- Nepal’s IRD introduced a new VAT directive for electricity services in 2083.
- Household users pay no VAT on up to 50 units per month, and 5% VAT on usage above 50 units.
- Commercial, industrial, and institutional consumers must pay 13% VAT on all electricity consumption.
- B2B electricity sales, including developers to NEA, are exempt to avoid double taxation.
- Businesses with taxable electricity transactions over Rs 3 million in 12 months must register for VAT, issue e-invoices, and file monthly returns within 25 days.
Source: giwmscdnone.gov.np
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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