Nepal

AWS, Inc is required to charge Value Added Tax (“VAT”) on sales of electronic services to non-business customers (B2C) in Nepal.

The Nepal tax authorities have mandated non-resident suppliers to register for Value Added Tax (“VAT”) and charge 13% VAT on all electronically-supplied services made to B2C customers in Nepal (i.e. customers that are not using AWS services for business/ professional purposes in Nepal). Although Amazon Web Services, Inc. is established in the United States, it is registered for Nepal VAT.

As such, if you are using Amazon Web Services, Inc.’ s services for business / professional purposes, you must update your payer and each linked account with the correct billing address in Nepal and a confirmation that ‘AWS services procured by you will be used for business/ professional purposes’ in the Tax Settings page.  

This will ensure that you are not charged VAT on your purchases from Amazon Web Services, Inc., however, you may be required to reverse charge / self-assess VAT. Please consult with your tax advisor.

Similarly, if you make purchases on the AWS Marketplace, although Amazon Web Services, Inc. is billing you on behalf of the Independent Software Vendor or Partner seller, 13% VAT will be collected unless you update your Tax Settings page as per the above instructions.

All VAT collected will be remitted by Amazon Web Services, Inc. to the Nepal Tax Authority.

At the moment of invoicing, AWS determines the location of each individual account, based on certain information, including your TRN, your Billing address and your Contact address. The result of AWS’ determination is shown as the “Tax Address” on the Tax Settings page of each account.

If you have a consolidated billing family, please note that each account is assessed individually: linked accounts do not inherit the Tax Address or the TRN of the payer account.

The payer account can view the Tax Address of all their linked accounts on their own Tax Settings page of each account.

For more information please see Tax Help- Location.