Feb 24, 2024

Explore Nepal and Enjoy Hassle-Free VAT Refunds in Nepal: A Guide for International Tourists

Explore Nepal and Enjoy Hassle-Free VAT Refunds in Nepal: A Guide for International Tourists

Planning a shopping spree in Nepal? 🛍️ Great news! International tourists can now get a VAT refund on their purchases. From majestic mountain gear to exquisite handicrafts, make the most of your Nepal visit without worrying about the extra costs. Not sure how to claim your refund? No worries! Our quick guide has all the details you need - from eligibility to the step-by-step process. Plus, we're just an email or WhatsApp message away if you need a helping hand. Ready to explore Nepal and shop smart? Let's dive in!


Nepal not only offers breathtaking landscapes and rich cultural experiences but also provides international tourists the opportunity to claim a Value Added Tax (VAT) refund on their purchases. If you’re planning to shop during your visit, here’s everything you need to know about securing your VAT refund, ensuring your trip is both memorable and cost-effective.

Photo by Rohan Reddy on Unsplash

Eligibility for VAT Refund

To be eligible for a VAT refund, ensure that you:

  • Are not a Nepalese or Indian citizen, nor have been a resident or employed in Nepal in the last six months.
  • Are not a cabin or flight crew member departing from Nepal.
  • Depart from Nepal by air from Tribhuvan International Airport, having stayed in Nepal for less than 183 days.

How to Shop and Claim Your VAT Refund

  1. Where to Shop: Look for stores displaying the “VAT Refund for Tourist” sign.
  2. Invoice Requirements: Each invoice should be at least Rs. 1,500 (excluding VAT), with total purchases amounting to a minimum of Rs. 15,000 (excluding VAT).
  3. Documentation: Present your passport at the store and fill out the “Tourist Application for VAT Refund” form on the day of your purchase.
  4. Customs Certification: Before check-in at Tribhuvan International Airport, show your purchases, completed VAT refund form, and tax invoices to the Customs Officer for inspection. For hand-carried items like watches or cameras, a re-inspection at the VAT Refund Office (after immigration) is necessary.
  5. Claiming Your Refund: Present your customs-certified “Tourist Application for VAT Refund” form at the VAT Refund Office. Refunds can be received in cash for amounts not exceeding Rs. 20,000, subject to a Rs. 500 fee. For amounts exceeding Rs. 20,000, a bank draft will be issued, with the fee and bank’s commission deductible from the refund.

Non-Qualifying Conditions

  • Goods or services consumed in Nepal, or goods not taken out of Nepal within 60 days from the purchase date, do not qualify.
  • Tourists departing via land routes are ineligible for VAT refunds.

How to avail the VAT refund service for international tourists?

  • The person is neither Nepalese nor Indian.
  • The person must surrender Foreign Exchange Encashment Receipt (FEER) before the exchange counter.
  • Nepalese Currency sought to be sold at the exchange counter should not exceed the amount purchased before. This has to be substantiated from the FEER together with the reduction(s) mentioned in the FEER.
  • The person must present valid passport for the verification at the exchange counter.
  • The person will be entitled for foreign exchange at prevailing bank's selling rate, subject to availability of the desired currency. In the case on non-availability of the desired currency the person may be requested to accept alternative foreign currency.

Additional Services: Foreign Currency Exchange

Before leaving, you can also exchange any surplus Nepalese currency at the Rastriya Banijya Bank's Foreign Exchange Counter, located in the Departure Lounge (after immigration). Remember to present your Foreign Exchange Encashment Receipt (FEER) and a valid passport for verification. This service ensures you’re not leaving with unusable currency, making your departure as smooth as your arrival.

By following these straightforward steps, international tourists can enjoy the diverse offerings of Nepal while benefiting from the VAT refund system. Whether it’s the serene landscapes, the warmth of the Nepali people, or the allure of the Himalayas, Nepal promises an enriching experience, now made even more rewarding.

By following these straightforward steps, international tourists can enjoy the diverse offerings of Nepal while benefiting from the VAT refund system. Whether it’s the serene landscapes, the warmth of the Nepali people, or the allure of the Himalayas, Nepal promises an enriching experience, now made even more rewarding.

Need Assistance? We're Here to Help!

If you have any questions or need further guidance on your VAT refund process, or if you're seeking tips to make your visit to Nepal unforgettable, don't hesitate to reach out. Contact us via email at admin@suyatra.com or send us a message on WhatsApp at +977-9818008585. Our team is dedicated to ensuring your trip to Nepal is as smooth and enjoyable as possible.

Happy travels, and we look forward to welcoming you to Nepal!

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