Tax template: VAT 5% (Ride Share / Electricity)

This template applies the 5% reduced VAT rate that the Finance Act gives to ride sharing services and to electricity. It has one row, 5% on the net total to 2261 - VAT Payable - YFF, and is loaded by the Nepal VAT 5% Tax Rules or picked by hand on the invoice. The amount lands in the same VAT Payable account as the 13% tax, so the VAT return separates the two by template, not by account. Charging 5% on an ordinary 13% supply is an under declaration the IRD recovers with interest. A business that resells electricity alongside 13% services should attach it through an Item Tax Template instead.

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

1. 01Go to Taxes > Sales Taxes and Charges Template and open VAT 5% (Ride Share / Electricity) - YFF.
2. 02Confirm the row posts 5% On Net Total to 2261 - VAT Payable - YFF.
3. 03Go to Invoicing > Sales Invoice > New and pick this template under Taxes if the rule did not.
4. 04Enter the ride share commission or electricity line.
5. 05Submit. The 5% row credits VAT Payable and the return lists it as a 5% supply.

Pick it on invoices for those supplies only.

Rs 10,000 of electricity resale carries Rs 500 VAT.