Nepal VAT billing basics

The rate and the menu price

VAT in Nepal is 13%. Courts and IRD enforcement have made clear that the price printed on the menu must already include VAT and service charge; restaurants have been fined for adding them on top at the bill.

So a dish listed at NPR 565 is NPR 500 plus NPR 65 VAT (no service charge), and the bill has to show that split: taxable amount, VAT, total.

What goes on a tax invoice

• •Seller name, address and PAN; the buyer’s PAN where the buyer provides it.
• •A sequential invoice number within the fiscal year.
• •Date: Nepal’s fiscal year runs on the Bikram Sambat calendar.
• •Taxable amount, VAT and total, itemised.

IRD’s e-billing rules for software

IRD’s Electronic Billing Procedure 2074 (as summarised by e-billing vendors) sets rules for approved billing software:

• •Invoices sync with CBMS, IRD’s Central Billing Monitoring System.
• •Database records cannot be edited or deleted.
• •A cancellation records its reason.
• •Reprints are marked “Copy of Original”.
• •Every user action is kept in an audit trail.
• •For cloud systems, the central server is located in Nepal, with IRD access.

Electronic billing and real-time CBMS obligations depend on current IRD notices and your business’s registration and activity. Confirm the applicable requirements with IRD or your tax adviser before enabling IRD mode.

Where DataRestro stands

DataRestro is not approved or listed by IRD. What ships today: VAT-inclusive prices with correct VAT extraction, fiscal invoices (PAN on the bill, per-fiscal-year numbering, BS dates, “Copy of Original” on reprint, credit notes instead of deletion), an IRD-format sales register, an audit log, and a CBMS reporting client with retry that is awaiting validation with IRD. Approval is a separate process with IRD, and we will say so plainly until we hold it.

If your business is required to use approved billing software, continue using it for tax invoices alongside DataRestro until DataRestro receives approval.