VAT Calculator
Please provide any two values from the following inputs to calculate the remaining values.
What is VAT?
VAT (value-added tax) is a type of indirect consumption tax imposed on the value added to goods or services, specifically during different stages of the supply chain, which may include production, wholesale, distribution, supply, or any other stages that add value to a product. In Nepal, the standard VAT rate is currently 13%.
VAT in Nepal
Nepal implemented VAT in 1997 to replace sales tax. The current standard VAT rate is 13%, with some goods and services qualifying for reduced rates or exemptions. Businesses with annual turnover exceeding NPR 5 million must register for VAT.
How VAT Works
VAT is collected at each stage of the supply chain, but businesses can claim credit for VAT they've paid on their inputs. This prevents double taxation and ensures only the value added at each stage is taxed.
Example of VAT Calculation
If a product costs NPR 1,000 before VAT at 13%:
- VAT amount = NPR 1,000 × 13% = NPR 130
- Total price including VAT = NPR 1,000 + NPR 130 = NPR 1,130