As Nepal moves toward digital governance and increased transparency in taxation, the implementation of E-Billing (Electronic Billing) has become a crucial requirement for businesses. The Inland Revenue Department (IRD) has made E-Billing mandatory for certain VAT-registered businesses to streamline the monitoring of sales transactions in real-time.
This guide will help you understand what E-Billing is, how to implement it, and why it’s important for compliance and efficiency in Nepal.
Introduction to E-Billing in Nepal
What Is E-Billing?
E-Billing refers to the generation and submission of electronic invoices using IRD approved billing software. It replaces traditional paper invoices and enables real-time recording of sales to the tax system.
Evolution of Billing Systems in Nepal
Nepal’s tax administration has steadily evolved from manual record-keeping to computerized billing and now to real-time digital billing. E-Billing is part of this transformation to ensure greater transparency and reduce tax evasion.
Why E-Billing Matters Today
With the growing emphasis on a digital economy and tax compliance, E-Billing is not just a legal requirement but it’s a smart business practice that helps businesses stay competitive and compliant.
Legal Provisions and Government Guidelines
A Mandatory Requirement for E-Billing in Nepal
In Nepal, businesses are legally required to obtain approval from the Inland Revenue Department (IRD) before they can issue invoices through any E-Billing software.
VAT and PAN Compliance in E-Billing
E-Bills must include critical details such as PAN numbers, VAT amounts, invoice numbers, and buyer details. This helps the government monitor transactions more accurately.
Mandatory Use for Certain Businesses
· Businesses with annual transactions exceeding NPR 10 crore are obligated to use IRD-approved E-Billing systems.
· For sectors like hotels, restaurants, and canteens, the threshold is reduced to NPR 5 crore, making early compliance essential for hospitality-related businesses.
How to Implement E-Billing in Your Businesses?
Step-by-Step Guide to Getting IRD Approval for E-Billing in Nepal
Implementing an IRD-approved E-Billing system is essential for businesses in Nepal aiming to maintain compliance with VAT and digital invoicing requirements. Here's a simplified process to help you get started:
Choose an IRD-Approved E-Billing Software
Start by selecting E-Billing software that meets the Inland Revenue Department (IRD) standards.
Make sure the software includes features such as VAT compliance, transaction tracking, invoice generation, and seamless integration with IRD systems like CBMS.
Configure and Test the System
Set up the software according to IRD’s technical and legal guidelines.
Run internal tests to confirm everything works smoothly before applying for official approval.
Collect Required Documentation
Prepare and compile the following documents for submission:
· Business Registration Certificate
· PAN/VAT Registration Certificate
· Most recent Tax Clearance Certificate
· Invoice of the software purchase
· Contract or agreement with the software provider
· Software user manual
· Cloud hosting agreement (for cloud-based software)
· Sample invoices and tax reports generated by the system
Submit Application to IRD
Submit the application form along with the above documents to the IRD office.
Ensure that all data and documents are accurate, complete, and up to date.
Software Evaluation by IRD
The IRD will inspect your chosen E-Billing software to ensure it meets their integration and data security standards.
The software must be capable of sending real-time transaction data to IRD's Central Billing Monitoring System (CBMS).
Receive Approval and Certification
After successful evaluation and testing, IRD will issue an official approval certificate.
This certificate authorizes your business to legally issue invoices through the approved E-Billing system.
Maintain Ongoing Compliance
Continue to use the approved E-Billing system for all business transactions.
Ensure that your software stays updated and consistently follows IRD's reporting and compliance requirements.
Approved E-Billing Software Providers in Nepal
Some popular IRD-approved software providers include:
- TIGG
- SWASTIK E-Billing
- TMS Billing System
- BillingNepal
- BILLBOOK Online
Ensure the software you choose is regularly updated and approved by the IRD.
Hardware and Internet Requirements
To use E-Billing, your business must have:
- A reliable computer or POS system
- Internet connectivity
- A compatible printer (if printing physical copies)
Benefits of Using E-Billing System
Improved Tax Compliance
E-Billing automates tax recording and reduces human errors, helping businesses remain compliant with minimal effort.
Real-Time Transaction Tracking
The IRD receives billing data instantly, making it easier to verify tax submissions and detect fraud.
Cost and Time Efficiency for Businesses
Digital invoicing saves time on manual paperwork and streamlines accounting, inventory, and tax reporting processes.
Common Challenges and Solutions
Technical Barriers for Small Businesses
Many small businesses lack digital literacy or access to infrastructure. Training programs and low-cost software solutions can help bridge this gap.
Lack of Awareness or Training
The IRD and software vendors offer online resources, manuals, and workshops to educate businesses about E-Billing implementation.
Support from IRD and Software Providers
The IRD provides a support desk and online tutorials, while vendors offer setup and after-sales service to ensure smooth operations.
Integration of E-Billing with Other Systems
Syncing with Accounting Software
Many E-Billing platforms can be integrated with accounting systems to simplify bookkeeping and reporting.
Real-Time Data Sharing with IRD
Approved software automatically sends transaction details to the IRD’s central server, ensuring compliance.
Linking POS and Inventory Management
E-Billing can be linked with POS and inventory software to give businesses full control over their sales and stock.
Future of E-Billing in Nepal
Government's Digital Taxation Roadmap
The Government of Nepal aims to make all VAT-registered businesses adopt E-Billing over the coming years as part of its Digital Nepal Framework.
Plans for Nationwide Adoption
The IRD plans to expand the mandate gradually to cover small and medium enterprises (SMEs) and rural businesses.
Impact on Business Transparency
E-Billing promotes transparency, reduces corruption, and enhances trust between businesses and customers.
Resources and Support
List of IRD-Approved E-Billing Software
You can view the official list on the IRD website:
👉 https://ird.gov.np
Helpdesk and Training Services
The IRD provides assistance via hotline numbers and online forms. Many software companies also offer on-site and remote training.
Contact Information for Technical Assistance
- IRD Helpdesk: 1660-01-33333 (Toll-Free)
- Email: info@ird.gov.np
Bottom Line
E-Billing is more than just a digital tool, it’s a necessary step toward business modernization, tax transparency, and efficiency in Nepal. Whether you're a large corporation or a small retailer, adopting an E-Billing system will not only ensure compliance but also offer operational advantages in the long run.