VAT on Transportation Directice from IRD

The Ministry of Finance has introduced a new directive concerning Value Added Tax (VAT) on transportation services, authorized under Rule 61 of the VAT Rules, 2053.

Framed by the Inland Revenue Department, this directive was established to achieve the following:

• Improve Compliance: Promote adherence to existing tax laws.

• Simplify Procedures: Streamline the current arrangements for levying VAT on transportation.

• Enhance Clarity: Ensure procedural transparency and predictability for taxpayers.