Free Invoice Generator (Nepal)

Only a VAT-registered business may show VAT on an invoice. Section 15 of the VAT Act 2052 bars an unregistered person from issuing an invoice or document that shows collected VAT, and the tax collected is recovered from that person. A taxable consignment worth more than Rs 10,000 that is moved outside the area set by the Department must travel with the tax invoice (section 14(4)).

A business that wants to bill from software applies at its tax office, which approves the system without charge. The papers listed in the Electronic Invoice Procedure 2082 are the application under Schedule 3, proof of buying the software from an IRD-approved vendor with the contract and specification, sample invoices, the registration certificate, the PAN certificate and a tax clearance certificate. Software that allows data to be deleted or edited is prohibited and is penalised under both the VAT Act and the Income Tax Act. Approved businesses may be ordered by IRD notice to link the billing system to the Central Billing Monitoring System (CBMS). Receipts from invoices go to a business account. Section 81Ka of the Income Tax Act does not allow business receipts, whether cash, cheque or QR payment, to be deposited in a personal bank account.