Digital Service Tax (DST) & VAT in Nepal
Under Nepal Inland Revenue Department (IRD) regulations, foreign digital service providers including Meta Platforms Ireland Ltd are subject to Digital Service Tax (DST) and reverse-charge VAT.
If you run ad campaigns as an unregistered individual, you cannot claim your ad spend as a legitimate business expense during annual income tax filing. Every rupee spent without a valid tax bill gets added back to your taxable net profit.
The Hidden 25% Corporate Tax Penalty
If you spend Rs. 500,000 on ads from personal cards without recognized invoices, tax auditors will disqualify that expense. You will pay up to 25% income tax on that half a million as phantom profit.
Core Takeaway: Register your Business Manager under your company PAN/VAT number to establish a clean financial paper trail.