The provision of a 10% VAT refund when purchasing goods and services through electronic means is slated to take effect.
The programme of VAT return on electronic purchases was introduced into the budget for fiscal year 2076-77 by then Finance Minister Yubaraj Khatiwada. With effect from Paush 25, 2076, the Inland Revenue Department (IRD) adopted a process to refund VAT to consumers who make payments through electronic means.
IRD has moved forward with implementing the 10% VAT return provision on electronic payments after 19 months of writing the procedure. IRD has issued a notice today urging businesspeople, consumers, and stakeholders to execute it.
Taxpayers can register for VAT and join the department’s approved system of generating electronic invoices. The department has asked that vendors who accept payments using electronic payment methods such as debit/credit cards and QR codes restore 10% of VAT to the customer’s bank account automatically.