Nepal VAT Calculator — 13% VAT Online
Calculate 13% VAT in Nepal. Add VAT to a base amount or remove VAT from an inclusive price.
Quick VAT Reference Table
Common amounts with 13% VAT calculated for quick reference:
| Base Amount | VAT (13%) | Total (with VAT) |
|---|---|---|
| Rs 1,000 | Rs 130 | Rs 1,130 |
| Rs 5,000 | Rs 650 | Rs 5,650 |
| Rs 10,000 | Rs 1,300 | Rs 11,300 |
| Rs 25,000 | Rs 3,250 | Rs 28,250 |
| Rs 50,000 | Rs 6,500 | Rs 56,500 |
| Rs 100,000 | Rs 13,000 | Rs 113,000 |
| Rs 500,000 | Rs 65,000 | Rs 565,000 |
| Rs 1,000,000 | Rs 130,000 | Rs 1,130,000 |
What is VAT in Nepal?
Value Added Tax (VAT) is an indirect tax levied on the value added at each stage of production and distribution of goods and services in Nepal. The current VAT rate is 13%, which has been in effect since it was first introduced in 1997. VAT is administered by Nepal's Inland Revenue Department (IRD).
VAT is a consumption tax — the final consumer bears the tax burden. Businesses registered for VAT collect tax on sales and can claim input tax credits on their purchases, effectively paying tax only on the value they add.
VAT Registration Requirements
- Mandatory registration: Businesses with annual taxable turnover exceeding Rs 50 lakhs must register for VAT.
- Voluntary registration: Businesses below the threshold can register voluntarily to claim input tax credits.
- Importers: Must register for VAT regardless of turnover.
- Registration process: Apply at the nearest IRD office or online through the IRD portal with PAN, business registration, and citizenship documents.
Understanding VAT in Nepal
Nepal applies a standard VAT rate of 13% on most goods and services, making it one of the key sources of government revenue. VAT is charged at every stage of the supply chain – from manufacturer to wholesaler to retailer – but the tax burden ultimately falls on the end consumer. Businesses registered for VAT collect the tax on their sales and can claim input tax credits on purchases used for business purposes, so they effectively pay tax only on the value they add. Certain essential items are exempt from VAT, including basic agricultural products, educational services, health services, and some financial services. Exported goods and services are zero-rated, meaning exporters can claim refunds on input VAT paid. Understanding whether a product or service carries VAT helps consumers make informed purchasing decisions and helps businesses price their offerings correctly.
VAT Registration and Compliance
Any business in Nepal with an annual taxable turnover exceeding Rs 50 lakhs (Rs 50,00,000) is required to register for VAT with the Inland Revenue Department (IRD). To register, businesses must first obtain a Permanent Account Number (PAN) and then apply for VAT registration through the IRD office or online portal. Once registered, businesses must issue VAT invoices for all taxable sales, file monthly VAT returns by the 25th of the following month, maintain proper purchase and sales records, and deposit collected VAT to the government on time. Failure to register when required or non-compliance with filing obligations can result in penalties, fines, and interest charges. Importers must register for VAT regardless of their turnover. Businesses below the threshold may register voluntarily if they wish to claim input tax credits on their purchases, which can be beneficial for businesses that deal primarily with other VAT-registered entities.