TheValue Added Tax (VAT) is a tax that is added to the price of goods and services in many countries around the world. This tax is typically included in the price of goods and services and is paid by the consumer at the time of purchase.
However, in some countries, tourists who are not residents of that country are eligible for a refund of the VAT on goods they have purchased during their visit. This is known as a VAT refund or a tax-free shopping scheme.
How to claim VAT refund?
To claim a VAT refund, tourists must usually meet certain requirements, such as spending a minimum amount on eligible goods during their trip. They must also present the relevant receipts and documents to prove their eligibility for the refund.
When departing the country, tourists can typically obtain a VAT refund at the airport or other designated locations by presenting their receipts and documents to a customs or tax agent. The agent will then process the refund and return the VAT amount to the tourist, usually in the form of cash or credit to a credit card.
Why VAT refund
Thepurpose of the VAT refund scheme is to encourage tourism and shopping by making it easier and more affordable for tourists to purchase goods in a foreign country. By returning the VAT amount to tourists, the country can attract more visitors and generate more revenue from tourism.
Nepal and VAT refund scheme
You can visit the website https://www.pigeontravels.com/vat-refund/ if you are interested to know the criteria to get VAT refund at Tribhuwan International airport. The person departing from Nepal by air carrier from TIA can get the VAT refund if the person is neither citizen of Nepal nor resident of Nepal.
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