VAT Payable

VAT Payable is account 2261 and collects the 13 percent Value Added Tax that every sales invoice adds for the IRD. The template VAT 13% - YFF credits this ledger on each Sales Invoice; the 5 percent, zero-rated and exempt templates and the Finance Act 2083 fees point here too. At month end the VAT on purchases, held in VAT Receivable (1241), is set off against it and the net is paid to the IRD within 25 days of the Nepali month end with the अनुसूची-१० return. In the demo books Rs 8,320 was collected and Rs 4,160 remitted, leaving Rs 4,160. A credit note reverses VAT here; invoices are never deleted.

VAT due to IRD = VAT on sales (2261) - VAT on purchases (1241); balance here = VAT collected - VAT remitted

1. 01Go to Invoicing > Sales Invoice > New; the template VAT 13% - YFF adds 13 percent to account 2261.
2. 02Submit. The collection lines below post and the invoice syncs to the CBMS.
3. 03At month end, open Nepal IRD > VAT Return for the Nepali month and check sales VAT against purchase VAT.
4. 04Pay the net to the IRD through the bank within 25 days of the month end.
5. 05Post Invoicing > Journal Entry: Dr VAT Payable for sales VAT, Cr VAT Receivable for purchase VAT, Cr Bank for the net.
6. 06Submit. The remittance lines post and the ledger holds only the VAT not yet due.

Posted automatically by Sales Invoice with the VAT template. Pay the net amount to the IRD by the 25th of the next month.

Sales Invoice ACC-SINV-2026-00004: Cr VAT Payable Rs 4,160 on Rs 32,000 of sales to Jivan Dahal.