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Nepal Tax Information

13% VAT

VAT is 13%. Registration required above NPR 5 million annual turnover.

Contractor Services to Invoice

  • Labor charges
  • Material costs
  • Equipment rental
  • Permit fees
  • Subcontractor work
  • Change orders
  • Warranty work

Invoice Requirements in Nepal

PAN number
VAT registration
Client details
VAT (13%)
Total in NPR

Payment Terms

Progress billing at milestones. Retain 5-10% until final inspection.

नगद15 दिन30 दिनउधारो

Payment Methods in Nepal

Bank TransfereSewaKhaltiIME PayCash

Contractor Invoice Tips

  • Break down materials and labor
  • Reference permits
  • Document change orders
  • Include lien waiver language
  • Track progress payments

Frequently Asked Questions

What tax rate applies to contractor invoices in Nepal?

Nepal has 13% VAT. VAT is 13%. Registration required above NPR 5 million annual turnover.

What payment methods are common for contractors in Nepal?

Common payment methods in Nepal include: Bank Transfer, eSewa, Khalti, IME Pay, Cash. Progress billing at milestones. Retain 5-10% until final inspection.

What should contractor invoices include in Nepal?

Your invoice should include: PAN number, VAT registration, Client details, VAT (13%). For contractor services specifically, also include: Labor charges, Material costs, Equipment rental.

How should contractors bill for projects?

Progress invoicing at milestones. Break down labor, materials, and subcontractor costs.

How do contractors handle material markup?

15-25% markup is standard. State policy in contracts.

What is Nepal's VAT rate?

13% on most goods and services.