BUY 1 GET 1 FREE — ACCOUNTING & TAX TREATMENT IN NEPAL | Explained in Nepali | Nepal Tax Explained

Welcome to Nepal Tax Explained. In this video, we discuss technical guide for businesses in Nepal on the *accounting and tax treatment* of "Buy 1 Get 1 Free" promotions, emphasizing that the marketing term "free" does not reflect the *economic substance* of the transaction. The text argues that companies must record the *cost of all units supplied* to avoid inventory reconciliation errors and to accurately report gross profit or loss. From a regulatory perspective, it highlights the necessity of documenting these deals as *promotional discounts* on VAT invoices to ensure compliance with Nepal’s tax laws. Ultimately, the guide’s central thesis is that **free for the customer does not mean free for the books**, requiring a disciplined approach to tracking inventory movement and tax obligations. Topics Covered: • Key provisions • Practical examples • Tax implications • Compliance requirements Subscribe for regular updates on: ✓ Income Tax ✓ VAT ✓ TDS ✓ Company Law ✓ Audit ✓ Accounting ✓ Finance #NepalTaxExplained #NepalTax #IncomeTaxNepal