How to Bill 13% VAT Correctly in Your Nepal Workshop

Nepal's standard VAT rate is 13%, and it applies to most parts and labour a registered workshop bills. Getting it right on every invoice — and being able to hand your accountant a clean monthly summary — is one of the more tedious parts of running a garage. Here's the short version.

What gets VAT applied

Parts and labour billed by a VAT-registered workshop are subject to the 13% rate. The invoice should show the pre-VAT subtotal, the VAT amount, and the total separately — not just a single bundled figure — so both you and the customer can see exactly what was charged.

Where workshops lose time (and make mistakes)

• Calculating 13% by hand on every line item across dozens of invoices a month
• Re-adding everything at month-end to produce an IRD-ready summary
• Catching a miscalculated invoice only after the customer has already paid

What a VAT-aware invoicing system should do

The invoice should generate itself from the job card — parts and labour already itemised — with VAT calculated automatically and the total broken out clearly. At month-end, a CSV export summarising VAT collected should be ready for your accountant without anyone re-tallying anything by hand.

How MekanikMitra handles it

MekanikMitra generates invoices directly from the job card, calculates 13% VAT automatically on every line, and produces a monthly IRD VAT report as CSV — ready to hand to your accountant. Payments can be recorded as Cash, eSewa, Khalti or Bank Transfer, and the PDF carries your workshop's own branding — see the full feature list.

This isn't a substitute for professional tax advice — always confirm your specific filing obligations with your accountant or the IRD directly. But the mechanical part, getting the arithmetic right on every single invoice, is exactly the kind of task software should be doing for you. (MekanikMitra is workshop management software, not accounting software — the CSV goes to your accountant's books.)