- Nepal’s Inland Revenue Department said the new electricity VAT applies only to power consumed from July 1, 2026 onward.
- The clarification followed complaints after VAT was wrongly added to July bills for electricity used in mid-June to mid-July.
- The new rules impose 5% VAT on households using more than 50 units and 13% on industrial and commercial users.
- Electricity use below 50 units remains tax-exempt.
- Any VAT collected in error will be corrected in the next billing cycle.
Source: news.bloombergtax.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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