--- oa_review_kit: v1 guide_slug: nepal-vat guide_version: nepal-vat@2026-04-13T17:54:52.962Z archetype: vat_gst --- # Review kit: Nepal VAT Thank you for reviewing this Guide. This kit is one file with three parts: how to use it, an interview prompt for your AI, and the Guide itself. ## How to use this kit (3 steps, about 15 minutes) 1. Open the AI you already use (ChatGPT, Claude, Gemini, anything that reads markdown) and paste in everything from "INTERVIEW PROMPT" below, including the Guide at the end. 2. Your AI interviews you like a colleague, one question at a time. Just talk: war stories, walk-throughs, the mistakes you catch. No writing required. 3. Your AI writes your answers up as a single markdown file. Hand it back at openaccountants.com/skills/nepal-vat/handback (also linked from the Guide page: "Hand back your file"). What you added is published under your name and credential. If your AI cannot produce the exact output format, hand back whatever you have: a revised Guide file, a worksheet, or plain notes. We take those too, and a person reviews them by hand. The format below is the one we can apply straight away. --- # INTERVIEW PROMPT (paste from here down into your AI) You are interviewing a practising accountant about how they actually do the work covered by the attached Guide ("Nepal VAT", slug `nepal-vat`). Interview them like a colleague doing a handover. Do not lecture. Ask ONE question at a time and wait for the answer. Chase war stories and specifics: what kind of client, which portal step, how big the penalty was. The rates, thresholds, and citations are our job; we refresh those from primary sources. Capture ONLY what is NOT derivable from law: - order of operations, and what a wrong order corrupts - what to ask a client before computing anything - what to assume when a fact is unknown, and how it gets flagged - the most-missed traps, with penalty size and who falls in - how the portal or filing channel actually behaves - what has to reconcile before anyone signs - when to refuse the work and hand it to a human specialist If the accountant corrects a rate, threshold, or deadline in the Guide along the way, record it in the FACT CORRECTIONS table, but do not steer the interview toward numbers. ## Questions to work through Ask these in order, one at a time. Skip any the accountant has already covered; follow up where a story has specifics worth pinning down. Each question is tagged with the method slot(s) it feeds. 1. [sequence] Walk me through the last VAT return you prepared, start to finish. What did you open first, and why that order? 2. [intake_questions] [evidence] A new client hands you nothing but a bank statement. What do you do before you'll classify a single line? 3. [pattern_library] Which bank-statement line gets misclassified most often in your experience? What does it look like and where should it actually go? 4. [scope_gate] Tell me about a client you refused or referred out. What about their VAT situation made you stop? 5. [trap] When you review a return someone else drafted, what mistake do you catch most often? 6. [conservative_default] When you can't tell if a sale is domestic or cross-border, what do you assume, and how do you mark it? 7. [cross_check] Before you sign, what has to reconcile with what, and how close is close enough? 8. [filing_mechanics] Walk me through filing on the actual portal. What surprises first-timers: the order of forms, what locks, what you can't undo? 9. [judgment_rule] Ever had a client on a simplified scheme where the "simplification" made things worse? How do you decide who belongs on it? 10. [trap] What's the real penalty story you tell clients, the one that actually happened? 11. [evidence] Which claims will you draft from a bank statement but never file without the underlying paper? 12. [unsettled_law] Anything in VAT right now you deliberately won't finalise because the rules are moving? ## Method slots (for tagging the write-up) - `scope_gate` (Scope gate and refusals): when to stop and send the client to a human - `sequence` (Order of operations): what order to do things in, and what a wrong order corrupts - `intake_questions` (Client intake questions): what to ask a client before computing - `evidence` (Documents and evidence): which documents to insist on, and what is draft-grade vs file-grade - `judgment_rule` (Judgment rules): how a practitioner actually picks when the law allows two routes - `conservative_default` (Conservative defaults): what to assume when a fact is unknowable at draft time - `trap` (Traps and most-missed items): the mistakes everyone makes, what they cost, and who falls in - `filing_mechanics` (Portal and filing mechanics): how submission actually works: channel, order, what locks - `cross_check` (Cross-checks before signing): what has to reconcile with what before delivery, and how close is close enough - `pattern_library` (Pattern library): how messy real-world data (bank lines, payout platforms) maps to tax categories - `edge_case` (Edge-case playbook): the client situations that change the method, not just the numbers - `unsettled_law` (Unsettled-law flags): what not to finalise right now, and why - `handback_protocol` (Hand-back protocol): what the finished working paper contains and who reviews it ## Output format: oa-handback v1 When the interview is done, write the answers up as ONE markdown file in exactly this shape. Fill in the reviewer's real name, credential, and email (ask for them at the end if they have not come up). Every method block gets a `### [method:]` heading where `` is one of the 13 slot ids above. Keep `guide_slug` and `guide_version` exactly as given. Omit any section the interview produced nothing for, but keep the headings that remain exactly as shown. The `fact_key` column may be left blank when unknown. ```markdown --- oa_handback: v1 guide_slug: nepal-vat guide_version: nepal-vat@2026-04-13T17:54:52.962Z reviewer_name: reviewer_credential: # free text: CPA, EA, ACCA, Steuerberater... reviewer_email: verdict: --- ## METHOD ### [method:filing_mechanics] ### [method:intake_questions] - - ... ## FACT CORRECTIONS | fact_key | current | correct | source | |---|---|---|---| | | | | | ## FLAGS - [unsettled] - [refer] ## NOTES ``` If for any reason you cannot produce this exact format, output the accountant's corrections and methods as clear plain notes instead. The hand-back page accepts plain notes and revised Guide files too; this format is an optimization, never a gate. --- # THE GUIDE UNDER REVIEW --- 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. jurisdiction: NP domain: vat-gst tax_year: 2025 --- # nepal-vat ## Nepal VAT Return Skill v2.0 ## Verified rates & thresholds (accountant-reviewed) > Reviewed against the cited tax authorities by **Ashish Bista** on 2026-06-06. > Items flagged for further clarification are tracked separately and excluded here. > This block is generated from verified `skill_facts` — edit the facts, not the prose. ### VAT (IRD Return) - **Standard rate** — 13% - **Zero rate** — 0% (exports, goods to SEZ) - **Exempt** — Basic agriculture, education, healthcare, financial services, public transport _(VAT Act 2052 Sch.1)_ - **Concessional rate** — 5% on electricity (above 50 units) AND ride-sharing / ride-hailing services _(Finance Act 2083 (amended VAT Act 2052 s.7))_ - **Registration threshold — goods/carriage** — NPR 5,000,000 (12-month turnover) _(VAT Act 2052 s.10 (Baker Tilly/PKF))_ - **Registration threshold — services or mixed** — NPR 3,000,000 (raised from NPR 2M eff. 16 Jul 2024) _(VAT Act 2052 s.10 (Baker Tilly))_ - **Filing frequency** — Monthly, within 25 days of the end of each Nepali calendar month _(VAT Act 2052 (Baker Tilly))_ - **Imports** — VAT at 13% on CIF plus duty _(VAT Act 2052)_ - **Reverse charge — non-resident services** — Self-assess 13% _(VAT Act 2052)_ - **Input tax credit** — Valid VAT invoice with PAN; business purpose; IRD-approved billing software _(VAT Act 2052)_ - **Blocked input** — Personal consumption, entertainment, passenger vehicles _(VAT Act 2052)_ - **Digital Payment VAT Discount** — 10% instant VAT refund directly to consumers for making digital/cashless payments _(Finance Act 2083 / VAT Act 2052)_ - **VAT Bill Lottery Scheme** — Every VAT bill automatically acts as a lottery ticket for consumers _(Budget Speech 2083/84)_ - **Unpaid VAT / Tax Amnesty Settlement** — Settle pending VAT cases by paying outstanding principal tax + 1% fee (all other penalties waived) _(Finance Act 2083 (Section 41/44))_ ## Section 1 — Quick reference - **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 - **Registration threshold** — NPR 5,000,000 (goods/carriage) · NPR 3,000,000 (services or mixed) — services/mixed raised from NPR 2M eff. Shrawan 1, 2081 (16 Jul 2024) - **Companion skill** — vat-workflow-base v0.1 or later — MUST be loaded - **Validated by** — Verified by Ashish Bista (ICAN: 1765) on 2026-06-06 **Section 1 quick reference table** | 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 | | Registration threshold | NPR 5,000,000 (goods/carriage) · NPR 3,000,000 (services or mixed) — services/mixed raised from NPR 2M eff. Shrawan 1, 2081 (16 Jul 2024) | | Companion skill | vat-workflow-base v0.1 or later — MUST be loaded | | Validated by | Verified by Ashish Bista (ICAN: 1765) on 2026-06-06 | **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) **Nepalese banks pattern table** | 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) **Government pattern table** | 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 **Utilities pattern table** | 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 **Digital payments pattern table** | 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 **SaaS and international services pattern table** | Pattern | Treatment | Notes | | --- | --- | --- | | GOOGLE, MICROSOFT, META, AWS | Self-assess 13% | Non-resident | | ZOOM, SLACK, CANVA | Self-assess 13% | Same | ### 3.6 Payroll and exclusions **Payroll and exclusions pattern table** | 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. **Example 1 table** | 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` **Example 2 table** | 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` **Example 3 table** | 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` **Example 4 table** | 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. - **Standard rate default** — Default for all taxable supplies. ### 5.2 Zero rate — Exports, supplies to SEZ. - **Zero rate** — Exports, supplies to SEZ. ### 5.3 Exempt — Basic agriculture, education, healthcare, financial services, public transport. - **Exempt** — Basic agriculture, education, healthcare, financial services, public transport. ### 5.4 Input tax credit — Valid VAT invoice with PAN required. Business purpose. - **Input tax credit** — Valid VAT invoice with PAN required. Business purpose. ### 5.5 Blocked input — Personal consumption, entertainment, passenger vehicles. - **Blocked input** — Personal consumption, entertainment, passenger vehicles. ### 5.6 Imports — VAT at 13% on CIF plus duty. - **Imports** — VAT at 13% on CIF plus duty. ### 5.7 Reverse charge — Non-resident services: self-assess 13%. - **Reverse charge** — Non-resident services: self-assess 13%. ### 5.8 VAT billing software — IRD requires use of approved billing software for invoice generation. - **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%. - **Vehicle costs** — Default: 0%. ### 6.2 Entertainment — Default: block. - **Entertainment** — Default: block. ### 6.3 SaaS entities — Default: self-assess 13%. - **SaaS entities** — Default: self-assess 13%. ### 6.4 Cash withdrawals — Default: exclude. - **Cash withdrawals** — Default: exclude. ### 6.5 Mixed-use expenses — Default: 0% recovery. - **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?" "What is your Permanent Account Number?" ### 9.2 Filing period — Monthly. "Which month?" Monthly. "Which month?" ### 9.3 Industry — "What does the business do?" "What does the business do?" ### 9.4 Exports — "Do you export?" "Do you export?" ### 9.5 Credit brought forward — Always ask. 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 - v2.1 (June 2026): Added jurisdiction/verification frontmatter; added VAT registration thresholds (NPR 5M goods / 3M services, FY 2082/83); removed duplicate disclaimer; 13% rate re-confirmed for FY 2082/83. - 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. 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). 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