Tax category: Nepal VAT 5%

Nepal VAT 5% is the reduced rate category for the two supplies the VAT Act taxes at 5%: ride sharing services and electricity. Its Tax Rules map sales and purchases to the template VAT 5% (Ride Share / Electricity) - YFF, whose single row posts to 2261 - VAT Payable - YFF on sales. Use it only for parties whose whole business with you is at 5%; for a mixed customer keep 13% and put an Item Tax Template on the 5% items. The VAT return shows 5% supplies on their own line, so a wrong category misstates the return even if the total tax looks right.

VAT = Net amount x 5 / 100; Rs 10,000 x 5 / 100 = Rs 500

1. 01Go to Selling > Customer, open the ride share or electricity customer.
2. 02Set Tax Category to Nepal VAT 5% and Save.
3. 03Open Invoicing > Sales Invoice > New for that customer; the 5% template loads.
4. 04Check the Taxes table shows 5% on the net total.
5. 05Submit. The 5% row credits VAT Payable and the Sales Book shows it as a 5% supply.

Set on customers buying those supplies.

A Rs 10,000 ride share commission carries Rs 500 VAT.