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VAT and TDS in Nepal: What Your Billing Software Should Calculate for You
What Nepali retailers should expect billing software to show for VAT and TDS: taxable value, tax amount, bill numbers, and a history your accountant can file from. Not tax advice.
VAT and TDS are not a logo on the receipt. They are amounts that have to be calculated the same way on every bill, stored with a bill number, and available when the return is due.
This is an orientation for shop owners, not tax advice. Your rate, registration, and what must be reported to IRD depend on your business. Confirm that with your accountant or IRD before you copy another shop’s setup.
What a tax bill should show
A usable bill separates the value of the goods from the tax, names the seller, and keeps a number series you do not reuse. If a discount is given, it should be clear whether tax was calculated before or after that discount, and the same rule should apply every day.
TDS is a different question from VAT. It usually appears when you pay certain suppliers or service providers, not on every walk-in cash sale. Do not add a TDS line to customer bills because a neighbouring shop does.
What software is actually for
The job of the billing record is to keep every tax invoice, the items on it, and the payment type. Sajilo IMS stores the sale against products and stock. Use that history when you and your accountant prepare VAT workings. Do not assume a POS screen is an IRD approval by itself.
Ask your provider, during setup, how tax-inclusive prices and bill sequences are handled for your registration. A system that only stores a grand total forces the accountant to reverse-calculate every line.
A monthly habit that survives filing week
Pull sales and purchase totals before the return is due, and match them to the bills you actually issued and the supplier bills you actually received. Missing purchase bills are a common reason input tax cannot be claimed.
Keep one person allowed to change a tax rate or a bill number. Cashiers should sell. They should not redesign the tax setup during a rush.
Frequently asked questions
- Should every shop charge VAT?
- No. It depends on your registration and current IRD rules. Ask your accountant. Unregistered shops that print a VAT line create a different problem.
- Is TDS the same as VAT?
- No. VAT is charged on taxable supplies. TDS is tax withheld on certain payments you make. They are recorded and reported differently.
Ready to tighten inventory control?
Register for Sajilo IMS or talk to our Nepal-based team about warehouses, stock, and reporting for your business.