9 September 2024, Kathmandu
The Nepal government has reintroduced the 10% VAT refund scheme to promote electronic payments. Under this scheme, consumers can receive a 10% refund on VAT when making payments via electronic means at businesses like bars, restaurants, hotels, motels, and guesthouses.
VAT Refund on Electronic Payments: A Step Towards Improvement
According to Ram Prasad Acharya, the Director General of the Internal Revenue Department, this initiative aims to improve the tax collection system and bring more sectors under the tax network. It is expected to strengthen the billing system and encourage consumers to adopt electronic payment methods.
To implement this system, consumers can use debit/credit cards, QR codes, or mobile banking as payment options. This move not only promotes electronic transactions but also aims to enhance business transparency.
The provision is designed to encourage consumers to demand receipts for purchases, which is expected to contribute to increased tax revenue. Registered businesses are being incentivized to conduct transactions electronically, which will further integrate them into the formal tax system.
By focusing on digital payments, this policy supports the government’s vision for a more accountable and efficient economy.
For more: Nepal Reintroduces VAT Refund
