How to Make an Invoice as a Freelancer in Nepal

A freelance invoice in Nepal needs a unique number, the date and due date, your name, PAN and contact details, the client's details, each item with quantity and rate, the total in figures and in words, any VAT if you are registered, and clear payment instructions. Put that on one clean page, save it as a PDF and send it. You can do all of it for free with my invoice generator, which runs in your browser and writes the amount in lakh and crore for rupee invoices.

The invoices that get paid fastest are usually the boring ones: every detail the client's accountant needs, nothing they have to email back to ask about. I built the generator around that idea. This guide covers what goes on the page, how PAN and VAT fit in, and what changes when the client is outside Nepal.

#Key takeaways

• Every invoice needs a unique, sequential number, dates, both parties' details, line items, totals and payment details.
• Your PAN on the invoice saves a round of emails with Nepali clients' accounts teams.
• Add 13% VAT only if you are VAT registered, and then follow the Inland Revenue Department's billing rules.
• Write the total in words. Nepali accounts teams expect it, and lakh and crore wording avoids confusion.
• For foreign clients, invoice in the agreed currency and include SWIFT or Payoneer details.
• Send a PDF with real text, keep a copy, and never reuse an invoice number.

#What goes on a freelance invoice

This is the checklist I use. Every item has a reason: it is either something an accountant needs to record the payment or something that prevents a "quick question" email.

1. The word "Invoice" and a number. INV-0001, INV-0002 and so on. One sequence, no gaps if you can help it, no repeats ever.
2. Issue date and due date. "Due in 15 days" is common. The date makes the payment terms concrete.
3. Your details. Name or business name, address, phone, email and PAN.
4. The client's details. Their registered business name, address and their PAN or VAT number if they are a business in Nepal.
5. Line items. A clear description of each piece of work, the quantity (hours, pages, months), the rate and the amount.
6. Totals. Subtotal, discount if any, taxable amount and tax if you charge VAT, shipping or other charges, and the total.
7. Total in words. "Nepalese Rupees One Lakh Fourteen Thousand Three Hundred Fifty-Six Only".
8. Payment details. Bank name, account name and number, branch, and for foreign clients the SWIFT code. Or your wallet ID.
9. Notes and terms. What the invoice covers, a thank you, and any late payment terms you agreed.

#PAN and VAT for freelancers in Nepal

A PAN (Permanent Account Number) is the tax ID the Inland Revenue Department issues. Most companies in Nepal will ask for your PAN before they pay you, because they record payments against it. If you do not have one yet, registering is free. Put it on every invoice under your name.

VAT is a separate registration. Nepal's standard VAT rate is 13%. Whether you must register depends on your turnover and the kind of work you do, and the thresholds have changed over the years, so check the current rules with the IRD or an accountant rather than trusting an old blog post.

What matters for your invoice:

• Not VAT registered: do not add VAT. Your invoice shows the subtotal, any discount and the total.
• VAT registered: you add 13% VAT, show the taxable amount and the VAT separately, and your VAT bills have to follow the IRD's billing rules, which control what bill books and billing software can issue VAT invoices.

My generator has a one-click "Add 13% VAT" button that sets the tax name and rate. Tax is calculated after discounts, which is how it should work. If you are VAT registered, use the generator for quotations, proforma invoices and statements, and issue the VAT bill itself from whatever system the IRD approves for you.

#Invoicing foreign clients

A lot of freelancers in Nepal work for clients in the US, Europe, Australia or the Gulf. The invoice is the same document with a few changes:

• Currency. Invoice in the currency of the contract. The generator supports US dollars, euros, pounds, Australian and Canadian dollars, UAE dirhams, Indian rupees and Japanese yen, with the right grouping for each.
• Payment details. Your bank name and branch, account name and number, and the SWIFT code. Many freelancers use Payoneer for clients who prefer it. Add whatever the client will actually use.
• Client details. Their legal company name and country. Foreign companies do not have a PAN, so leave that field empty.
• Plain language. Describe the work in terms the client's finance team will recognise: "Frontend development, October 2026, 120 hours" rather than an internal ticket number.

How that income is taxed in Nepal depends on your situation. Foreign income received by a resident is generally reportable, and the rules for exported services are not the same as for local work. I am a developer, not a tax adviser, so please check your case with the IRD or an accountant.

If you work through Upwork or Fiverr, the platform issues its own invoices to the client. You still need your own records of what you earned, and an invoice is useful when a client pays you directly outside the platform.

#Invoice numbers, dates and records

Pick one numbering format and keep it. Two common ones:

• Simple sequence: INV-0001, INV-0002, INV-0003.
• Fiscal year prefix: 2083/84-001, 2083/84-002. It restarts each Shrawan and makes it obvious which year an invoice belongs to.

In the generator, "New invoice" keeps your details, payment instructions and tax settings, clears the client and items, and increases the number by one, keeping your prefix and zero padding. INV-0009 becomes INV-0010 and 2083/84-099 becomes 2083/84-100.

Keep every invoice you send, including cancelled ones. Export the JSON file from the generator as a backup, and keep the PDFs in a folder per fiscal year. When it is time to file your income, you will thank yourself.

#Invoice, proforma invoice, quotation and receipt

The generator lets you switch the document type. The structure is the same, but the meaning is different:

• Quotation or estimate: the price you offer before work starts. Not a request for payment.
• Proforma invoice: a preliminary bill sent before delivery, often so a client can approve a budget or open a letter of credit.
• Invoice: the request for payment after the work or goods are delivered.
• Receipt: confirmation that you have been paid. Fill in "Amount already paid" to show the balance as zero.

#Make your first invoice with the free generator

1. Open the invoice generator.
2. Fill in your details once: name, address, PAN, phone, email and an optional logo. They are saved in your browser for next time.
3. Add the client, then each item with quantity, rate and any discount percentage.
4. Add VAT if you are registered, plus shipping or an amount already paid if needed.
5. Write your bank or wallet details and any terms.
6. Click Download PDF and choose "Save as PDF" in the print dialog, with margins on Default and headers and footers turned off.

The preview updates as you type, and the PDF contains real, selectable text, so the client's accounting software and email search can read it. All the maths uses whole paisa internally, so totals never end in 0.30000000004 rupees. I test the totals, the amount in words and the printed PDF automatically, including a check that the printed PDF contains only the invoice and nothing from the page around it.

Your data never leaves your browser. Drafts are stored in localStorage on your device, and export and import use plain JSON files. If you clear your browser data, the drafts go with it, so export anything you need to keep.

#Getting paid on time

A few habits that help more than any template:

• Agree the payment terms before you start, then put them on the invoice.
• Send the invoice the day the work is delivered, while the value is fresh.
• Make it easy to pay: complete bank details, the right currency, no missing fields.
• Follow up politely a day after the due date, with the invoice number in the subject line.
• For a new client, ask for part of the payment upfront with a proforma invoice.

If you are freelancing alongside a job search, my ATS-friendly CV generator and the Nepal salary tax calculator are free too.

#FAQ

#What should a freelance invoice include?

A unique invoice number, the issue date and due date, your name, address, PAN and contact details, the client's name and address, each item with quantity, rate and amount, the subtotal, any discount and tax, the total in figures and words, and how to pay.

#Do I need a PAN to invoice clients in Nepal?

Most Nepali businesses ask for your PAN before they pay you, because they record it for tax. Getting a PAN from the Inland Revenue Department is free, and having one makes your invoices look professional and your income easier to report.

#Should I add 13% VAT to my invoice?

Only if you are registered for VAT. If you are, Nepal's standard VAT rate is 13% and you must follow the Inland Revenue Department's rules for VAT bills. If you are not registered, do not add VAT.

#What currency should I use for foreign clients?

Use the currency you agreed in the contract, usually US dollars, euros or pounds. Add your bank's SWIFT code or your Payoneer details so the client can pay from abroad.

#What is the difference between an invoice, a proforma invoice and a quotation?

A quotation offers a price before work is agreed. A proforma invoice is a preliminary bill sent before delivery, often so the client can arrange payment. An invoice is the final request for payment after the work or goods are delivered.

#How should I number my invoices?

Use one simple sequence that never repeats, such as INV-0001, INV-0002. Some freelancers include the fiscal year, for example 2083/84-001. Never reuse a number, even for a cancelled invoice.

#Wrapping up

A good invoice is a checklist, not a design project: number, dates, both parties, items, totals in figures and words, tax if you are registered, and clear payment details. Get those right and clients pay faster. Make your next one with the free invoice generator, save it as a PDF and keep a copy for your records.