Running a Clothing Shop in Nepal: Festival Stock, VAT, Social Orders

A clothing shop in Nepal runs on a calendar. Dashain and Tihar bring the biggest rush, followed by the wedding months and Teej, with quieter periods in between. Good records help you buy the right stock for each peak, price it correctly and avoid being left with unsold pieces. This article covers local practice that affects a garment shop's records. It is about software and record keeping, not tax or legal advice.

Plan stock around the festival calendar

Begin planning for Dashain well before it arrives. Look back at the previous year in Bikram Sambat: which categories sold in the weeks before the festival, which sizes sold out, which colours stayed. A sales report by category and by week turns this memory into evidence. If you have only paper bills, you are left guessing. With a record, you can see that children's wear sold out early while formal shirts lingered, and order accordingly.

The same applies to wedding season, when ethnic wear, sarees and formal items sell, and to Teej, when red and green tones and certain fabrics are popular. Fashion is local, and your own past sales are the best guide.

Bills and VAT

If your shop is registered for VAT, bills carry VAT at 13% where applicable, with your registration number and a proper bill number. Which shops must register, what the bill must show and how often returns are filed are decided by the Inland Revenue Department, so confirm your obligations with your accountant. A billing system can print the bill format you are told to use and keep a clean sales record for your accountant at month end. It cannot decide your obligations for you.

Use Nepali dates on bills and reports. The fiscal year begins in Shrawan, so closing stock and annual totals should follow that, not the calendar year.

Orders coming from social media

Many Nepali shops get a large share of orders from Facebook, Instagram or WhatsApp. A customer sends a photo, asks for a size, and pays by QR or on delivery. Without a system, the shop may promise a piece that was sold on the counter an hour earlier. Record these orders in the same stock as the shop so the quantity is shared. A simple rule helps: nothing is confirmed on chat until the staff member checks the live stock count.

• Reserve the piece in the system when you confirm the order.
• Record the delivery area and whether it is cash on delivery or prepaid.
• Mark the order delivered or returned, so stock reflects reality.

Payments you will see

Customers pay by cash, card and QR payment through banks and wallets, and some by bank transfer for larger orders. Record the method on each bill so end-of-day totals match the cash drawer, the bank and the wallet statements. The software can be set up to record these payment types. Check with each provider about their own settlement and fees; those arrangements are between you and them.

Handling credit and regular customers

Credit is common in small towns, especially with school uniform orders, institutional purchases and local families. Keep a ledger for each credit customer with date, bill and payments, and set a reminder for follow-up. A friendly WhatsApp message on the due date is more effective than a repeated visit, and a written record avoids misunderstanding.

Dealing with power and connectivity

Power cuts and slow internet remain a reality in many areas. Counter billing should not stop for either. A local installation with scheduled backup is a sensible choice if your connection is unreliable, and a UPS at the counter protects both the computer and the data.

A simple yearly rhythm

When	What to review
After Tihar	Sales by category, unsold stock, supplier dues
Before wedding season	Stock of ethnic and formal wear, tailor capacity
Before Teej	Colours and fabrics that sold last year
Year end (Ashadh)	Stock count, ageing items, accounts for the fiscal year

School uniforms and institutional orders

Some garment shops in Nepal earn a large part of the year from school uniforms, office wear and bulk orders for organisations. These orders have a different rhythm: a large quantity, a fixed delivery date, sizes listed by name and a payment that may come in instalments or after delivery. Record each such order with its size breakdown, delivery date and payments so you do not mix it with retail stock. When the same school returns next year, you will have the size pattern and the price already recorded.

Keeping suppliers and purchase records straight

Most shops buy from wholesalers in Kathmandu, Birgunj or across the border, and payments are often made in parts. Keep a supplier ledger showing each purchase, what you paid and what is due. If you import or buy in a different currency, record the actual landed cost per piece, including transport and other charges, because that cost, not the invoice price alone, decides your real margin. Check customs and import rules with the proper authorities and your agent rather than relying on hearsay.

Next step

Pull your sales for last Dashain and see whether you can answer which category sold first and which size ran out. If you cannot, records are the first fix. See our garment and boutique software, or if you sell online as well, our guide to an ecommerce website for Nepali shops.

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