Complete IRD Compliance & VAT/PAN Billing Guide for Restaurants in Nepal

Understanding IRD Billing Rules in Nepal

Running a restaurant in Nepal requires strict compliance with the Inland Revenue Department (IRD) regulations. Whether you operate a single café or a multi-branch restaurant chain, staying compliant with fiscal billing is essential to avoid penalties and simplify annual tax filings.

Key Fiscal Billing Requirements

1. Mandatory Seller PAN / VAT Display
   Every fiscal tax invoice must clearly display your restaurant’s registered Business PAN or VAT number, legal name, and physical branch address.

2. Sequential Abbreviated Invoice Numbering
   Invoices must follow a continuous, sequential numbering format scoped per fiscal year (e.g., INV-2081/82-00491). Gaps or reset numbers within an active fiscal year are strictly flagged during IRD audits.

3. Tax & Service Charge Breakdown
   Tax invoices must explicitly itemize:

   • Subtotal (Gross Sales before Tax)
   • 10% Service Charge (if applicable)
   • 13% Value Added Tax (VAT) (calculated on Subtotal + Service Charge)
   • Grand Total

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Split Payment Settlement & Modern Wallets

With the rapid adoption of digital payments in Nepal, guests frequently ask to split bills using eSewa, Fonepay QR, Khalti, or cash.

Your POS system must log the exact breakdown of settlement methods per invoice so that daily cash reconciliation matches your bank deposits and IRD financial reports.

Example Split Invoice Breakdown:
- Order Total: NPR 2,450
- eSewa QR Settlement: NPR 1,500
- Cash Settlement: NPR 950

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How Sajilo Restaurant Handles IRD Compliance

Sajilo Restaurant includes built-in IRD tax rules out of the box:

• Instant Fiscal Year Scoping: Automatically transitions tax batches every Ashad.
• Audit Logs: Records every voided bill or discount with manager credentials.
• Exportable Reports: Generate IRD-ready Excel, CSV, and PDF audit logs in seconds.