VAT Filing and Tax Period

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1 year ago
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Every VAT registered business is required to deposit the VAT collected within a tax period (usually a calendar month as per the Bikram Sambat system i.e. mid of a calendar month to mid of subsequent month as per the Gregorian calendar) to the Inland Revenue Department/Tax Office after adjusting the input VAT credit, and also file a return online at https://taxpayerportal.ird.gov.np/taxpayer/app.html

Due Date

Within 25 days from the end of the tax period.

Implications

If any VAT registered business is not able to deposit the VAT due within the said period of 25 days from the end of tax period, additional fee of 10% per annum (calculated on a daily basis) and interest of 15% per annum (calculated on a monthly basis) on the VAT amount due is charged to the tax payer for the delay.

Zero Return

Even if the VAT registered tax payer has no transaction during the tax period, even then, it is required to file its return.

Tax Period

Tax Period is the period for which the tax payer has to submit the tax return. It is usually a calendar month as per the Bikram Sambat system i.e. mid of a calendar month to mid of subsequent month as per the Gregorian calendar. The VAT returns must be filed for the “tax period” irrespective of the transactions i.e. even if there are no transaction during the tax period, VAT return must be filed. Returns must be submitted within 25 days from the end of the “tax period”.

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