.png?fit=max&auto=format&n=nLGu_cb4I8615Ivv&q=85&s=f254c462678372ef8cfbab4f3e8f0081)
- Allocation of Tax Responsibility in Offshore Transactions
Tax Policy
Last Updated: 02 July 2026
1. Purpose and Scope
1.1 This Tax Policy sets out general principles relating to taxation in connection with the use of the Annapurna Art platform.
1.2 Annapurna Art operates as a digital marketplace and intermediary facilitating transactions between artists or sellers and buyers. Annapurna Art does not act as a tax advisor, tax agent, tax representative, or tax handler for any user, artist, or third party.
1.3 This policy is provided for general informational purposes only and does not constitute legal, tax, accounting, or financial advice.
1.4 This Tax Policy forms part of and should be read together with the Platform’s Terms and Conditions.
2. Independent Tax Responsibility of Users and Artists
2.1 Each artist, seller, buyer, and user of the platform is solely and independently responsible for determining, declaring, reporting, and paying all taxes applicable to them under Nepalese law or any other applicable jurisdiction.
2.2 Such taxes may include income tax, value added tax, withholding tax, customs duties, sales tax, goods and services tax, or any other direct or indirect taxes.
2.3 Annapurna Art does not assume, collect, remit, or guarantee tax compliance on behalf of artists, sellers, or users except where expressly required by applicable law.
3. No Tax Liability of Platform
3.1 Annapurna Art shall not be liable for any tax obligation, assessment, reassessment, demand, penalty, interest, or enforcement action arising in relation to the income, transactions, or activities of any artist, seller, buyer, or user.
3.2 Any classification, characterization, or recharacterization of a transaction by tax authorities shall be the sole responsibility of the relevant user or artist.
3.3 The facilitation of listings, payments, invoicing, or settlements by Annapurna Art shall not be construed as acceptance of tax liability or tax compliance responsibility.
4. Value Added Tax and Indirect Taxes
4.1 VAT on Goods and Platform Services
4.1.1 Where applicable under Nepalese law, value added tax at the prevailing rate may apply to the sale of artwork or to platform commissions, service fees, or other charges.
4.1.2 VAT, if applicable, may be displayed separately at the time of checkout or invoicing.
4.1.3 VAT applicability depends on factors including registration status, nature of supply, and place of supply, which must be assessed independently by the relevant party.
4.2 Export of Services and Zero Rating
4.2.1 Where platform services qualify as export of services under Nepalese VAT laws, such services may be subject to zero rated VAT, provided statutory conditions are satisfied.
4.2.2 Zero rated supplies are taxable supplies subject to a zero percent rate and are distinct from exempt supplies.
4.3 Reverse VAT Mechanism
4.3.1 In certain circumstances, VAT liability may arise under a reverse charge or reverse VAT mechanism, including where services are received from non-resident service providers or where otherwise required under Nepalese VAT law.
4.3.2 Under such mechanisms, the recipient of the service may be required to self-assess, declare, and pay VAT directly to the tax authorities.
4.3.3 Annapurna Art does not verify, administer, or ensure compliance with reverse VAT obligations for any user or artist. Responsibility for compliance remains solely with the relevant party.
5. Income Tax
5.1 Income earned by Annapurna Art from platform commissions, service fees, or related charges constitutes business income taxable in Nepal in accordance with the Income Tax Act, 2058 (2002).
5.2 Income earned by artists or sellers through the platform constitutes their own income and is taxable in accordance with applicable income tax laws.
5.3 Annapurna Art does not provide any assurance regarding income tax treatment, deductibility, exemptions, withholding obligations, or foreign tax credit availability.
6. Cross Border Sales and Foreign Indirect Taxes
6.1 Annapurna Art may facilitate sales of artwork or collect payments in connection with exhibitions, galleries, or transactions occurring outside Nepal or involving non-resident buyers or sellers.
6.2 Depending on the jurisdiction, place of supply rules, marketplace facilitator regulations, or applicable digital platform laws, Annapurna Art may be legally required to register for, collect, report, and remit value added tax, goods and services tax, sales tax, or similar indirect taxes in a foreign jurisdiction, even where it acts as an intermediary.
6.3 Where such legal obligation arises, Annapurna Art may collect and remit such foreign indirect taxes to the extent required by law, without assuming responsibility for the underlying tax characterization of the transaction.