In Nepal, households using more than 50 units of electricity per month are now subject to a 5% VAT on the excess consumption. The new rule applies from 17 July 2026, exempting the first 50 units while charging 5% VAT on any usage above that threshold.
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Key Takeaways
The 5% VAT on electricity consumption above 50 units takes effect from 17 July 2026 in Nepal, as announced by the Nepal Electricity Authority.
Households consuming up to 50 units of electricity per month are exempt from the new VAT in Nepal, effective from 17 July 2026, according to the Nepal Electricity Authority.
Around 1.2 million households consuming between 51 and 150 units, and 250,000 households consuming between 151 and 250 units, will be affected by the new VAT in Nepal from 17 July 2026, as stated by the Nepal Electricity Authority.
Primary source
Read the full article at myRepublicaThis summary was published on VATfaqs.com on 17 July 2026. It relates to VAT developments in Nepal. The original source is myRepublica.
