Application of VAT in Airlines Ticket

Sushil Parajuli

VAT Act 2052, Schedule I Group 9 had excluded the Air Travel from application of VAT under "Public Transportation and Carriage Service". With the enactment of Finance Act, 2080 Air Travel is no longer a VAT exempt service, starting from 2080.02.15 (29-May-2023). More details here.

Sushil Parajuli

Sushil Parajuli On 20-Jul-2023 (2080.04.04) IRD issued a notice in form of guideline to implement the Value Added Taxes in Airlines Ticket. Link here

Sushil Parajuli

On 27-Jul-2023 (2080.04.11) Nepal Association of Tour and Travel Agents (NATTA) filed a certiorari writ against the defendants Inland Revenue Department, Office of the Prime Minister and Council of Ministers, Ministry of Law, Justice and Parliamentary Affairs, Ministry of Culture, Tourism and Civil Aviation, Ministry of Physical Infrastructure & Transport, Civil Aviation Authority of Nepal and Nepal Airlines.
Case Number: 080-WO-0045

Sushil Parajuli

On 30-Jul-2023 (2080.04.14) the Supreme Court issued an interim order asking the government to not implement value-added tax (VAT) on air tickets for the time being.
Follow the case here. Case Number: 080-WO-0045

Sushil Parajuli

Sushil Parajuli Court issued an interim order asking the government to not implement value-added tax (VAT) on air tickets for the time being

On the 2080.05.15, Supreme Court rendered a final order, thereby discontinuing the interim order and determining that the Value Added Tax (VAT) shall be applicable to airline tickets, in accordance with the provisions of the Financial Act of 2080.