Graduate School of International Studies Ajou University
VAT is growing rapidly around the world as most efficient tax structure but in Nepal, it hasn？t proven to be working well. So, this study was done to know in depth what were the problems and remedies for smooth operation of VAT. The results were drawn using both statistical methods and survey method to get a crystal view on the matter. This study was done by studying and analysing the primary data and also secondary data to see its impact on the present scenario. The findings were surprising but rather close to the perception with which, I initiated the thesis. The main problems were consumers themselves and inefficient administration in whole. The significance of the study is that these findings might be used as primary data for further studies and also to various organizations to get a general view of the situation as well as to meliorate it.