Tax template: Nepal Luxury Fee
Adds the 2% luxury fee on luxury goods and services, such as high end hotel stays and jewellery. In the demo it posts to VAT Payable - YFF.
In detail
The Nepal Luxury Fee template adds the 2% luxury fee (विलासिता शुल्क) that Finance Act 2083 levies on luxury goods and services, such as five star hotel stays, imported liquor and jewellery above the threshold. It has one row at 2% on the net total; in the demo that row posts to 2261 - VAT Payable - YFF, so the fee and VAT share one liability account and the IRD return separates them by template. The fee is charged on top of VAT, and since an invoice carries one template, build a combined template with a 13% row and a 2% row for luxury sales. Charging the fee on ordinary goods overcharges the customer.
Formula
Luxury fee = Net total x 2 / 100; Rs 50,000 x 2 / 100 = Rs 1,000
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Debtors - YFF (Customer) | Rs 57,500 | |
| Rendering of Services - YFF | Rs 50,000 | |
| 2261 - VAT Payable - YFF (VAT 13%) | Rs 6,500 | |
| 2261 - VAT Payable - YFF (Luxury fee 2%) | Rs 1,000 |
How to record it in BRAccount
- 01Go to Taxes > Sales Taxes and Charges Template and open Nepal Luxury Fee - YFF.
- 02Confirm the row: 2% On Net Total to 2261 - VAT Payable - YFF.
- 03For luxury sales, duplicate it and add the 13% VAT row so one template carries both.
- 04Go to Invoicing > Sales Invoice > New, enter the luxury package and pick that template.
- 05Submit. VAT and the fee both credit VAT Payable; the printed invoice shows each line.
When to use it
Pick it on sales of items the Finance Act lists as luxury.
Example from the demo books
A Rs 50,000 luxury hotel package adds a 2% luxury fee of Rs 1,000.