YouTube, Facebook, Netflix will have to Pay Service Tax in Nepal

service tax

From now YouTube, Facebook, Netflix and other platforms will have to pay service tax in Nepal. According to the policy announced by the Government of Nepal earlier, with the beginning of the financial year 2079/80, such platforms have to pay service tax to the Government of Nepal.

The digital service tax (Digital Service Tax) procedure brought by the government to regulate electronic services, 2079 has been implemented from today, and these platforms have to pay service tax.

Along with this, service providers like YouTube, Facebook, Netflix, Tiktok, Google have to pay two percent tax as service tax. This means that two percent of the income earned by such service providers from Nepal through advertisement or any other means will now have to be paid to the government.

Advertising, Movies, Television, Music, Over the Top (OTT), Data Collection, Cloud Services, Gaming, Mobile Apps, Online Market, Supply and Update of Software, Data, Image Download Services, Education, Consultancy, Skill Development and Training as per Policy Services include e-books, e-libraries, e-magazines and other electronic services.

Through these means, the service provider has to pay two percent of the income from Nepal to the government.

It is said that this tax will be levied only on transactions above 20 lakh rupees per annum. This means that if any of these companies earns less than 20 lakhs by providing services in Nepal, they will not have to pay service tax.

It is said that such tax should be done within three months from the end of the financial year. If the amount is not deposited within the specified time, interest will be charged at the rate of 15 percent per annum. For this, the service provider has to be registered in Nepal. Whether the company is registered in Nepal or not, this tax has to be paid.

Companies that are registered in Nepal must also be registered for value added tax in Nepal according to the Economic Act. Also service tax has to be paid. In the case of unregistered companies, only service tax is charged.

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