A Monthly VAT Reconciliation Checklist for Nepal Businesses

Sales control

Reconcile invoice sequence, taxable sales, exempt and zero-rated sales, output VAT, credit notes and ledger revenue. Explain cancelled or missing invoice numbers.

Purchase and credit control

Match claimed input VAT to valid supplier invoices, receipt evidence, taxable use and supplier status. Remove duplicates, private costs and restricted credits.

Imports and inventory

Tie customs declarations and import VAT to stock receipt and landed-cost records. Review inventory movement, branch transfers, shortages and disposals for VAT consequences.

Return pack

Keep the return, payment proof, reconciliations, exception list, approvals and source notes together. Carry unresolved items transparently rather than burying them in suspense accounts.

A practical control to retain

The reviewer should sign an exception list, not only the return total. Each unresolved item needs amount, period, owner, action and expected resolution date. Protect source files from later alteration and keep exported ledger reports used in the calculation. Compare the next month’s opening balances with the previous signed pack. This turns reconciliation into a continuous control rather than a spreadsheet recreated differently each month.

For accountants, controllers and business owners, the sign-off should answer the guide's four core questions in writing: Reconcile before filing, not during audit. Use control totals across systems. Investigate rather than force differences. Keep a signed period file. Record who checked those answers, the source date and any unresolved fact. If a later invoice, contract or Schedule amendment changes one answer, reopen the classification or return treatment instead of silently carrying the old assumption forward.