> ## Documentation Index
> Fetch the complete documentation index at: https://help.kuverbooks.com/llms.txt
> Use this file to discover all available pages before exploring further.

# 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.

<Note>
  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.
</Note>

## 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.

<Frame caption="VAT calculation on an invoice" />

<CardGroup cols={3}>
  <Card title="PAN / VAT records" icon="id-card">
    Store PAN or VAT numbers for customers and suppliers before issuing compliant documents.
  </Card>

  <Card title="13% VAT calculation" icon="percent">
    Calculate VAT on the taxable subtotal and show it as a separate line item.
  </Card>

  <Card title="Invoice-ready fields" icon="file-invoice">
    Include required tax and invoice details on printed and PDF documents.
  </Card>
</CardGroup>

## Required invoice fields

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

<CardGroup cols={2}>
  <Card title="Seller details" icon="building">
    Registered business name, address, and seller PAN or VAT number.
  </Card>

  <Card title="Invoice details" icon="hashtag">
    Unique invoice number and invoice date in the selected calendar format.
  </Card>

  <Card title="Buyer details" icon="user">
    Customer name, address, and PAN or VAT number where required.
  </Card>

  <Card title="Line items" icon="list">
    Item description, unit, quantity, rate, taxable amount, and VAT amount.
  </Card>

  <Card title="Tax summary" icon="percent">
    Taxable subtotal, VAT amount, and total payable amount.
  </Card>

  <Card title="Document output" icon="file-pdf">
    Printed or PDF invoice with required tax information clearly displayed.
  </Card>
</CardGroup>

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

## VAT registers

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

<Frame caption="VAT reports" />

<Tabs>
  <Tab title="VAT 1 sales register">
    <Info>
      VAT 1 records sales invoices and output VAT collected from customers.
    </Info>

    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
  </Tab>

  <Tab title="VAT 2 purchase register">
    <Info>
      VAT 2 records purchase bills and input VAT paid to suppliers.
    </Info>

    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
  </Tab>
</Tabs>

## Filter VAT reports

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

<Frame caption="VAT report filters" />

<CardGroup cols={2}>
  <Card title="BS period" icon="calendar-days">
    Filter VAT records by Bikram Sambat reporting period where supported.
  </Card>

  <Card title="AD period" icon="calendar">
    Filter VAT records by Gregorian calendar period where supported.
  </Card>

  <Card title="Sales records" icon="receipt">
    Review output VAT from customer invoices.
  </Card>

  <Card title="Purchase records" icon="file-invoice">
    Review input VAT from supplier bills.
  </Card>
</CardGroup>

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

## TDS tracking

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

<Frame caption="TDS tracking" />

<CardGroup cols={3}>
  <Card title="Apply TDS rate" icon="percent">
    Apply the applicable TDS rate while recording a supplier payment.
  </Card>

  <Card title="Track deductions" icon="file-lines">
    Maintain a TDS register for deductions made during the selected period.
  </Card>

  <Card title="Update ledgers" icon="book-open">
    Show supplier payments after TDS deduction in supplier ledgers.
  </Card>
</CardGroup>

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

## PAN validation

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

<CardGroup cols={2}>
  <Card title="Customer PAN" icon="user">
    Store and review customer PAN or VAT details before issuing sales invoices.
  </Card>

  <Card title="Supplier PAN" icon="truck">
    Store and review supplier PAN or VAT details before recording purchase bills.
  </Card>

  <Card title="9-digit format" icon="id-card">
    Check that PAN values follow Nepal's 9-digit format.
  </Card>

  <Card title="Document validation" icon="circle-check">
    Review tax identifiers before posting invoices, bills, credit notes, or debit notes.
  </Card>
</CardGroup>

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

## Audit trail

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

<AccordionGroup>
  <Accordion title="Timestamped records">
    Invoices, credit notes, debit notes, and other tax documents are timestamped when created or updated.
  </Accordion>

  <Accordion title="User attribution">
    Actions are linked to the staff member who created, updated, approved, voided, or adjusted the record.
  </Accordion>

  <Accordion title="Posted document history">
    Posted records should be adjusted through credit notes or debit notes instead of being quietly deleted or overwritten.
  </Accordion>
</AccordionGroup>

<Info>
  Open **Settings > Audit log** to review account activity and document history where available.
</Info>

## Credit and debit notes

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

<Frame caption="Credit and debit note adjustment workflow" />

<Steps>
  <Step title="Open the original document">
    Find the document under **Sales > Invoices** or **Purchase > Bills**.
  </Step>

  <Step title="Create an adjustment note">
    Create a credit note to reduce a customer balance, or a debit note to adjust a supplier bill.
  </Step>

  <Step title="Review tax amounts">
    Confirm taxable amount, VAT amount, PAN details, and linked document reference.
  </Step>

  <Step title="Post the note">
    Post or approve the note so the ledger and VAT register are updated for the selected period.
  </Step>
</Steps>

<Tabs>
  <Tab title="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.
  </Tab>

  <Tab title="Debit Note">
    Use a Debit Note to adjust a supplier Purchase Bill for returns, damaged goods, quantity mismatches, or pricing corrections.
  </Tab>
</Tabs>

<Warning>
  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.
</Warning>

## Filing exports

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

<Frame caption="VAT and TDS export options" />

<CardGroup cols={3}>
  <Card title="VAT 1 export" icon="file-export">
    Export the sales VAT register in Excel or PDF format.
  </Card>

  <Card title="VAT 2 export" icon="file-export">
    Export the purchase VAT register in Excel or PDF format.
  </Card>

  <Card title="TDS export" icon="file-export">
    Export the TDS register in Excel or PDF format.
  </Card>
</CardGroup>

## Filing preparation checklist

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

<AccordionGroup>
  <Accordion title="Check invoice dates">
    Confirm sales invoices and purchase bills are recorded in the correct filing period.
  </Accordion>

  <Accordion title="Verify PAN details">
    Review buyer and supplier PAN or VAT numbers for missing or invalid values.
  </Accordion>

  <Accordion title="Confirm taxable amounts">
    Check taxable and non-taxable totals before exporting VAT reports.
  </Accordion>

  <Accordion title="Review VAT totals">
    Compare output VAT and input VAT totals for the reporting period.
  </Accordion>

  <Accordion title="Review adjustments">
    Confirm credit notes and debit notes are linked to the correct original documents.
  </Accordion>

  <Accordion title="Export reports">
    Export VAT 1, VAT 2, and TDS reports for accountant review and filing preparation.
  </Accordion>
</AccordionGroup>

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