To find the VAT inside a VAT-inclusive price in Nepal, multiply the price by 13/113 (about 0.115044). To find the price before VAT, divide by 1.13. To add VAT to a price that excludes it, multiply by 0.13 for the VAT, or by 1.13 for the total.
The free VAT calculator adds or removes 13% VAT in one step, and the invoice generator puts the result on a bill.
Why is it 13/113 and not 13%?
A VAT-inclusive price is the base price plus 13% of it — that is, 113% of the base. The VAT is 13 parts out of those 113, so:
- VAT inside the price = price × 13 ÷ 113
- Price before VAT = price ÷ 1.13 (or price × 100 ÷ 113)
Nepal's VAT practice calls 13/113 the tax fraction — the rate divided by 100 plus the rate. It is how sellers count the VAT on an abbreviated tax invoice, where only the VAT-inclusive total is shown.
The same idea works for any rate. For the 5% rate that applies to some supplies from FY 2083/84 (see VAT in Nepal), the fraction is 5/105.
How do you remove VAT from a price?
A few more:
| VAT-inclusive price | VAT (× 13/113) | Price before VAT (÷ 1.13) |
|---|---|---|
| Rs 113 | Rs 13 | Rs 100 |
| Rs 1,000 | Rs 115.04 | Rs 884.96 |
| Rs 5,650 | Rs 650 | Rs 5,000 |
| Rs 10,000 | Rs 1,150.44 | Rs 8,849.56 |
| Rs 1,13,000 | Rs 13,000 | Rs 1,00,000 |
How do you add VAT to a price?
When the price excludes VAT, the arithmetic is the familiar one:
- VAT = price × 0.13
- Total = price × 1.13
On a full tax invoice both figures are shown: the taxable amount and the VAT separately, then the total.
Common mistakes
- Taking 13% of the inclusive price. 13% of Rs 33,900 is Rs 4,407, not Rs 3,900. Applied across a month of sales, this overstates output VAT and the tax you pay.
- Subtracting 13% to find the base. Rs 33,900 − 13% is Rs 29,493, not Rs 30,000. Divide by 1.13 instead.
- Adding VAT twice. If a quoted price already says "VAT included", don't add 13% on top. Ask the supplier when it isn't clear.
- Charging VAT on exempt items. Goods and services exempt under the VAT Act carry no VAT; zero-rated exports carry 0%. Only taxable supplies use 13% (or a lower notified rate).
- Mixing inclusive and exclusive lines on one bill. Convert every line to the same basis before totalling.
How should you round VAT?
Money in Nepal is counted to the paisa (two decimal places). Two practical habits keep your figures consistent:
- Round once, at the end. Work out the VAT on the invoice's taxable total rather than rounding each line and adding the rounded figures, or the totals can drift by a few paisa.
- Make the parts add up. If you round the VAT, set the base as total − VAT so that base + VAT equals the price the customer paid.
The VAT Act does not set a rounding method in the sections cited here; if your business rounds bills to whole rupees, apply the same method every time and check any doubtful case with IRD. Small rounding differences add up across a month, so your monthly VAT return should be built from the same invoice figures your customers saw.
Frequently asked questions
How do I calculate 13% VAT from a total amount in Nepal?
Multiply the total by 13 and divide by 113. For a total of Rs 5,650, the VAT is Rs 650 and the price before VAT is Rs 5,000.
What is 13/113 as a decimal?
About 0.115044. Multiplying a VAT-inclusive price by 0.115044 gives the VAT; using the fraction 13/113 is more exact on large amounts.
How do I find the price without VAT?
Divide the VAT-inclusive price by 1.13. A price of Rs 1,13,000 including VAT is Rs 1,00,000 before VAT.
Is VAT 13% of the selling price?
Only of the price before VAT. Of a VAT-inclusive selling price, VAT is about 11.5% (13/113), which is why taking 13% of the total overstates it.
Sources
- Value Added Tax Act, 2052 — section 7 (13% rate; 5% rate for ride-sharing and electricity to end users from FY 2083/84). Inland Revenue Department, ird.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.