VAT Fine Calculator

VAT Fine Calculator is a tool to calculate fines (penalty) in case any businesses registered in Nepal fail to make payment of VAT and file VAT Return on either a Monthly or Four Month basis.

Nepal’s 1st Private Portal Led.

Instructions To Use VAT Fine Calculator

To use this tool, just fill the input fields in the forms respectively and click on “Calculate VAT Fine”.

Here’s the list of all the input fields and their meaning.

1. Return Period:

Select the return filing period for which you need to calculate the VAT fine. 

For eg. if you are intending to calculate vat fine for vat return of 2080 Baisakh, select ‘2080 M 1’. Similarly for 2080 Chaitra, select ‘2080 M 12’. 

The ‘M’ in the selection indicated ‘Month’ which in turn denotes monthly vat return filing.

2. VAT Payable Amount:

Enter the amount of VAT that is due for the selected return period. 

For example, if your VAT payable is 1,000,000, you should enter 1000000 in this field. 

If the VAT Payable for the return period is negative i.e. if there is no vat payable or vat credit available for the period, you should enter negative value. For eg. -100000

3. VAT Paid Date in BS:

Enter the date on which you paid the VAT in the BS Date. The format should be YYYY.MM.DD. For instance, if you paid the VAT on Baisakh 10, 2081, you should enter 2081.01.10.

4. Return File Date in BS:

Enter the date on which you filed the VAT return in the BS date. This also needs to be in the format YYYY.MM.DD. 

For example, if you filed the return on the 10th of Jestha 2080, you should enter 2080.02.10.

5. Calculate VAT Fine:

After entering all the required information, click the “Calculate VAT Fine” button. 

The calculator will then compute the additional fine and interest payable.

6. Result:

The total additional fine and interest payable will be displayed below the button, allowing you to see how much extra you need to pay due to late payment or filing. 

Please note that this is the additional fine and interest payable i.e. excluding the base vat payable amount.

Ensure all the dates are correctly entered in the BS format and double-check the VAT payable amount before calculating.

Who is this VAT Fine Calculator For?

This VAT Fine Calculator is designed for businesses in Nepal who are required to file VAT (Value Added Tax) returns. Specifically, it is useful for:

1. Business Owners

Entrepreneurs and business owners who need to calculate fines and interest due to late payment or filing of their VAT returns.

2. Accountants and Finance Professionals

Accountants managing the financial records and tax compliance for businesses. This tool helps them quickly determine any additional charges due to delays in filing VAT returns.

3. Tax Consultants

Tax advisors and consultants who assist clients with tax compliance can use this tool to calculate fines and interest, ensuring accurate and timely advice.

4. Government Officials

Tax officials or auditors might use this calculator to assess penalties for businesses that are non-compliant with VAT regulations.

5. Students

Students of taxation and business management who want to Learn and practice tax compliances.

In summary, this tool is for anyone involved in managing VAT payments and filings in Nepal, helping them avoid or ascertain penalties by providing accurate calculations of fines and interest for late filings.

Why a VAT Fine Calculator?

A person registered in VAT has to make payment of VAT and file VAT Return on monthly or Four Monthly basis depending on their case. 

In any case, the person is required to file a VAT return within 25 days after the end of the tax period. 

For instance if a person is required to file a monthly VAT return, the due date for filing of VAT return and payment of VAT of 2080 Chaitra is 25th of Baisakh, 2081.
Similarly, if a person is required to file a Four Month VAT return, the due date for filing of VAT return and payment of VAT of Shrawan-Kartik of 2080 is 25th of Mangsir, 2080. 

Prior to the introduction of this VAT Fine Calculator by Darta Nepal, users had to calculate VAT fines manually on a case-by-case basis. 

This process was challenging due to the use of the Bikram Sambat (BS) calendar, where the number of days in each month varies. Additionally, VAT fines are levied in three different sections, each requiring different calculations based on days or months, making the process even more complex.

Now, with Darta Nepal’s exclusive private portal Led Nepal’s first VAT Fine Calculator, these calculations have become much easier. 

While a similar calculation can be obtained from the Inland Revenue Department’s Audit Trail Report, it is only available after filing the VAT return. 

Therefore, Darta Nepal’s tool makes pre-estimating VAT fines straightforward and accessible, streamlining the entire process.

VAT Fine/Penalty Rate in Nepal

VAT Fine charged as per Value Added Tax Act, 2052 of Nepal can be bifurcated into below categories:

1. Penalty for Late Filing of Return

In case of failure to file VAT Return for a VAT period within the due date, one will be fined 0.05% per day or NPR 1,000 per tax period, whichever amount is higher.

2. Additional Penalty

If the Value Added Tax (VAT) is not paid within the due date, an additional 10% p.a. of the VAT amount will be charged as a penalty. [Section 19(2)]

3. Interest on Late Payment

Interest will be charged at an annual rate of 15% starting from the date the deadline is missed. The calculation of interest is done on a monthly basis. [Section 26]

Also use our other free tools: Salary Tax Calculator and OCR Fine Calculator.