Nepal Introduces 5% VAT on Ride-Sharing Service Providers

• Nepal’s Inland Revenue Department issued a public notice imposing 5% VAT on transport and delivery services provided through ride-sharing platforms such as Pathao, inDrive, and Yango, effective Shrawan 1 (17 July 2026), under amendments introduced through the Economic/Finance Act 2083, to bring the sector into the tax net. [english.ne…lviews.com], [linkedin.com]
• Platforms must collect 5% VAT from riders (drivers) at each transaction, issue tax invoices on their behalf, and deposit the collected tax with the revenue office by the 25th day of the following month. This collected VAT is not treated as platform income, and no input tax credit is allowed. [english.ne…lviews.com], [fiscalnepal.com]
• Platforms must continue charging the existing 13% VAT on commissions and service fees to riders. Every rider affiliated with a platform must obtain a Permanent Account Number (PAN), though individual riders are not required to register separately for VAT under the new arrangement. [english.ne…lviews.com], [fiscalnepal.com]

Sources: Nepal Views · Fiscal Nepal