In Nepal, businesses must navigate two primary tax registrations: the Permanent Account Number (PAN) and Value Added Tax (VAT). Understanding the differences and requirements for each is crucial for compliance and effective business operations.
Both PAN and VAT registrations are essential components of operating a business in Nepal. While PAN registration is compulsory for all entities, VAT registration becomes necessary only when specific turnover thresholds are met. Understanding these distinctions helps businesses comply with Nepal's tax regulations effectively while optimizing their financial operations.