VAT ON

TRANSPORTATION
SERVICE

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AMENDMENT AS PER FINANCE ACT 2080

FY 2079

FY 2080
Registration in VAT Rule 6(1)
Notwithstanding anything mentioned in Rule 3, any
person carrying out transactions of goods, transport
vehicle on rent or transport service not exceeding 5
million rupees and for service or mix of Goods and
services not exceeding 2 million rupees within the last
12 months as set forth in section 9 of the Act need
not have registered transactions. Such small vendor
shall fix a notice in the place showing to all stating
VAT registration is not required due to transactions of
goods, transport vehicle on rent or transport service
not exceeding 5 million rupees and for services or mix
of goods and services not exceeding 2 million rupees.

Provided, any person who imports into Nepal goods,

transport vehicle on rent or transport service valued
more than 10000 except for self consumption of goods
within Nepal by person doing tax exempt transaction
have to get registered.
Registration in VAT
Registration in VAT

Rule 7(1)
In case any person has reason to presume that his
transactions of goods, transport vehicle on rent or
transport service shall exceed Rs 5 million or
transaction of mixed goods and services or transaction
of services shall exceed Rs 2 million in coming year, he
shall submit an application setting out such conditions
to the concerned tax officer in the format as set
forth in Schedule 1 for the registration of the
transactions.
Registration in VAT

Rule 7(2)
If the amount of transactions carried out by any
person of goods, transport vehicle on rent or
transport service shall exceed Rs 5 million or
transaction of mixed goods and services or transaction
of services shall exceed Rs 2 million in the absence of
conditions where presumption could not be made as set
forth in sub rule 1, the person carrying out such
transactions shall submit an application to the
concerned tax officer in the format set forth in
Schedule 1 for registration of the transactions within
30 days of the date on which such excess occurs.
Registration in VAT
Registration in VAT
Registration in VAT
Tax invoice to be issued
Sec 8(2Ka) : Provision regarding transport
service
Any registered or unregistered person obtaining
transport vehicle on rent or transport service
from an unregistered person shall assess and
recover tax on the taxable amount in accordance
with this act or rules framed under this act at the
time of payment or receive of service whichever
occurs earlier.
Tax return