VAT on Air Travelling

 

Introduction of VAT on Airlines Services (Air Travelling)

 

Finance Act, 2080 introduces VAT on Air Travel by removing it from the list of VAT exempted items as in Schedule 1 of the VAT Act.

 

 

( Notice by IRD published on 2080/03/11)

Application for Registration shall be given by filling an online form

 

An application for registration under VAT shall be given (online form).
Foreign company (Airlines) shall submit an operating license issued by respective authority.

 

Credit of Input VAT on Purchases

 

If there is any Stock/ Inventory item on which VAT had been paid credit can be claimed by filling up a form Annexure - 16, for any item which was purchased within previous 12 months of date of registration.
Such form shall be filled within 15 days of registration into VAT.

 

VAT Invoice to be issued

1. Amount Charged by Airlines Service Company	XX
2. Add: Add: Profit Margin (commission)	XX
Total	100
3. Add: Value Added Tax (VAT)	13
Total	113

Internal Travelling (within Nepal)

 

 All internal airlines' services collect VAT on ticket price.