How to Show VAT on Quotations in Nepal

Clients in Nepal often ask, "Does that include VAT?" Answering this on the quotation prevents an awkward discussion later. This is general guidance, not tax advice, so confirm your own situation with an accountant or the Inland Revenue Department.

Show whether VAT is included

Nepal's standard VAT rate is 13% at the time of writing. If you're VAT registered, make your pricing clear with one of these:

• "All prices exclude 13% VAT, shown separately."
• "All prices include 13% VAT."

The calculation

For VAT-exclusive pricing:

• Subtotal: Rs 100,000
• VAT at 13%: Rs 13,000
• Total: Rs 113,000

To find the VAT inside an inclusive price of Rs 113,000:

113,000 × 13 ÷ 113 = Rs 13,000.

Discounts

A discount usually reduces the taxable amount, so apply it first:

• Subtotal: Rs 100,000
• Discount of 10%: −Rs 10,000
• Taxable amount: Rs 90,000
• VAT at 13%: Rs 11,700
• Total: Rs 101,700

Your PAN or VAT number

Business clients may need your registration number. Include it in your quotation's notes or company details when it's relevant. Do not charge VAT if you aren't registered for it. Some goods and services are exempt or treated differently, so check how your business is treated.

Quotation or tax invoice

A quotation is simply an offer, and it isn't a VAT invoice. A VAT invoice has its own requirements, so your accountant or billing system should handle that once the sale takes place.

Number formats

Clients in Nepal commonly read amounts in lakhs, such as Rs 1,13,000. Using a familiar format makes totals easier to read. In Quotation Maker App Offline, choosing Nepalese Rupee applies this format, and you can set 13% as your default tax.

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