This blog is useful for new businesses or startups who have incorporated their business and whose turnover has increased and are in dilemma what are the criteria to get registered in VAT from the taxation laws point of view. We all know that the company should obtain a Permanent account number (PAN) before commencing its business from the tax office where the business is located. If the business has reached the threshold of turnover or it is compulsory to be registered in VAT, the registered person should get registered in VAT within 30 days of obtaining such threshold.

Let’s discuss, what are the conditions to be registered in VAT which is also known as threshold. The threshold for VAT registration is presented below:

 Implications after getting registered in VAT 

The business (registered taxpayer) should file the VAT return within 25 days after the completion of the month in general but the tax department has implemented a new filing period for small and micro businesses.

In case of failure to file of VAT return by the business, the tax department imposes fines and penalties based on the turnover of the business during the filing period.

Please Note: Estartup Nepal is offering free VAT Returns for Micro businesses registered in VAT.