A VAT-registered retailer in Nepal can issue a shorter "abbreviated tax invoice" for a retail sale of up to Rs 10,000 (VAT included), but only with the tax officer's permission. Above Rs 10,000, or whenever the customer asks for one, a full tax invoice is required — and only a full tax invoice lets a buyer claim input VAT.
Prepare one with the free invoice generator, and split the VAT out of a VAT-inclusive total with the VAT calculator.
What is an abbreviated tax invoice?
Rule 17 of the VAT Rules, 2053 sets the normal full tax invoice. Rule 18 is an exception for retail: if a registered person sells goods or services by retail and applies to the tax officer, the officer may allow it to issue an abbreviated tax invoice (संक्षिप्त कर बीजक) in the format of Schedule 6 instead. It suits counters with many small sales — grocery shops, pharmacies, cafés and restaurants.
When is each allowed?
| Abbreviated tax invoice | Full tax invoice | |
|---|---|---|
| Who may issue | A VAT-registered retailer with the tax officer's permission | Any VAT-registered seller |
| Amount | Up to Rs 10,000 per transaction | Any amount |
| Customer asks for a full invoice | Must issue a full invoice instead | — |
| Buyer details | Not needed | Buyer's name, address and PAN |
| VAT shown | Total price including VAT | Taxable amount and VAT shown separately |
| Buyer can claim input VAT | No | Yes |
The Rs 10,000 limit was raised from Rs 5,000 by the 21st amendment to the VAT Rules on Jestha 15, 2076. Formats were revised again in the 46th amendment (2081), so check the current Schedule 6 format and limit with IRD before you print bills.
What does each bill show?
Abbreviated tax invoice. It follows the shorter Schedule 6 format. In practice it identifies the seller and its PAN, carries a serial number and date, names each item sold — separately, even when there are many small items — and gives the total including VAT. Customer details are not required.
The seller must also keep records: a duplicate of each bill (or the till-roll copy with a daily total) and the VAT-inclusive value of each sale. The tax officer can withdraw the permission if these records are not kept.
Full tax invoice. It adds the buyer's name, address and PAN, the quantity, unit and rate of each line, the taxable amount, VAT at 13% and the total. The full list is in what a tax invoice in Nepal must show.
How is the VAT inside an abbreviated bill worked out?
The price on an abbreviated bill already includes VAT. The VAT part is the tax fraction of that price: rate ÷ (100 + rate), which at 13% is 13/113.
The seller uses this to count its output VAT for the month. More examples are in how to find the VAT in a VAT-inclusive price.
Example: a shop
A grocery with permission sells biscuits, oil and rice to a walk-in customer for Rs 2,260. An abbreviated bill is fine. Later a company buys office supplies for Rs 12,430 including VAT. That is above Rs 10,000, so the shop must issue a full tax invoice with the company's name and PAN, showing Rs 11,000 + VAT Rs 1,430.
Example: a restaurant
A family's dinner bill of Rs 4,520 can be an abbreviated invoice if the restaurant has permission. If a guest says the meal is a business expense and asks for a tax invoice in the company's name, the restaurant must issue a full tax invoice, even though the bill is under Rs 10,000. An office party bill of Rs 18,000 always needs a full tax invoice.
Frequently asked questions
What is the limit for an abbreviated tax invoice in Nepal?
Rs 10,000 per transaction, including VAT, under rule 18 of the VAT Rules as amended in 2076. Above that a full tax invoice is needed. Check the current limit with IRD, since the Rules are amended from time to time.
Do I need permission to issue abbreviated tax invoices?
Yes. A VAT-registered retailer applies to its tax officer, who may permit abbreviated invoices for retail sales. Without that permission, issue full tax invoices.
Can a business claim input VAT on an abbreviated invoice?
No. Input VAT is claimed with a full tax invoice. A business buyer should ask for a full tax invoice in its own name and PAN — the seller cannot refuse.
Does a restaurant bill have to be a full tax invoice?
Not always. A restaurant with permission can issue abbreviated invoices for bills up to Rs 10,000, but must issue a full tax invoice for larger bills or whenever a customer asks for one.
Sources
- Value Added Tax Rules, 2053 — rules 17 and 18, Schedules 5 and 6; 21st amendment (Jestha 15, 2076) and 46th amendment (2081). Inland Revenue Department, ird.gov.np; Nepal Law Commission, lawcommission.gov.np.
- Value Added Tax Act, 2052 — sections 14 and 29.
Last checked: 13 November 2026 (Kartik 27, 2083). Confirm your own situation with the Inland Revenue Department or a registered tax professional.