Tax template: VAT 0% (Export - Schedule 2)
Zero rated template: a VAT row at 0% so the invoice still appears in the VAT return as an export.
In detail
The zero rated template carries a VAT row with rate 0 to 2261 - VAT Payable - YFF. The row posts nothing, but its presence tags the invoice so the VAT return counts it under exports instead of ignoring it. Zero rating under Schedule 2 keeps the full right to recover input VAT on the purchases behind the export, which is why exporters often end the month with a VAT Receivable balance and a refund claim. The Nepal Export Tax Rules load this template for both sales and purchases; for the rare purchase of an export service from abroad it keeps the bill in the return. An invoice to a domestic customer must never carry it.
Formula
VAT = Net total x 0 / 100 = Rs 0; refund claim = input VAT on purchases used for the export
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Debtors - YFF (Foreign customer) | Rs 1,33,000 | |
| Rendering of Services - YFF | Rs 1,33,000 | |
| 2261 - VAT Payable - YFF | Rs 0 |
How to record it in BRAccount
- 01Go to Taxes > Sales Taxes and Charges Template and open VAT 0% (Export - Schedule 2) - YFF.
- 02Confirm one row at rate 0 to 2261 - VAT Payable - YFF.
- 03Go to Invoicing > Sales Invoice > New for a customer in the Nepal Export category.
- 04Set the foreign currency and exchange rate; the template loads with a Rs 0 row.
- 05Submit. The invoice posts in NPR at the exchange rate and appears as an export in the VAT return.
When to use it
Use for exports; input VAT on related purchases stays recoverable.
Example from the demo books
A USD 1,000 export invoice shows VAT Rs 0.