Most VAT is collected by the seller at the point of sale, but the reverse charge rule moves that obligation to the buyer for particular categories of supply. Where it applies, the recipient reports the transaction as if they were both buyer and seller, accounting for VAT on the purchase and claiming it back as credit in the same return. The rule exists to catch supplies that would otherwise slip between the cracks, such as imports of certain services and transactions from suppliers who are not established in Nepal. For the buyer the practical effect is neutral in cash terms when credit is available, because the VAT charged and the credit claimed offset each other, but the reporting duty remains real and carries the usual penalties for omission. The bookkeeping consequence is that such invoices carry no VAT from the supplier yet generate a self-assessed VAT entry in the buyer's own return. Firms that treat every invoice as VAT-paid by the seller will consistently understate output when reverse charge applies. Training the team to recognise the triggers and record both legs of the entry is the difference between a clean return and a future reassessment.