How does VAT filing work in Nepal — monthly or quarterly?

VAT filing in Nepal is done monthly for most registered businesses. The VAT return (Form VAT 10) must be filed by the 25th of the following Nepali month (approx. mid-calendar month). Businesses with annual turnover below a threshold may qualify for quarterly filing. The return records output VAT collected from sales and input VAT paid on purchases, with the difference either payable to IRD or carried forward as a credit. Late filing attracts interest and fines under the VAT Act.

What is TDS in Nepal and when does it apply?

TDS (Tax Deducted at Source) is a withholding tax under Nepal's Income Tax Act 2058. It applies when a registered business makes certain payments: salary and wages (at applicable slab rates), rent (10%), service fees to resident contractors (1.5–15% depending on the type), interest, dividends, and more. The deducted amount must be deposited with IRD by the 25th of the following Nepali month, and a TDS certificate (Form 7 or 12) issued to the recipient. Failure to deduct and deposit TDS makes the paying business liable for the full tax.

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Nepal Business Accounting Services
VAT, TDS, payroll — handled.

VAT filings due every Nepali month. TDS obligations on every applicable payment. SSF payroll each pay cycle. IRD audits with no warning. Nepal's compliance requirements are real and recurring — I handle the accounting so they stay on time and accurate.

$100

Starting /month

Years experience

24hr

Response time

WhatsApp me Get a Free Quote See Pricing

Nepal VAT & TDS IRD Compliance SSF Payroll No contracts

What you get every month

✓ VAT return filed on time every month
✓ TDS deducted, deposited & documented
✓ SSF payroll processed for all employees
✓ Nepal income tax compliance maintained
✓ IRD-ready records kept current
✓ Nepal-standard chart of accounts

Starting from $100/month

First consultation is free. No obligation.

Full scope

What Nepal business accounting includes

Nepal's tax and compliance obligations run on a monthly cycle. Here is exactly what I handle to keep your business on the right side of IRD.

VAT Registration & Monthly Filing

VAT return (Form VAT 10) prepared and filed by the 25th of each Nepali month. Input VAT reconciled to purchase invoices, output VAT confirmed against sales records, and any payable amount calculated clearly.

TDS Deduction & IRD Deposit

TDS calculated and deducted on all applicable payments — salaries, rent, service fees, interest — deposited with IRD by the 25th, and TDS certificates issued to recipients each quarter.

Nepal Income Tax Compliance

Annual income tax return preparation under the Income Tax Act 2058, advance tax instalment tracking, and tax computation aligned with your financial statements — so the filed return and your books agree.

SSF Payroll Processing

Monthly payroll processed with Social Security Fund (SSF) contributions calculated at the correct rates for employer and employee. Payroll register maintained and salary TDS deducted per the applicable slab.

IRD Audit Preparation & Support

Pre-audit review of VAT returns, TDS registers, income declarations, and bank reconciliations. Gaps identified and documentation organised before the audit begins — so there are no surprises during the IRD review.

Nepal-Standard Chart of Accounts

Books set up with an account structure that aligns with Nepal's income tax and VAT return requirements — so the numbers flow correctly from your ledger to your filed returns without manual adjustment.

Using ERPNext or another local accounting system? ERPNext support is available →

Remote process

How Nepal business accounting works remotely

The entire process runs through cloud accounting software. No paper, no mailing documents, no in-person meetings required — even for IRD compliance.

Connect your software

Grant me accountant-level access to your QuickBooks Online or Xero account. If you're not set up yet, I can help configure a Nepal-standard chart of accounts with the correct VAT and TDS categories built in from the start. No passwords shared — access is through the platform's own permission system.

I handle the books

Every month I categorize your transactions, reconcile every account, update your receivables and payables, and check for errors. For Nepal businesses, this includes preparing the VAT return and TDS deposit workings so deadlines are met without last-minute scrambles.

You get your summary

I send you a brief monthly summary via WhatsApp or email — what the key numbers show, compliance deadlines met, and anything that needs your attention. You get a link to your updated reports in QuickBooks or Xero.

Foreign company with Nepal operations? Whether you have a registered subsidiary, liaison office, or project office in Nepal, the same VAT, TDS, and SSF obligations apply. I work with both Nepal-owned and foreign-owned businesses registered in Nepal.

Want to see the exact steps? Read the full 4-step onboarding walkthrough →

Best fit

Nepal businesses that work best with this service

These are the most common situations where a Nepal business needs dedicated accounting support — not just year-end tax filing.

Nepal-registered SME

A registered company or partnership operating in Nepal with recurring VAT, TDS, and income tax obligations to manage every month.

Foreign company with Nepal operations

Companies registered abroad but operating in Nepal — with a subsidiary, project office, or liaison office — face the same local compliance requirements as Nepal-owned businesses.

Business receiving VAT invoices

If your suppliers issue VAT invoices and you claim input VAT credits, those claims need to be reconciled correctly each month — or the credits are disallowed at audit.

IRD audit or compliance review ahead

A notice from IRD requiring a tax audit or compliance review is best handled with clean, consistent records already in place — not assembled in the weeks before the review date.

Team of 2–50 employees

SSF contributions, salary TDS, and payroll records for a team of any size create monthly accounting tasks that are too important to do inconsistently.

Why not just use a local CA firm?

Nepal accountant vs. CA firm

CA firms are essential for audits and statutory filings. But what happens between filings — the daily and monthly accounting work — is often not included in their mandate.

	Working with me	Local CA firm
Monthly bookkeeping	Included — every month	Often not included
VAT & TDS filing	Yes — monthly	Yes — often year-end focus
SSF payroll processing	Yes	Varies — sometimes extra
Direct contact	WhatsApp or email, direct	Junior staff or reception
Audit support	Pre-audit review included	Yes — core service
Statutory audit sign-off	Refer to a CA — I coordinate	Yes — requires CA licence

Use both — they serve different roles. A CA firm handles your statutory audit and formal filings that require a licenced auditor. I handle the monthly accounting work between those filings — so when your CA needs the books, they are clean, current, and exactly what the audit requires.

Credentials

Nepal-based, certified, reachable

Years in accounting & finance

🇳🇵

Based in Kathmandu, Nepal

QBO

QuickBooks Online ProAdvisor Certified

IRD

Nepal VAT, TDS & income tax compliance

See full case studies → · About me →

Transparent pricing

Nepal accounting service pricing

A small Nepal-registered business with standard VAT and payroll obligations typically falls in the starter tier. The rate scales with transaction volume, number of employees, and whether IRD audit support is included. No hidden fees, no annual contracts.

Monthly Accounting

$100/month

Starting price for a Nepal-registered business with standard VAT, TDS, and payroll obligations.

✓ Monthly bookkeeping
✓ VAT return filing
✓ TDS deduction & deposit
✓ SSF payroll
✓ WhatsApp & email support

Get a Quote

Cleanup + Ongoing

Custom

If your Nepal business has months of unfiled VAT, unrecorded TDS, or messy books, we start with a cleanup then move to monthly compliance.

✓ Historical books cleaned up
✓ VAT backlog reconciled
✓ TDS records restored
✓ Transition to monthly support

Discuss Your Situation

Final pricing depends on transaction volume, employee count, and compliance scope. See full pricing breakdown →

Common questions

Nepal business accounting FAQ

Nepal-registered businesses must maintain books of accounts under the Income Tax Act 2058 and VAT Act 2052. This includes a cash book, sales and purchase registers, bank reconciliation records, payroll registers, and annual financial statements. VAT-registered businesses must also keep VAT purchase and sales books updated monthly. All records must be retained for at least 7 years and be available for IRD inspection on request.

VAT filing in Nepal is done monthly for most registered businesses. The VAT return (Form VAT 10) must be filed by the 25th of the following Nepali month. The return records output VAT collected from sales and input VAT paid on purchases, with the difference either payable to IRD or carried forward as a credit. Late filing attracts interest and fines under the VAT Act. Businesses below the registration threshold may qualify for quarterly filing.

TDS (Tax Deducted at Source) is a withholding tax under Nepal's Income Tax Act 2058. It applies when a registered business makes certain payments: salary and wages (at slab rates), rent (10%), service fees to resident contractors (1.5–15% depending on the type), interest, and dividends. The deducted amount must be deposited with IRD by the 25th of the following Nepali month, and a TDS certificate issued to the recipient. Failure to deduct and deposit TDS makes the paying business liable for the full tax amount.

Nepal SME accounting starts from $100/month (approximately NPR 13,000+ at current rates), covering monthly bookkeeping, VAT filing, TDS reconciliation, and financial reporting. The rate scales with transaction volume, number of employees, and whether IRD audit support is included. The first conversation is free — you get a clear quote before committing.

IRD audit preparation involves reviewing and reconciling your financial statements, VAT returns, TDS registers, and salary records against your bank statements and supporting documentation. Common areas of scrutiny include: input VAT claims without proper purchase invoices, TDS not deducted on applicable payments, undeclared income, and discrepancies between filed returns and audited accounts. I review each of these areas, identify gaps, and help you organise documentation before the audit begins.