What exactly is VAT?How Do I Register My Business For VAT In Nepal?

Value-added tax (VAT) was implemented on March 20, 1996, with the passage of the new Value Added Tax Act, 2052. (1996).

VAT (The value-added tax) is an indirect tax or consumption tax levied on goods and services. The tax will be imposed on the aggregate value of all taxable goods and services transactions. It must be paid at every point along the supply chain, from the manufacturer to the retailer. It can also refer to a general taxation system in which people in an economy are taxed based on what and how much they consume. In other words, people are taxed based on how much value they add to the economy.

As a result, VAT is a tax levied based on the value they have added from the consumption of people at various stages the product or service passes through.