Refund under VAT

Refund of Excess ITC

Registered person may file an application for lumpsum refund of amount of excess left after offsetting the input tax credit for a continuous period of 4 months. For a person exporting more than 40% in a month may file for such refund in that month itself.



Refund in other cases

• Amount paid by a diplomat in Nepal, of a foreign country, regional international commission, or institution if such foreign country regional international commission grants on reciprocal basis tax exemption privileges to nepali diplomat.(Should be more than 10,000)
• Tax paid by diplomatic institution on recommendation of MOFA. (Should be more than 10,000)
• United Nations and Specialized agencies while working as per their objectives.
• Tax paid by international institutions for which GON has granted exemption
• Project concluded in Nepal under a bilateral or multilateral agreement for which GON has provided exemption.
• Tax amount recovered by mistake



Refund to be made only to those person who has borne the real burden of tax.



Refund for Tourist

Available to a tourist visiting Nepal and returning by Airway. If such individual purchases goods of more than 25000, the tax paid on such goods shall be refunded. 3% shall be deducted as service fee





Refund for contract.

when a public entity enters in a contract with a contractor for a supply of goods and services, the public entity deposits 50% of the VAT on behalf of the Contractor, such deposit can be used as ITC by the contractor. if such ITC remains unused for a continuous period of 4 months, such can be claimed as refund.



Refund by Pharma

Pharma industries can apply for refund at an interval of 4 months for raw material, auxiliary raw materials, packing materials purchased from domestic industries.



Application for refund shall be made within 3 years from the date of end of tax period.