Quick Answer (TL;DR)

If you are VAT-registered, file a monthly VAT return by the 25th of the following Nepali month at taxpayerportal.ird.gov.np — even if turnover was zero (Nil return). Payable = 13% Output VAT − eligible Input VAT; Nil if no sales. Late = per-period fee + interest on unpaid VAT. Keep Rule 17 VAT invoices with VAT shown separately.

Who Must File?

  • Every VAT-registered person — goods, services or mixed — monthly by default
  • Approved bi-monthly/trimester filers: only where the Tax Officer has issued a written approval (certain sectors) — confirm on your approval letter
  • Not VAT-registered (PAN-only): do not file VAT returns; file annual income tax + e-TDS as applicable

When — The 25th Rule

MonthlyBy 25th of the next Nepali month (e.g., Shrawan return by Bhadra 25)
Bi-monthly / trimesterBy 25th of the month following the approved period as per approval letter
Nil periodSame deadline — Nil return required
HolidayIf 25th is a public holiday, IRD notice may extend to next working day — verify that month’s notice

How to File (E-Filing) Step-by-Step

What You Need Before Filing

  • IRD login at taxpayerportal.ird.gov.np (taxpayerportal.ird.gov.np via ird.gov.np)
  • Sales register + VAT invoices issued (Rule 17 — VAT shown separately, buyer PAN/VAT)
  • Purchase register + VAT invoices received (eligible Input VAT only)
  • Debit/credit notes issued or received in the period (returns, discounts)
  • Opening credit from previous period (if Input > Output last month)
  • Payment method ready via connectIPS/eSewa/IRD revenue if payable
  1. Log in to taxpayerportal.ird.gov.np → VAT → Return Filing → select Tax Period (Nepali month) and FY.
  2. Enter sales: total taxable turnover + Output VAT (13% and any zero-rated export turnover separately).
  3. Enter purchases: eligible Input VAT (only for taxable-supply purchases; apportion if mixed exempt/taxable).
  4. Add adjustments: debit notes (+sales) / credit notes (−sales) for the period.
  5. Review carry: opening credit from last period auto-applies if Input > Output previously.
  6. System calculates: Payable = Output − Input − adjustments − opening credit. If positive, pay and get the voucher; if negative, the credit carries forward (exporters may claim refund per IRD procedure).
  7. Submit and save: e-receipt/acknowledgement + payment voucher (if any) for your records.

How VAT Payable Is Calculated

VAT Payable = Output VAT (13% on taxable sales) − Eligible Input VAT (on purchases for taxable supplies) ± Debit/Credit notes − Opening Credit
Output > InputPay the difference by the 25th
Input > OutputNo payment; excess = credit carried forward to next period
Exporter / zero-ratedMay claim refund of input credit per IRD refund procedure (separate from normal carry)

Nil Return, Credit & Refund

  • Nil return: select Nil/zero turnover for the period and submit by the 25th — required, not optional
  • Credit: excess Input over Output is not cash back by default; it rolls forward as opening credit
  • Refund: primarily for exporters making zero-rated supplies (VAT Act zero-rating) — file per IRD refund window with supporting invoices

Late Filing & Interest

Late return (per period)Per-period fee per Finance Act (commonly in the ~Rs 10k–20k range; verify the current schedule — it changes) + recovery of any undeclared VAT
Unpaid VATAnnual interest on the amount due (rate per current Finance Act; interest runs until paid)
No activity ≠ no filingA registered person who had zero sales still owes a Nil return — the late fee still applies per missed period

VAT Invoice (Rule 17) Quick Check

  • Seller: name + PAN + VAT registration number, invoice number + date (Nepali), buyer PAN/VAT where applicable
  • Line items with taxable value per item, VAT 13% shown separately (not bundled), and total invoice value
  • Standard vs abbreviated invoice format per VAT Rules 2053 Rule 17 — confirm your invoice template matches the latest IRD specimen
  • A VAT invoice is what lets your customer withhold only 1.5% TDS (vs 15% on a PAN-only bill) — issuing a correct VAT invoice matters for your cash flow

Common Mistakes to Avoid

  • Missing the 25th — even for a Nil month
  • Claiming input VAT on exempt-supply purchases or personal expenses (non-creditable)
  • Not apportioning input when you sell both taxable and exempt goods/services
  • Bunching debit/credit notes into the wrong period
  • Forgetting to carry opening credit from a prior Input > Output period
  • Issuing a VAT invoice without VAT shown separately (Rule 17 failure) — can trigger IRD observations

Monthly Checklist

  • Sales + Output VAT (13% taxable + zero-rated export separately) reconciled to VAT invoices
  • Eligible Input VAT from purchase invoices — exempt-use portion removed
  • Debit/credit notes for the period entered
  • Opening credit applied; payable vs carry computed
  • File via taxpayerportal.ird.gov.np by the 25th; pay payable via connectIPS/eSewa and keep receipt
  • If Nil — file Nil return (same deadline, zero payment)

Official Sources & Final Note

Sources: Inland Revenue Department (ird.gov.np), IRD Taxpayer Portal (taxpayerportal.ird.gov.np), VAT Act 2052 + VAT Rules 2053 Rule 17, and the annual Finance Act (late-fee/interest figures). Approve bi-monthly/trimester filing only where the Tax Officer's approval letter allows it.

Last updated: September 27, 2026. Figures and hedges rechecked as of October 2026 — no numeric changes; re-verify the current period's IRD notice before filing. Deadlines, invoice formats, return fields and fee/interest figures are updated by IRD circulars and Finance Acts. Verify the current period's notice on ird.gov.np before filing. SolutionsNepal is an educational guide, not a tax advisor.

Frequently asked questions

When is VAT return due?

Monthly — by the 25th of the following Nepali month via taxpayerportal.ird.gov.np. Some sectors approved for bi-monthly or trimester filing follow their approval letter; most businesses file monthly.

Do I file even with no transactions?

Yes — file a Nil return by the 25th if you are VAT-registered. Missing a Nil month still triggers the late-filing fee.

What is the late fee?

Per the current Finance Act late-filing schedule (commonly cited ~Rs 10k–20k per period) plus interest on unpaid VAT. Verify the exact rupee figure at IRD — it moves by Finance Act — but a fee applies per period of delay.

What do I file with?

Sales/Purchase registers, VAT invoices (Rule 17 format) with PAN + VAT number, debit/credit notes where applicable, and the payment voucher if VAT is payable. All through the IRD Taxpayer Portal.

How is VAT payable calculated?

Output VAT (13% on taxable sales) minus Input VAT (13% on eligible purchases for taxable supplies). If output > input you pay the difference; if input > output it becomes a credit carried forward or, for exporters, a refund claim.

Can I claim all input VAT?

Only on purchases used for taxable supplies. Input on exempt supplies (e.g., basic agricultural, health, education per VAT Schedules) or on personal use cannot be claimed. Mixed businesses apportion input.

What about deadline on a holiday?

If the 25th falls on a public holiday, IRD typically extends to the next working day — check the IRD notice for that month before assuming.

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Written by SolutionsNepal Team

Nepal tax researchers