How to calculate VAT
Adding VAT to a price
Multiply the price by the rate: VAT = price × 13 ÷ 100, then add it. A product priced at 2,500 has VAT of 325 and a total of 2,825.
Removing VAT from a total
Divide by one plus the rate: price = total ÷ 1.13. A bill of 2,825 contains a price of 2,500 and VAT of 325. This is useful for checking restaurant and shop bills, or when a supplier quotes a VAT-inclusive figure and you need the base price.
13% VAT quick reference
The left side adds 13% VAT to a price. The right side treats the same number as a VAT-inclusive total and splits out the VAT.
| Amount | + VAT | Total | VAT inside total | Price before VAT |
|---|---|---|---|---|
| 100 | 13.00 | 113.00 | 11.50 | 88.50 |
| 500 | 65.00 | 565.00 | 57.52 | 442.48 |
| 1,000 | 130.00 | 1,130.00 | 115.04 | 884.96 |
| 2,500 | 325.00 | 2,825.00 | 287.61 | 2,212.39 |
| 5,000 | 650.00 | 5,650.00 | 575.22 | 4,424.78 |
| 10,000 | 1,300.00 | 11,300.00 | 1,150.44 | 8,849.56 |
| 50,000 | 6,500.00 | 56,500.00 | 5,752.21 | 44,247.79 |
| 1,00,000 | 13,000.00 | 1,13,000.00 | 11,504.42 | 88,495.58 |
VAT-inclusive and VAT-exclusive prices
A VAT-exclusive price is the amount before tax, and VAT is added at the till or on the invoice. A VAT-inclusive price already contains the tax. Shops that show a single shelf price usually include VAT, while business quotations and wholesale price lists are often exclusive. When a quote doesn't say which one it is, ask, because the difference on a large order is significant.
Tips for invoices
- Show the taxable amount, the VAT and the total as separate lines.
- Round VAT to two decimal places on each invoice, not on each item, to avoid small mismatches.
- Write the final total in words with our number to words converter.
Tax rules change and some items are exempt. This calculator does the arithmetic only and is not tax advice.
Questions people ask
What is the VAT rate in Nepal?
The standard VAT rate in Nepal is 13%. Some goods and services are zero-rated or exempt. Check with the Inland Revenue Department or your tax adviser for a specific item.
How do I remove 13% VAT from a total?
Divide the VAT-inclusive amount by 1.13 to get the price before VAT. The VAT is the difference. For example, 1,130 ÷ 1.13 = 1,000, so the VAT is 130.
Why not just subtract 13% from the total?
Because the 13% was added to the original price, not to the total. Subtracting 13% of 1,130 gives 983.10, which is wrong. Dividing by 1.13 gives the correct 1,000.
Can I use this for GST or sales tax?
Yes. Pick a preset or type any rate, such as 5%, 12%, 18% or 28% for Indian GST, or 20% for UK VAT. The maths is the same.
Updated · 26 Kartik 2083 BS