Penalties (Nepal)
The Nepalese VAT system contains a number of penalty provisions designed to encourage compliant behaviour from taxpayers. In addition, the penalties are geared towards encouraging taxpayers to take reasonable care in the process of fulfilling their obligations under the VAT system.
The major penalties and interest levied in Nepal under the VAT Act are as follows:
| Offence | Penalties |
| Failure to register for VAT | NPR 20,000 per tax period |
| Carrying out taxable transactions without registering for VAT | 50% of the total taxable amount |
| Late filing of a VAT return | NPR 1,000 per tax period or |
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Web page updated on 17 Mar 2025 15:11