Taxing the Digital Economy: Challenges in Cross-Border E-Commerce & Digital Service Tax in Nepal

The rapid growth of digital services and cross-border e-commerce has created new challenges for tax authorities in Nepal. Foreign digital platforms can provide services to Nepali consumers without maintaining a physical presence in the country. Nepal has introduced a framework involving Digital Service Tax (DST) and Value Added Tax (VAT) for non-resident digital service providers. This article explores the key tax provisions, operational challenges, B2B and B2C treatment, and the evolving role of Chartered Accountants in the digital economy.