Restaurant VAT Billing in Nepal: Bills, Records and Software

A restaurant bill is a tax document as well as a request for payment. Customers see a total; your accountant sees VAT collected, service charge held and sales by period. This guide explains how a restaurant bill is structured, which records matter, and how to set up POS software so that the numbers agree. It covers software and record keeping, not tax advice. Rates and rules are set by the authorities and can change, so confirm them with the Inland Revenue Department or your accountant.

Anatomy of a restaurant bill

A typical bill has the following layers, in order:

1. Items and quantities, each with its price.
2. A subtotal.
3. Any approved discount, shown as its own line.
4. A service charge, if your restaurant applies one.
5. VAT, which has long been 13% on standard supplies in Nepal.
6. The grand total, and any rounding.

Whether VAT is calculated on the subtotal alone or on the subtotal plus service charge, and whether menu prices are shown including or excluding tax, is something your accountant must confirm. What matters for software is that this logic is a setting you control and that every bill follows it.

Tax-inclusive or tax-exclusive menu prices

Some restaurants print menu prices that already include tax, so the guest pays the number on the menu. Others add tax at the bottom. Both approaches can work, but the choice must be consistent with how you report sales. If your menu says "all prices include VAT", the software should back-calculate the VAT portion for reports. If prices exclude tax, the bill should add it clearly. Mixed approaches, where some items include tax and others do not, create confusion for staff and customers.

Sequential bills and the audit trail

Every bill should have a number in sequence. When a bill is cancelled or reopened, the system should keep a record of the original and the reason. Deleted bills with no trace are the first thing a reviewer will question. In a POS, voiding a bill after printing should need manager approval and should appear in a void report. This protects honest staff as much as the owner.

Buyer details on invoices

Most diners are walk-in customers who need only a simple bill. Businesses that eat with you, such as a company hosting a dinner, may need an invoice with their name and PAN so they can account for it. Check that your POS can capture buyer details when needed and print a fuller invoice layout. Ask your accountant what format is required for registered buyers.

Payments and reconciliation

The tax part is only half the picture. At the end of each day, the total of cash, card and QR receipts should match the total of settled bills. A POS makes this simple by recording the payment method on each bill and producing a closing report per cashier. When you receive QR payments, record them as QR on the bill and match the total against your bank or wallet statement. We do not claim any special arrangement with payment providers; the software simply records how the customer paid so you can reconcile.

Daily check	What to compare
Cash	Cash in drawer against the cash total on the closing report
QR or wallet	QR total against the statement for the same period
Card	Card total against the machine settlement slip
Voids and discounts	Void and discount report, reviewed by the manager
Bill numbers	Count of bills against the sequence, with no unexplained gaps

Takeaway, delivery and complimentary items

Takeaway and delivery orders should go through the same billing path as dine-in, with any packaging charge or delivery fee shown as its own line. Complimentary items, such as a birthday dessert, should be entered at zero value with a reason, rather than left off the bill. Owner and staff meals should be recorded as well, so that stock and food cost reports remain honest.

Nepali months and the fiscal year

Businesses file and review by the Nepali calendar. The fiscal year starts in Shrawan, and months follow Bikram Sambat. Make sure your POS can produce monthly sales summaries aligned to BS months, even if daily operations show AD dates. Ask for a sample monthly report with taxable sales, service charge and VAT separated, and share it with your accountant before you rely on it.

Setting up billing in a POS, step by step

1. Get written instructions from your accountant on rates, order of calculation, rounding and menu price treatment.
2. Ask the vendor to set these in the system and to run three sample bills with you.
3. Test a dine-in order, a takeaway order and a discounted order.
4. Limit who can edit tax settings and discount rules to managers.
5. Review settings every Shrawan and whenever the authorities announce a change.

If you also run a hotel

When the restaurant is part of a hotel, table bills may be settled at the table or posted to a room. Both paths need the same tax logic so that the hotel's reports reconcile. Using one system for rooms and dining makes this simpler.

WebsNP configures VAT and service charge in restaurant POS software according to the instructions you give, and links with hotel management software for room posting. We do not claim approval from any tax authority; we make billing configurable so you can follow the rules that apply to you. Send a sample of your bill on WhatsApp to +977 9846280400 and we will show how it looks on screen.

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