Nepal's 5% VAT on ride-sharing and on electricity to end consumers applies from 17 July 2026 (Finance Act 2083)

What changed in detail

Nepal’s Finance Act (Arthik Ain) 2083, Act No. 10 of 2083, was published in the Nepal Gazette (Part 2, Volume 76, Extraordinary No. 29) on 30 Asar 2083, which is 14 July 2026.

Section 55(1)(Ka) of the Act inserts a new sub-section (1Kha) into section 7 of the Value Added Tax Act 2052. Under it, a resident ride-sharing operator must assess and collect VAT at 5 per cent of the taxable value when transacting with the drivers affiliated to its platform who provide transport and delivery services. The same sub-section applies the 5 per cent to persons supplying electricity services to end consumers.

Section 1(2) of the Act brings sub-clause (1Kha) into force from Shrawan (Saun) 1, 2083 — 17 July 2026 — rather than on publication. Most other sub-sections of section 55 took effect immediately.

The Inland Revenue Department decided on 2083/03/31 (15 July 2026) to issue a public notice on VAT in ride-sharing services. The notice is dated 31 Asar 2083.

This corrects the earlier record, np-vat-section-7-1kha-2026. That record gave 15 June 2026 as the effective date and converted the IRD decision date of 2083/03/31 to about 14–15 June 2026. It also did not state the 5 per cent rate, the electricity limb, or the separate commencement date. The correct dates are 14 July 2026 for publication, 15 July 2026 for the IRD decision and 17 July 2026 for commencement.

What it means

For ride-sharing operators the date that matters is 17 July 2026, not June. Collection systems and reconciliations built around a June start should be checked: fares before 17 July fall outside the new sub-section.

The electricity limb is easy to miss, because the sub-section reads as a ride-sharing provision. A supplier of electricity to end consumers is covered by the same 5 per cent rule and should check its billing.

Bikram Sambat dates convert to slightly different Gregorian dates each year. Anchor compliance calendars to the gazette date rather than to a rule of thumb.