Nepal VAT Compliance and IRD Filing

Apply Nepal VAT, maintain VAT registers, validate PAN numbers, and export IRD-ready reports from Kuvera.

Kuvera helps businesses manage Nepal VAT compliance by applying VAT on invoices, maintaining VAT registers, validating PAN numbers, and preparing reports for filing.

Kuvera is designed to support Nepal IRD compliance workflows, but filing obligations can vary by business type. Confirm your exact requirements with a qualified accountant.

VAT on invoices

Nepal VAT is generally applied at 13% on taxable goods and services. Kuvera calculates VAT automatically when you create a taxable invoice.

VAT calculation on an invoice

PAN / VAT records

Store PAN or VAT numbers for customers and suppliers before issuing compliant documents.

13% VAT calculation

Calculate VAT on the taxable subtotal and show it as a separate line item.

Invoice-ready fields

Include required tax and invoice details on printed and PDF documents.

Required invoice fields

Kuvera helps capture the key details needed on Nepal VAT invoices.

Seller details

Registered business name, address, and seller PAN or VAT number.

Invoice details

Unique invoice number and invoice date in the selected calendar format.

Buyer details

Customer name, address, and PAN or VAT number where required.

Line items

Item description, unit, quantity, rate, taxable amount, and VAT amount.

Tax summary

Taxable subtotal, VAT amount, and total payable amount.

Document output

Printed or PDF invoice with required tax information clearly displayed.

Review seller, buyer, PAN, taxable amount, VAT amount, and total values before finalizing tax documents.

VAT registers

Kuvera organizes VAT reports by transaction type so sales and purchase records can be reviewed before filing.

VAT reports

VAT 1 sales register

VAT 1 records sales invoices and output VAT collected from customers.

VAT 1 is populated from sales invoices and can be used to review taxable sales for a selected period.

It typically includes:

• Invoice number
• Buyer PAN
• Taxable amount
• VAT amount
• Sales period
• Export options for review and filing preparation

VAT 2 purchase register

VAT 2 records purchase bills and input VAT paid to suppliers.

VAT 2 is populated from purchase bills and can be used to review input VAT for set-off and filing preparation.

It typically includes:

• Bill number
• Supplier PAN
• Taxable amount
• VAT amount
• Purchase period
• Export options for accountant review

Filter VAT reports

Use VAT report filters to review transactions for the correct filing period.

VAT report filters

BS period

Filter VAT records by Bikram Sambat reporting period where supported.

AD period

Filter VAT records by Gregorian calendar period where supported.

Sales records

Review output VAT from customer invoices.

Purchase records

Review input VAT from supplier bills.

Review VAT 1 and VAT 2 for the same reporting period before sharing exports with your accountant.

TDS tracking

Use TDS tracking when supplier payments are subject to Tax Deducted at Source.

TDS tracking

Apply TDS rate

Apply the applicable TDS rate while recording a supplier payment.

Track deductions

Maintain a TDS register for deductions made during the selected period.

Update ledgers

Show supplier payments after TDS deduction in supplier ledgers.

TDS requirements vary by payment type and supplier relationship. Confirm applicable rates and filing obligations with your accountant.

PAN validation

Kuvera helps validate customer and supplier PAN numbers against Nepal’s 9-digit PAN format before compliant documents are finalized.

Customer PAN

Store and review customer PAN or VAT details before issuing sales invoices.

Supplier PAN

Store and review supplier PAN or VAT details before recording purchase bills.

9-digit format

Check that PAN values follow Nepal’s 9-digit format.

Document validation

Review tax identifiers before posting invoices, bills, credit notes, or debit notes.

Missing or invalid PAN details can create filing errors. Review customer and supplier tax details before posting tax documents.

Audit trail

Every posted tax document should remain traceable for review and audit.

Timestamped records

Invoices, credit notes, debit notes, and other tax documents are timestamped when created or updated.

User attribution

Actions are linked to the staff member who created, updated, approved, voided, or adjusted the record.

Posted document history

Posted records should be adjusted through credit notes or debit notes instead of being quietly deleted or overwritten.

Open Settings > Audit log to review account activity and document history where available.

Credit and debit notes

Use credit notes and debit notes to adjust posted invoices or bills while keeping the original transaction traceable.

Credit and debit note adjustment workflow

1. Open the original document

   Find the document under Sales > Invoices or Purchase > Bills.

2. Create an adjustment note

   Create a credit note to reduce a customer balance, or a debit note to adjust a supplier bill.

3. Review tax amounts

   Confirm taxable amount, VAT amount, PAN details, and linked document reference.

4. Post the note

   Post or approve the note so the ledger and VAT register are updated for the selected period.

Credit Note

Use a Credit Note to reduce the value of a posted Sales Invoice after a customer return, billing correction, or post-invoice discount.

Debit Note

Use a Debit Note to adjust a supplier Purchase Bill for returns, damaged goods, quantity mismatches, or pricing corrections.

Do not delete or overwrite posted tax documents to make corrections. Use the proper credit note or debit note workflow so records remain audit-ready.

Filing exports

Export VAT and TDS reports from the reporting area for accountant review and filing preparation.

VAT and TDS export options

VAT 1 export

Export the sales VAT register in Excel or PDF format.

VAT 2 export

Export the purchase VAT register in Excel or PDF format.

TDS export

Export the TDS register in Excel or PDF format.

Filing preparation checklist

Before sharing VAT or TDS reports for filing, review the source records.

Check invoice dates

Confirm sales invoices and purchase bills are recorded in the correct filing period.

Verify PAN details

Review buyer and supplier PAN or VAT numbers for missing or invalid values.

Confirm taxable amounts

Check taxable and non-taxable totals before exporting VAT reports.

Review VAT totals

Compare output VAT and input VAT totals for the reporting period.

Review adjustments

Confirm credit notes and debit notes are linked to the correct original documents.

Export reports

Export VAT 1, VAT 2, and TDS reports for accountant review and filing preparation.

Export VAT 1 and VAT 2 at the end of each month and share them with your accountant before filing deadlines.