Nepal's 13% VAT on Trekking and Tour Packages
Information for Travelers Planning a Trekking or Tour in Nepal
When planning a trekking, climbing, or tour package in Nepal, travelers may see Value Added Tax (VAT) included in the package price or reflected separately in the pricing provided by a trekking or tour company.
This page provides general information to help travelers understand VAT in relation to trekking and tour packages in Nepal.
Tax laws, government policies, and applicable requirements may change from time to time. Travelers should therefore consider the information on this page together with the latest official information issued by the Government of Nepal.
VAT stands for Value Added Tax.
It is a tax administered by the Government of Nepal on taxable goods and services in accordance with Nepalese tax legislation.
Where applicable, VAT collected by a VAT-registered business is a government tax and is not additional profit for the trekking or tour company.
Nepal's standard VAT rate is 13%, subject to the applicable provisions, classifications, exemptions, and other requirements under Nepalese tax law.
The principal legislation governing VAT is the Value Added Tax Act, 2052 (1996), together with subsequent amendments and applicable government provisions.
In June 2023, the Government of Nepal introduced a 13% VAT on trekking and tour packages as part of changes to the country's tax regime.
On 9 June 2023, The Kathmandu Post (see details at : www.kathmandupost.com/money/2023/06/09/travel-industry-criticises-vat-luxury-taxes) reported on the introduction of 13% VAT on trekking and tour packages and also reported concerns expressed by tourism-sector organizations regarding the potential effect of the tax changes on tourism costs.
This provides independent news coverage and historical context regarding the introduction of VAT on trekking and tour packages in 2023.
The current tax treatment of any particular trekking or tour service should be determined according to the applicable Nepalese laws, regulations, and official government requirements in force at the time the service is provided.
A trekking package can include a number of services and arrangements, depending on the itinerary and the package selected.
These may include:
Professional trekking guide services
Porter services
Accommodation
Meals
Ground transportation
Trekking permits
Conservation-area or national-park fees
Restricted-area permits, where applicable
Trekking logistics and arrangements
Other services specifically included in the trekking itinerary
The tax treatment of individual services or components may depend on the applicable provisions of Nepalese tax law.
For this reason, travelers should review the inclusions and pricing information provided by their trekking or tour company.
Where VAT is applicable to a taxable service provided by a VAT-registered trekking or tour company, the applicable VAT may form part of the amount payable for the service.
For illustration only:
Taxable service price: USD 2,000
13% VAT: USD 260
Total including VAT: USD 2,260
This example is provided only to explain how a 13% calculation works. It is not a government-set trekking price, permit fee, or official trekking tariff.
The actual amount payable will depend on the services included in the package and the applicable tax provisions at the time of the transaction.
Trekking and tour companies may present their prices in different ways.
For example, a company may show the applicable VAT separately, or it may provide a package price that already includes applicable VAT.
Travelers are encouraged to check the quotation or package information provided by their trekking company and confirm whether the stated price includes applicable VAT.
This can help travelers understand the total cost of their trek before making a booking.
Being an international traveler does not, by itself, determine whether VAT applies to a trekking or tour service in Nepal.
Where VAT is applicable, the treatment is determined by the relevant provisions of Nepalese tax law and the nature of the service provided.
International trekkers are welcome to ask their trekking company whether the quoted package price includes any applicable VAT and to clarify the total cost before confirming their trek.
Trekking packages offered by different companies may have different prices even when the general trekking route is similar.
Prices can vary depending on factors such as:
Applicable taxes
Trekking and climbing permits
Conservation-area and national-park fees
Transportation
Accommodation
Meals
Guide and porter services
Group size
Private or group arrangements
Number of trekking days
Safety and logistical arrangements
Services included in the package
Travelers may therefore wish to compare the complete package, inclusions, exclusions, and total price rather than comparing only the advertised package price.
Before confirming a trekking or tour package in Nepal, travelers may wish to ask the trekking company:
Whether applicable VAT is included in the quoted package price
Which permits are included
Which government fees are included
Whether accommodation and meals are included
Whether guide and porter services are included
Whether transportation is included
Which services are excluded from the package
The total amount payable for the selected package
A clear discussion of these details before booking can help travelers understand the services included and the overall cost of their trek.
The Inland Revenue Department (IRD), Government of Nepal, is the primary government authority responsible for the administration of VAT in Nepal.
The IRD publishes the applicable VAT legislation and related official information.
The official IRD website currently provides the Value Added Tax Act, 2052, including the version listed with amendments made by the Financial Act 2082.
The IRD website should be consulted for the latest applicable legislation, amendments, official notices, and other tax-related information.
Official source:
www.ird.gov.np/category/valueaddedtaxact/
The Kathmandu Post reported on 9 June 2023 that the Government of Nepal had imposed 13% VAT on trekking and tour packages.
The article also reported concerns expressed by tourism-sector organizations regarding the potential effect of the tax changes on tourism costs.
The article provides independent news coverage and historical context concerning the introduction of VAT on trekking and tour packages in 2023.
The Kathmandu Post — Travel industry criticises VAT, luxury taxes
www.kathmandupost.com/money/2023/06/09/travel-industry-criticises-vat-luxury-taxes
The Kathmandu Post is an independent news source. Its report should be considered together with the current Nepalese tax legislation and official information issued by the Government of Nepal.
For general background information about VAT in Nepal, travelers may also consult the following independent informational resources:
Company Khata
www.companykhata.com/library/blogs/vat-blogs/value-added-tax-vat-in-nepal/
Law Alpine
www.lawalpine.com/blog/vat-in-nepal-rates-and-thresholds-2082-83
These are independent informational resources provided for general background purposes. They are not official government sources.
For official VAT requirements, the Inland Revenue Department and applicable Nepalese tax legislation remain the primary sources.
This page is provided for general informational and travel-planning purposes and is intended to help travelers better understand VAT in relation to trekking and tour packages in Nepal.
Nepal's tax laws, VAT provisions, government policies, procedures, and tourism-related requirements may be amended or updated from time to time. We make reasonable efforts to keep the information on this page current based on publicly available official and reliable sources.
The applicable laws, regulations, official notices, rates, and government requirements in effect at the time of the transaction shall prevail.
The independent news and informational sources referenced on this page are provided for additional background and context. For the most current and authoritative information, travelers are encouraged to refer to the Inland Revenue Department, Government of Nepal, and to discuss the applicable VAT treatment with their trekking or tour company.
We respectfully encourage travelers to confirm the latest applicable requirements before making their travel arrangements, particularly where tax provisions or government requirements may have been updated.
Last reviewed: August 2026
