Inland revenue department has issued a notice which serves as guiding document for Vat applicability on Air Transportation services as attracted by Finance Act 2080.In the context of international service providers, it is important to note that VAT shall be collected from passengers departing from Nepal and extending up to the destination specified in the ticket. This collection of VAT is applicable regardless of the place or mode of issue of the ticket. In the case of tickets that include both-way fares, it is not necessary to collect VAT on the fare from abroad to Nepal. This means that VAT is not applicable to the portion of the fare for the inbound journey. Furthermore, entities that are registered in Nepal but do not have any services departing from Nepal are not required to collect tax. In such cases, if the entity does not operate any outbound services from Nepal, they are not obligated to charge VAT on their services. Unlike other entities, international air transportation service providers are not required to obtain specific approval for computer billing. However, it is mandatory for them to inform the department about the software they are utilizing for billing purposes.
Link for full notice from department
https://ird.gov.np/public/pdf/841319746.pdf