IRD PAN/VAT Billing for Restaurants in Nepal

What IRD, PAN, and VAT mean for Nepal restaurants

IRD is Nepal's Inland Revenue Department — the authority that oversees income tax, PAN registration, and VAT. Almost every formal restaurant needs a Permanent Account Number (PAN). If your turnover crosses the VAT threshold, you also register for Value Added Tax and must issue VAT invoices instead of plain cash memos.

A PAN bill identifies your business on the receipt. A VAT bill (tax invoice) goes further: it shows VAT on taxable items, your VAT registration details, and totals that an accountant can reconcile at month-end. Guests who claim input VAT — offices, NGOs, hotels buying catering — will ask for a VAT invoice, not a handwritten chit.

PAN bill vs VAT bill at the counter

Use a PAN bill when you are PAN-registered but not VAT-registered, or when the sale is outside VAT. Use a VAT tax invoice when you are VAT-registered and the sale is taxable. Staff should not guess — the POS should apply the right bill type from your business settings so lunch rush does not produce the wrong document.

Both bill types should still look professional: sequential bill number, date and time, item names and quantities, unit price, discounts, and a grand total in Nepali Rupees. VAT invoices add the tax rate and VAT amount so IRD records and buyer books match.

What a proper Nepal tax invoice should include

A usable restaurant tax invoice typically includes the seller's business name and address, PAN (and VAT number if registered), a unique bill number, date, itemized lines, taxable value, VAT if applicable, and the amount paid. For VAT invoices, the buyer's PAN is often required when the customer wants to claim credit.

SajhaServe POS is designed so those fields live in your restaurant profile and print on PAN bills and VAT invoices — not on a separate spreadsheet after closing. That keeps floor staff fast and your books consistent.

How SajhaServe POS helps with IRD billing

Orders from QR tables, walk-in POS, and takeaway all flow into the same billing screen. You can issue a PAN bill or VAT tax invoice in NPR, print on a thermal printer, or share a digital receipt. Itemized lines match what the kitchen prepared, which reduces disputes and missing VAT lines.

Because SajhaServe is offline-first, you can keep billing during a power or Wi-Fi drop and sync later. Sales reports stay in rupees, so your accountant is not converting foreign-currency SaaS invoices at month-end.

Hotel restaurants on Enterprise can attach food bills to the room folio and still keep tax invoices aligned with restaurant sales — one system for rooms, kitchen, and IRD-ready receipts.

Who needs VAT invoices in Nepal F&B

VAT-registered restaurants, cloud kitchens selling B2B catering, and hotel F&B outlets are the usual cases. Even smaller cafes benefit from clean PAN bills: banks, landlords, and buyers of corporate lunch often refuse informal receipts.

If you are unsure whether you should be on VAT, talk to your tax advisor or IRD. Software cannot replace registration — it only makes compliant day-to-day billing practical once you are registered.

Start IRD-ready billing with SajhaServe

Set up your menu, add your PAN and VAT details, connect a receipt printer if you want paper invoices, and start the 15-day free trial with all feature access. See the IRD billing solution for Nepal or start SajhaServe — built for Kathmandu, Pokhara, Lalitpur, and restaurants across Nepal that need fast POS and Inland Revenue-ready PAN/VAT bills in one app.