12.2. VAT on the Supply of Services by Non-Residents
A non-resident supplying service from a fixed place of business in Nepal is required to register for and pay VAT.
The supply of services by a non-resident without a fixed place of business is subject to a reverse charge in the hands of the service recipient.
Digital Supplies
Effective 29 May 2022, the supply of electronic services by a non-resident without a fixed place of business in Nepal is subject to VAT at the standard rate.
Electronic services mean services delivered via electronic or digital means or similar networks, whose supply is essentially automated, involves minimal human intervention and is impossible to deliver in the absence of information technology.
Electronic services include:
- Advertisement services;
- Cinema, Television, Music, Over the Top (OTT) services, and other membership-based services;
- Data collection services;
- Cloud services;
- Services related to games;
- Mobile application services;
- Online market-related services;
- Supply and update of software;
- Downloading services including image and data download;
- Training, skill development, and consultancy services; and
- Services of similar nature.