Kathmandu. Consumers will get 10 percent of the tax paid on the price if they pay online at hotels, restaurants and bars.

The Internal Revenue Department has decided on August 21 to refund 10 percent of the tax paid on three types of services to consumers as cash incentives.

According to the department, this is provided for in sub-section 1 of section 25 of the Value Added Tax Act 2052.

“If a consumer purchases goods and services determined by the department by publishing a notification and pays the price of such purchase electronically in accordance with the prevailing law, 10 percent of the tax paid as a cash incentive will be returned to his bank account after completing the process prescribed by the department,” the act states. .

Which services will be tax refund?
According to the department, this condition is going to be applied to the service provided by the alcohol drinking center (bar). Such tax refund provision will also be applicable to chamenagriha (restaurant) services.

In addition, 10 percent tax will be refunded if online payment is made even for services provided by all types of hotels, motels, lodges, guesthouses.

Under what conditions will the tax be refunded?
According to the department, taxpayers who are registered in Value Added Tax (VAT) and issue electronic invoices approved by the department can join this system.

Sellers who receive payments through electronic payment devices such as debit/credit cards, QR codes, mobiles, etc. have to arrange automatic refund of 10 percent of VAT to the consumer’s account.

According to the procedures related to electronic invoices, electronic equipment and software suppliers listed in the department have to modify their software accordingly.

It has also been stipulated that the seller who is affiliated to the system should publish information about the facility of VAT refund to consumers who make electronic payments at their place of business.