Kathmandu,  A one-day Value Added Tax (VAT) orientation program was successfully conducted.

The training was held on Wednesday through the collaboration of SOTTO Nepal, the Inland Revenue Department (IRD), and Sever Travel Network Nepal. Over 150 travel industry professionals participated in the program. During the event, commitments were made to continue organizing workshops to clarify VAT-related issues in the aviation sector and to ensure that the IRD remains accountable in addressing the industry’s concerns.

The training focused on the new challenges and practical difficulties of applying VAT on airline tickets. Travel professionals discussed these issues directly with the IRD. Organizations like SOTTO Nepal have been actively highlighting these concerns to the relevant authorities. While VAT is a common practice globally, its introduction in Nepal has posed significant challenges for the government in implementation.

With foreign airlines dominating over domestic ones and tickets being sold globally through various online platforms, there remains confusion over how and from where VAT should be collected in Nepal. According to the participating professionals, even though VAT applies to the final ticket price, different airlines are implementing it in varying ways, creating uncertainty for businesses. Participants also expressed concern that the government has not done sufficient groundwork to address these issues.