--- name: nepal-vat description: "Use this skill whenever asked to prepare, review, or classify transactions for a Nepal VAT return for any client. Trigger on phrases like \"Nepal VAT\", \"IRD filing\", \"PAN registration\", or any request involving Nepal VAT. MUST be loaded alongside vat-workflow-base v0.1 or later. ALWAYS read this skill before touching any Nepal VAT work." license: AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content) metadata: source: openaccountants jurisdiction: INTL category: tax quality: source-cited draft openaccountants_url: "https://openaccountants.com/skills/nepal-vat" obligation: CT --- # Nepal VAT Return Skill v2.0 > **General reference only.** This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction. ## Section 1 — Quick reference | Field | Value | |---|---| | Country | Nepal (Federal Democratic Republic of Nepal) | | Standard rate | 13% | | Zero rate | 0% (exports, goods to SEZ) | | Exempt | Basic agricultural products, education, healthcare, financial services, public transport | | Return form | VAT return (monthly, via IRD e-filing) | | Filing portal | https://ird.gov.np (IRD e-filing) | | Authority | Inland Revenue Department (IRD) | | Currency | NPR (Nepalese Rupee) | | Filing frequency | Monthly (by 25th of following month) | | Deadline | 25th of the month following the tax period | | Companion skill | vat-workflow-base v0.1 or later — MUST be loaded | | Validated by | Pending local practitioner validation | **Conservative defaults:** | Ambiguity | Default | |---|---| | Unknown rate on a sale | 13% | | Unknown VAT status of a purchase | Not deductible | | Unknown counterparty location | Domestic Nepal | | Unknown business-use proportion | 0% recovery | --- ## Section 2 — Required inputs and refusal catalogue ### Required inputs **Minimum viable** — bank statement for the month. Acceptable from: Nabil Bank, NIC Asia Bank, Nepal Bank, Rastriya Banijya Bank, Himalayan Bank, Everest Bank, Standard Chartered Nepal, or any other. ### Nepal-specific refusal catalogue **R-NP-1 — Special Economic Zone entity.** Trigger: client in SEZ. Message: "SEZ entities have special VAT treatment. Please escalate." **R-NP-2 — Hydropower and infrastructure projects.** Trigger: client with government infrastructure concession. Message: "Infrastructure projects have bespoke VAT exemptions. Please escalate." --- ## Section 3 — Supplier pattern library ### 3.1 Nepalese banks (fees exempt — exclude) | Pattern | Treatment | Notes | |---|---|---| | NABIL, NABIL BANK | EXCLUDE for bank charges | Exempt | | NIC ASIA, NIC ASIA BANK | EXCLUDE for bank charges | Same | | NEPAL BANK, RASTRIYA BANIJYA | EXCLUDE for bank charges | Same | | HIMALAYAN BANK, EVEREST BANK | EXCLUDE for bank charges | Same | | STANDARD CHARTERED NP | EXCLUDE for bank charges | Same | | INTEREST, LOAN, REPAYMENT | EXCLUDE | Out of scope | ### 3.2 Government (exclude) | Pattern | Treatment | Notes | |---|---|---| | IRD, INLAND REVENUE | EXCLUDE | Tax payment | | CUSTOMS, NEPAL CUSTOMS | EXCLUDE | Duty | | SSF, SOCIAL SECURITY FUND | EXCLUDE | Social security | | COMPANY REGISTRAR, OCR | EXCLUDE | Registration fee | ### 3.3 Utilities | Pattern | Treatment | Notes | |---|---|---| | NEA, NEPAL ELECTRICITY | Domestic 13% | Electricity | | KUKL, KATHMANDU WATER | Domestic 13% | Water | | NTC, NEPAL TELECOM, NCELL | Domestic 13% | Telecoms | ### 3.4 Digital payments | Pattern | Treatment | Notes | |---|---|---| | ESEWA, KHALTI, IME PAY | EXCLUDE for fees | Financial service fees exempt | | FONEPAY | EXCLUDE for fees | Same | ### 3.5 SaaS and international services | Pattern | Treatment | Notes | |---|---|---| | GOOGLE, MICROSOFT, META, AWS | Self-assess 13% | Non-resident | | ZOOM, SLACK, CANVA | Self-assess 13% | Same | ### 3.6 Payroll and exclusions | Pattern | Treatment | Notes | |---|---|---| | SALARY, WAGES, TLAB | EXCLUDE | Outside VAT scope | | OWN TRANSFER, INTERNAL | EXCLUDE | Internal | | CASH WITHDRAWAL | TIER 2 — ask | Default exclude | --- ## Section 4 — Worked examples ### Example 1 — Standard domestic sale at 13% **Input line:** `05.04.2026 ; KATHMANDU TRADING ; CREDIT ; Invoice NP-041 ; NPR 113,000` **Reasoning:** Domestic. 13%. Net = NPR 100,000, VAT = NPR 13,000. | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 05.04.2026 | KATHMANDU TRADING | +113,000 | +100,000 | 13,000 | 13% | Output | N | — | ### Example 2 — Export, zero-rated **Input line:** `15.04.2026 ; INDIAN BUYER LTD ; CREDIT ; Exported handicrafts ; NPR 500,000` | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 15.04.2026 | INDIAN BUYER LTD | +500,000 | +500,000 | 0 | 0% | Zero-rated | N | — | ### Example 3 — Non-resident digital service **Input line:** `18.04.2026 ; GOOGLE ; DEBIT ; Google Ads ; NPR -23,000` | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 18.04.2026 | GOOGLE | -23,000 | -23,000 | 2,990 | 13% | Output + Input | N | — | ### Example 4 — Bank charges **Input line:** `30.04.2026 ; NABIL BANK ; DEBIT ; Service charge ; NPR -500` | Date | Counterparty | Gross | Net | VAT | Rate | Field | Default? | Excluded? | |---|---|---|---|---|---|---|---|---| | 30.04.2026 | NABIL BANK | -500 | — | — | — | — | N | "Exempt" | --- ## Section 5 — Tier 1 classification rules (compressed) ### 5.1 Standard rate 13% — Default for all taxable supplies. ### 5.2 Zero rate — Exports, supplies to SEZ. ### 5.3 Exempt — Basic agriculture, education, healthcare, financial services, public transport. ### 5.4 Input tax credit — Valid VAT invoice with PAN required. Business purpose. ### 5.5 Blocked input — Personal consumption, entertainment, passenger vehicles. ### 5.6 Imports — VAT at 13% on CIF plus duty. ### 5.7 Reverse charge — Non-resident services: self-assess 13%. ### 5.8 VAT billing software — IRD requires use of approved billing software for invoice generation. --- ## Section 6 — Tier 2 catalogue (compressed) ### 6.1 Vehicle costs — Default: 0%. ### 6.2 Entertainment — Default: block. ### 6.3 SaaS entities — Default: self-assess 13%. ### 6.4 Cash withdrawals — Default: exclude. ### 6.5 Mixed-use expenses — Default: 0% recovery. --- ## Section 7 — Excel working paper template Per vat-workflow-base Section 3, with Nepal fields: Output 13%, Zero-rated, Exempt, Input domestic, Input imports, Net VAT. --- ## Section 8 — Bank statement reading guide Nabil and NIC Asia exports CSV. NPR primary. Devanagari script descriptions possible — treat transliterated equivalents the same. Internal transfers: exclude. Convert foreign currency at Nepal Rastra Bank rate. --- ## Section 9 — Onboarding fallback ### 9.1 PAN — "What is your Permanent Account Number?" ### 9.2 Filing period — Monthly. "Which month?" ### 9.3 Industry — "What does the business do?" ### 9.4 Exports — "Do you export?" ### 9.5 Credit brought forward — Always ask. --- ## Section 10 — Reference material ### Sources 1. Nepal Value Added Tax Act 2052 (1996, as amended). 2. IRD guidelines. 3. IRD e-filing portal. ### Known gaps 1. SEZ entities refused. 2. Hydropower/infrastructure refused. ### Change log - v2.0 (April 2026): Full rewrite to Malta v2.0 ten-section structure. --- ## Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. All outputs must be reviewed by a qualified professional before filing. The most up-to-date version is maintained at [openaccountants.com](https://openaccountants.com). --- ## Disclaimer This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon. The most up-to-date, verified version of this skill is maintained at [openaccountants.com](https://openaccountants.com). Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes. --- _Source: [OpenAccountants](https://openaccountants.com/skills/nepal-vat) — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: **source-cited draft**. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (`openaccountants-mcp`)._