Running a travel agency in Nepal involves more than maintaining a company registration, PAN/VAT and annual tax filing. Travel and trekking agencies also have periodic reporting obligations under Nepal’s tourism regulatory framework.
One of the commonly overlooked requirements is the half-yearly report of travel and trekking agencies.
Many small travel companies focus on VAT, TDS and annual tax filing but may overlook this tourism-sector compliance. This can become a problem when the company later needs to update its records, renew licences, obtain documents or demonstrate that its regulatory requirements are up to date.
What Is the Half-Yearly Compliance for Travel Agencies?
Travel and trekking agencies operating under the applicable tourism regulatory framework are required to submit periodic information regarding their business activities.
The Travel and Trekking Agency Rules, 2062 contain a prescribed reporting format under Rule 16. The format asks agencies to provide information about their activities, including tourist numbers and services provided during the relevant period.
The Tourism Act also provides for periodic reports from licensed travel and trekking agencies. The current legal provision refers to periodic reports being submitted to the appropriate government authority, with the competent authority depending on whether the agency is licensed by the federal or provincial government.
For this reason, businesses sometimes refer to this requirement as NTB half-yearly compliance, although the exact authority and procedure should be checked according to the agency’s licence and current regulatory arrangement.
When Is the Half-Yearly Report Due?
The compliance calendar currently used in Nepal identifies two half-yearly reporting deadlines for travel and trekking agencies.
For FY 2082/83, the deadlines were:
- Bhadra 4, 2082 — August 20, 2025
- Falgun 5, 2082 — February 17, 2026
These dates are listed specifically as the deadlines for travel and trekking agencies to submit their half-yearly details.
The exact deadline and applicable authority should always be confirmed for the relevant financial year because government procedures and jurisdiction can change.
What Information Does a Travel Agency Need to Report?
The prescribed reporting format provides for information relating to the agency’s tourism activities during the reporting period.
Depending on the type of agency, information can include:
- Tourism services provided within Nepal
- Tourism services provided outside Nepal
- Number of tourists
- Tourist nationality
- Ticketing activities
- Tour activities
- Trekking services
- Other relevant tourism-related information
The prescribed form specifically includes fields for the number of tourists by nationality and ticketing/tour activity for travel agencies. For trekking agencies, it includes information relating to trekking and mountaineering services.
Therefore, a company should maintain proper records throughout the year instead of trying to reconstruct six months of activity immediately before the deadline.
Why Do Travel Companies Miss This Compliance?
There are several reasons this requirement can be overlooked.
1. It Is Not the Same as VAT Filing
Travel companies are already dealing with monthly VAT, TDS and other tax compliance. The half-yearly tourism report is a separate regulatory requirement.
2. It Does Not Always Involve a Large Payment
Because the filing may simply involve reporting business information rather than paying a significant tax amount, some business owners may not give it the same attention as VAT or income tax.
3. Small Agencies May Have Limited Transactions
An agency that has only issued a few tickets or arranged a small number of tours may assume that the report is unnecessary.
However, the obligation should not simply be ignored because the business has low turnover.
4. The Accountant May Not Handle Tourism-Sector Compliance
An accountant who handles VAT, TDS and income tax may not automatically be responsible for every tourism licence or sector-specific filing.
This is why travel companies should specifically ask whether their accountant is handling tourism regulatory compliance in addition to tax compliance.
What Should a Travel Agency Prepare Before Filing?
A simple internal record can make the half-yearly filing much easier.
Keep:
- Number of tourists handled
- Nationality of tourists
- Ticketing transactions
- Tour bookings
- Domestic tourism activities
- Outbound tourism activities
- Trekking bookings, where applicable
- Mountaineering-related services, where applicable
- Relevant invoices and supporting records
- Agency licence details
- Previous half-yearly filing records
The exact information required depends on the agency’s category and the applicable reporting form.
Does a Travel Agency Need to File Even If There Was No Business?
This is an important question for small and inactive travel companies.
A company should not assume that no business means no compliance.
If the travel agency remains licensed or registered and is subject to periodic reporting, the business should check whether a nil or applicable report is required rather than simply skipping the filing.
This is particularly relevant for agencies that have been inactive for several months but have not formally closed or surrendered their licence.
What Happens If the Half-Yearly Report Is Not Filed?
Failure to comply with a regulatory reporting requirement can create problems even when the company has otherwise paid its taxes.
The Tourism Act provides for periodic reporting by licensed travel and trekking agencies, and the tourism regulatory framework also provides enforcement mechanisms for violations of applicable requirements.
The practical consequences can depend on the nature of the non-compliance and the authority involved.
A company may subsequently face difficulty when dealing with matters such as:
- Licence-related processes
- Renewal or regulatory updates
- Government documentation
- Compliance verification
- Requests for historical business information
Therefore, it is better to maintain the filing regularly rather than wait until a renewal or other government process requires the missing records.
Can Previous Half-Yearly Reports Be Filed Later?
If your travel company has missed one or more reporting periods, do not simply ignore the outstanding compliance.
First determine:
- Which reporting periods are outstanding
- Which authority currently handles the filing
- Whether the company has changed its licensing authority
- Whether any late fee or other consequence applies
- What supporting information is required
- Whether previous reports need to be submitted separately
For older outstanding periods, the procedure may differ from the current filing process. A professional should verify the current requirement before submitting backdated reports.
How Much Does Travel Agency Half-Yearly Compliance Cost in Nepal?
The government filing requirement and the professional service fee are two different things.
There is no universal market price for an accountant or consultant to prepare and submit this compliance. The fee normally depends on the amount of information that needs to be collected and prepared.
For a straightforward travel agency with properly maintained records, a reasonable professional-market pricing structure could be:
| Service | Indicative Professional Fee |
|---|---|
| Basic half-yearly report filing | Rs. 1,500–2,500 |
| Report preparation + record checking | Rs. 2,500–4,000 |
| Half-yearly compliance + tourism licence/document review | Rs. 4,000–6,000 |
| Complete tourism + tax compliance package | Rs. 5,000+/month, depending on scope |
These are professional service fees, not government fees, and the actual amount may vary.
A company with only a few transactions should not necessarily pay the same fee as an agency handling hundreds of tourists, ticketing transactions and multiple tour operations.
What Should an Accountant Charge?
For a small travel company, I would position the service around Rs. 2,000–3,000 per half-yearly filing if the client provides reasonably organized records.
A higher fee is justified when you have to:
- Collect six months of information
- Reconstruct tourist records
- Reconcile ticketing information
- Prepare missing records
- Check previous filings
- Handle overdue reports
- Coordinate with the relevant tourism authority
- Review licence and regulatory status
This makes the service more valuable than simply “filling a form.”
Half-Yearly Travel Agency Compliance Checklist
Before submitting the report, check:
- Travel/trekking agency licence is available
- Reporting period has been identified
- Previous compliance records have been checked
- Tourist numbers have been compiled
- Tourist nationality information is available
- Ticketing transactions have been reviewed
- Tour transactions have been reviewed
- Trekking/mountaineering transactions have been reviewed, if applicable
- Relevant supporting documents are available
- Correct reporting authority has been identified
- Half-yearly report has been prepared
- Filing has been completed within the applicable deadline
- Submission evidence has been retained
Half-Yearly Compliance Is a Small Task That Can Prevent a Bigger Problem
For a travel agency, tourism-sector compliance should be treated as part of regular business administration—not something to remember only when the government asks for documents.
A travel company may have its company registration, PAN, VAT and tax filings in order while still having a gap in its tourism-sector reporting.
The Nepal Tourism Board itself operates an official trade platform for tourism businesses, while the broader regulatory framework for travel and trekking agencies is governed through tourism legislation and applicable government authorities.
For travel and trekking companies, maintaining a simple compliance calendar covering VAT + TDS + OCR + income tax + tourism half-yearly reporting + licence/renewal requirements can significantly reduce the chance of missing an obligation.
Need Help With Travel Agency Compliance in Nepal?
If your travel or trekking company has not been submitting its half-yearly tourism reports, the first step is to check your previous filings and determine whether any periods are outstanding.
A professional accounting/compliance service can assist with:
Record collection → Half-yearly report preparation → Filing → Submission record maintenance
For a straightforward agency, professional filing may typically cost around Rs. 2,000–3,000 per half-yearly report, while overdue or record-intensive cases may cost more.
If your company has missed previous reporting periods, it is better to review the situation now rather than wait until the next licence, renewal or government-document requirement.
Disclaimer: Tourism-sector regulatory responsibilities and filing procedures can change, particularly following changes in federal/provincial jurisdiction. The applicable authority, deadline, late consequences and required documents should be confirmed for the agency’s current licence and financial year before filing.
