Accounting & Audit for Hotels and Tourism Businesses
The hospitality compliance picture
Accommodation and food services attract 13% VAT, and the 10% service charge collected from guests is governed by its own distribution rules between staff and management. Tourism businesses additionally register with the Nepal Tourism Board and the Department of Tourism depending on category — hotels, travel agencies, and trekking operators each have their own licensing.
Foreign guests mean foreign currency: receipts must flow through proper banking channels, and the accounting must support both the exchange records and any repatriation or investment reporting that applies. Seasonality complicates payroll and cash-flow planning on top.
What we handle for hospitality clients
- Monthly accounting with room revenue, F&B, and service charge streams kept distinct
- VAT returns and reconciliation across booking platforms, walk-ins, and agents
- Service charge distribution accounting under the applicable rules
- Statutory audits for hotels, resorts, travel agencies, and trekking companies
- Tourism licensing and renewals — NTB, Department of Tourism, and municipal registrations
- Payroll and SSF for seasonal and permanent staff
- Feasibility studies and bank documentation for new hotel projects
Positioned in Nepal's next tourism hub
The Lumbini corridor — anchored by the birthplace of the Buddha and served by Gautam Buddha International Airport — is one of Nepal's fastest-developing tourism regions, with new hotels and services opening across Rupandehi. We serve this corridor from within it: site visits to Lumbini or Bhairahawa are a morning's drive, not an expedition.
Frequently asked questions
How is the 10% service charge treated in accounts?
Service charge collected from guests is not ordinary revenue — it's distributed between employees and management under the prevailing rules, and the accounting must track collection, distribution, and the tax treatment of each share. We set up the ledgers so the split is clean and defensible.
Do small guesthouses need VAT registration?
Accommodation services fall among the sectors where VAT registration applies at lower thresholds than the general rule, so most established guesthouses should register. We assess your position and handle the registration and monthly filings if required.
Can you prepare feasibility studies for a new hotel?
Yes — projected occupancy, revenue, and financials in the format banks require for hotel project financing, grounded in corridor-level data rather than optimism. See our business advisory service for how these engagements run.
Services this industry relies on
Accounting & Bookkeeping
Monthly bookkeeping, ledgers, and financial statements kept clean and current, so your audit and tax filings are never a scramble.
Learn moreCA Consultant & Business Advisory
Practical guidance from experienced professionals on structure, compliance, and growth — a CA consultant near you that you can actually reach.
Learn moreStatutory Audit
Annual audit report for your Pvt. Ltd. or Public Ltd. company by experienced auditors — accurate, independent, and accepted by OCR and IRD.
Learn moreAudit due? Registering a company? Let’s sort it this week.