparation
Monthly/Trimester VAT Filing
VAT Compliance Advisory
Penalty Avoidance and Filing Review

Need help with VAT compliance?

Our experts ensure accurate returns, timely submission, and reliable VAT support.

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