Change in Tax Status for NCHL Services Following Government Transition

The Nepal Clearing House Limited (NCHL) has announced modifications to its tax status in light of the recent amendment to the Finance Ordinance (FY 2081/82), which is a significant upgrade impacting financial activities in Nepal. The Clearing House Services that were formerly exempt from VAT have been removed from the VAT Exemption List following the new legislation.

Starting today, Shrawan 1, 2081, all services rendered by NCHL will be subject to a 13% VAT levy. With this change, NCHL is required to bill customers for their services by applicable VAT legislation, and the money received from those invoices must be transferred into the Government of Nepal's Centralized Integrated Payment System.

NCHL has guaranteed that the required system modifications will be implemented to enable the smooth application of VAT on their services. Additionally, they have asked their respective members to notify their respective customers and users of the changes by updating their systems appropriately.