VAT compliance and IRD filing

VAT on invoices

VAT in Nepal is 13% on taxable goods and services. When you create a taxable sales invoice, Kuver Books works out the VAT on the taxable subtotal and shows it as its own line; non-taxable lines stay outside it. Save the PAN or VAT number of each customer and supplier on their record, so it appears on documents.

What a compliant invoice carries

• Seller details: your registered business name, address and PAN or VAT number, from Company configuration.
• Invoice details: a unique invoice number and the date, in the calendar format you have chosen.
• Buyer details: the customer’s name, address and PAN or VAT number where required.
• Line items: description, unit, quantity, rate, taxable amount and VAT amount.
• Tax summary: taxable subtotal, VAT and the total payable.
• The printed or PDF document with all of that visible, from the template chosen under Invoice config.

Check seller, buyer, PAN, taxable amount, VAT and total before you finalise a tax document.

The VAT registers

Kuver Books keeps VAT reports by transaction type so you can review a period before it is filed.

• VAT 1, the sales register, is built from sales invoices: invoice number, buyer PAN, taxable amount, VAT amount and the period. It shows the output VAT you collected.
• VAT 2, the purchase register, is built from purchase bills: bill number, supplier PAN, taxable amount, VAT amount and the period. It shows the input VAT you paid and can set off.

You can filter either register by Bikram Sambat or Gregorian period. Before anything goes to the accountant, review VAT 1 and VAT 2 for the same period together.

TDS tracking

Where a supplier payment is subject to tax deducted at source, apply the TDS rate while recording the payment. Kuver Books keeps a TDS register of the deductions for the period and shows the supplier ledger after the deduction. Rates and obligations vary by payment type, so confirm them with your accountant. The TDS guide lists the common rates.

PAN validation

Customer and supplier PAN numbers are checked against the nine-digit format before compliant documents are finalised. Review the tax details on both records before you post invoices, bills, credit notes or debit notes. A missing or invalid PAN causes errors when you file.

Audit trail

Every tax document is timestamped when it is created or changed, and every action is tied to the user who created, updated, approved, voided or adjusted the record. To correct a posted document, use a credit note or a debit note. You never edit or delete the posted document, so the original stays traceable.

Credit and debit notes

1. Open the original document under Sales, Invoices, or Purchase, Bills.
2. Create a credit note or a debit note. A credit note reduces a customer balance after a return, a billing correction or a discount given after the invoice. A debit note adjusts a supplier bill for returns, damaged goods, a quantity mismatch or a price correction.
3. Check the taxable amount, the VAT amount, the PAN details and the reference to the original document.
4. Post or approve the note so the ledger and the VAT register for the period are updated.

The step-by-step pages are Create a credit note and Create a debit note.

Filing exports

Export VAT 1, VAT 2 and the TDS register from the reports area in Excel or PDF for your accountant. Before you do, run through the checklist:

• Sales invoices and purchase bills are in the right filing period.
• Buyer and supplier PANs are present and valid.
• Taxable and non-taxable totals are correct.
• Output VAT and input VAT for the period have been compared.
• Credit and debit notes are linked to the right original documents.

Export VAT 1 and VAT 2 at the end of every month and hand them over before the filing deadline, not on it.