VAT 0%

Zero-rated supplies are listed in Schedule 2 of the VAT Act: exports of goods, services supplied to persons outside Nepal and a few others. The sale stays inside the VAT system: you issue a tax invoice, report it in the Sales Book and VAT Return, and keep the right to reclaim input VAT. The rate is simply zero, which is what makes it different from exemption, where input VAT is lost. BRAccount uses the template VAT 0% (Export - Schedule 2) - YFF and the tax categories Nepal Export Sales and Nepal Export Purchase. Keep the export evidence, such as the customs declaration or foreign payment advice; the IRD asks for it before refunding input VAT.

VAT = Taxable value x 0% = Rs 0; input VAT on related purchases remains claimable.

1. 01Go to Selling > Customer, open the foreign agency and set Tax Category to Nepal Export Sales.
2. 02Go to Invoicing > Sales Invoice > New; the export template fills by Tax Rule.
3. 03Enter the package at Rs 2,00,000; the Taxes table shows a VAT row at zero.
4. 04Submit. The entry above posts and the sale lists in the zero-rated column of the Sales Book.
5. 05Attach the export evidence to the invoice for the input VAT refund claim.

Use the VAT 0% template for export invoices; the sale still appears in the VAT return.

A trekking package sold to a foreign agency is billed at 0%.