Kathmandu: The government has introduced modifications to the current Value Added Tax (VAT) submission regulations for taxpayers in Nepal.

Under the revised regulations, companies engaged in transactions exceeding Rs 10 million are now required to remit their VAT on a monthly basis. On the other hand, businesses with transactions below Rs 10 million will remit their VAT every quarter, according to a statement from the Inland Revenue Department.

This change stems from an alteration to Rule 26 of the VAT Regulations, 2053 BS. Effective from the commencement of this fiscal year, specific industries such as brick factories, hotels, tourism, and the film industry must now adhere to monthly VAT submissions.

Furthermore, enterprises with an annual business turnover of less than Rs 10 million are permitted to submit their VAT payments on a quarterly basis.

These changes are aimed at streamlining VAT payment procedures and aligning them with the scale of business operations. The adjustments aim to simplify the taxation process for different tiers of businesses while enhancing overall tax compliance.