PAN bill and VAT bill format in Nepal: what to include

Nepal's Value Added Tax Rules, 2053 set the format of a VAT bill (Rule 17 and Schedule 5). Here is what has to be on it, how a PAN bill differs, and when your bills must come from IRD-approved software.

VAT bill or PAN bill?

What a VAT bill must show

• The words Tax Invoice, clearly visible on the front
• The invoice number, running in sequence
• The transaction date and the invoice issue date
• The seller's name, address and PAN (VAT registration number)
• The buyer's name and address, and the buyer's PAN if they are registered
• How it was paid: cash, cheque, credit or other
• Each item: description, quantity, rate and amount. For goods, the type, size, model and brand
• The discount, the taxable amount, VAT at 13% and the total
• The seller's signature

The rules ask for three copies of each tax invoice: the original for the buyer, one kept for the tax office and one for your own accounts.

The short (abbreviated) tax invoice

A retailer can ask the tax office for permission to issue a short tax invoice for small sales (Rule 18). It shows the date, invoice number, seller's name, address and PAN, the tax rate, and each item with its quantity and price. A buyer cannot claim VAT back on a short invoice, and anyone who asks for a full tax invoice must be given one. Under the rules as amended to 2072, a short invoice cannot be used for a sale above NPR 500. Check the current limit with your tax office before relying on it.

What a PAN bill should show

The formats in the VAT Rules are for VAT bills. A PAN bill carries the same basic details, without the VAT lines:

• The seller's name, address and PAN
• A bill number, used once and in order
• The date
• The buyer's name (and PAN, when the buyer is a business)
• Each item with quantity, rate and amount
• Any discount, and the total

Hotel and restaurant bills: service charge first, then VAT

When a hotel or restaurant adds a 10% service charge, VAT is worked out on the amount including the service charge:

When must bills come from IRD-approved software?

• Hotels, restaurants and canteens with a turnover above NPR 5 crore a year must bill through software listed with the IRD and connected to its Central Billing Monitoring System (CBMS).
• Any business that bills customers directly must do the same above NPR 20 crore (IRD notice of 4 Baishakh 2083). The 2083/84 budget proposed lowering this to NPR 10 crore. As of October 2026 the IRD had not yet issued a notice putting that into force.
• Below these lines, you can use a numbered bill book, or billing software listed with the IRD once your tax office has given permission. Bills printed from Excel or an unlisted program do not meet the rules.

How SajhiloStay handles it

SajhiloStay applies the service charge and VAT in the right order on every room and restaurant bill (more on VAT bills). VAT-registered properties can add IRD e-billing through Nepal E-Billing, which sends each bill to the IRD as it is issued.

Sources: Value Added Tax Rules, 2053, Rules 17 and 18 with Schedules 5, 5a, 5b and 6; IRD notices on electronic billing. Tax rules change, so confirm anything you rely on with your tax office or tax adviser. Last checked 22 October 2026.