An improperly formatted VAT invoice can be rejected by the IRD, disallowed as an input credit for your customer, or flagged in an audit — the format isn't optional cosmetic detail.
Required Elements Under Rule 17
- The heading "Tax Invoice" (कर बीजक)
- Supplier name, address, and PAN
- Invoice serial number and date
- Customer name, address, and PAN
- Description of goods or services, quantity, and rate
- Taxable value, VAT rate (13%), and VAT amount shown separately
- Grand total in both figures and words
- Authorized signature and company seal
Triplicate Requirement
Invoices must be issued in triplicate: original for the buyer, duplicate retained for IRD inspection, and triplicate kept in your invoice book — all records must be retained for 6 years.
Abbreviated Invoices for High-Volume Retail
Under Rule 17(Ka), retailers with high over-the-counter volume — restaurants, supermarkets, petrol pumps, pharmacies — may issue an abbreviated invoice for transactions up to NPR 10,000, with VAT shown as inclusive rather than a separate line item.
Why This Matters for Your Customers
A malformed invoice can prevent your VAT-registered customers from claiming input tax credit — a real commercial disadvantage that affects repeat business.
Company Sathi can review or set up your VAT invoice format to be fully compliant from the start.
