Every VAT-registered business in Nepal must issue a tax invoice (कर बीजक) when it supplies goods or services, in the format set by the VAT Rules, 2053. The invoice identifies the seller and buyer with their PAN, carries a serial number and date, and lists each item with its quantity, price, the taxable amount, 13% VAT and the total.
Use the free invoice generator to prepare a bill with VAT worked out, and check the amount in words with the amount-in-words tool.
Who has to issue a tax invoice?
Section 14 of the VAT Act, 2052 requires every registered person to issue an invoice to the buyer for each supply, except where the Rules say otherwise. The buyer, in turn, has a duty to take the invoice. A business that is not VAT-registered issues an ordinary bill under its PAN and does not charge VAT.
What must a tax invoice show?
Rule 17 of the VAT Rules and its prescribed format (Schedule 5) set out the content. A complete tax invoice shows:
| Part | What to include |
|---|---|
| Heading | The words "Tax Invoice" (कर बीजक) |
| Seller | Name, address and PAN of the VAT-registered seller |
| Invoice number | A serial number, issued in sequence without gaps |
| Date | The date of the invoice (BS; many businesses also add the AD date) |
| Buyer | Name, address and PAN of the buyer |
| Items | Description of each good or service, with type, size, model and brand where there is one |
| Quantity and price | Quantity, unit, rate and amount for each line; any discount |
| Tax | Taxable amount, VAT at 13% and the VAT amount |
| Total | Total payable, usually also in words |
| Authorisation | Signature of the person issuing it |
Since the 2081 amendment to the formats, goods are also described with at least the first four digits of their HS code, and with the model and brand as declared at customs where that applies.
A business buyer should check that its own name and PAN are correct before accepting the bill, because input VAT is claimed with the tax invoice. If you are unsure whether the buyer's PAN is mandatory for a particular sale, check the current rule with IRD.
A sample layout
To check the VAT on a total you have been given, see how to work out VAT in a VAT-inclusive price.
How many copies are needed?
A paper tax invoice is made in three copies: the original for the buyer, one kept to show the tax officer, and one for the seller's records. They support your monthly VAT return.
What about digital and computer bills?
From FY 2083/84, section 14A of the VAT Act lets the Inland Revenue Department set standards for invoices issued digitally. It can name taxpayers who must register with the Central Billing Monitoring System (CBMS) and issue invoices digitally, or use the Department's own billing system. The budget also said businesses issuing electronic invoices with annual transactions above Rs 100 million are to be linked to CBMS.
Billing software must not allow invoice data to be deleted or changed: a business using such software faces a Rs 5,00,000 fine, and Rs 1,00,000 for other breaches of the digital invoice rules. More on the year's changes is in VAT changes in Budget 2083/84.
What if you don't issue one?
Under section 29 of the VAT Act, the fine is Rs 10,000 each time a registered seller fails to issue an invoice, and Rs 1,000 each time a buyer fails to take one. Anyone transporting taxable goods worth more than Rs 10,000 outside an area the Department sets must carry the tax invoice with the goods.
Small retail sales can sometimes use a shorter bill instead — see abbreviated tax invoice vs full tax invoice.
Frequently asked questions
What is the difference between a PAN bill and a VAT bill?
A PAN bill is an ordinary invoice from a business registered only for PAN; it does not charge VAT. A VAT bill (tax invoice) comes from a VAT-registered seller, shows VAT at 13% separately, and is what a VAT-registered buyer needs to claim input VAT.
Must a tax invoice show the date in BS?
Nepal's tax system runs on the Bikram Sambat calendar, so invoices are dated in BS; many businesses print the AD date as well. The date converter helps when you need both.
Can I issue a tax invoice by hand?
Many VAT-registered businesses still write invoices from printed, serially numbered books in the prescribed format. That is not an option for a business the Department has named as one that must issue invoices digitally through CBMS. Check the current printing and numbering requirements with your tax office.
Sources
- Value Added Tax Act, 2052 — sections 14, 14A and 29; Value Added Tax Rules, 2053 — rule 17 and Schedule 5 (46th amendment, 2081). Inland Revenue Department, ird.gov.np; Nepal Law Commission, lawcommission.gov.np.
- Institute of Chartered Accountants of Nepal (ICAN), Highlights of Federal Budget of Nepal FY 2083/84.
Last checked: 13 November 2026 (Kartik 27, 2083). Confirm your own situation with the Inland Revenue Department or a registered tax professional.