KATHMANDU, April 20: The government has made it mandatory to issue electronic invoices for every financial transaction worth over Rs 200 million annually.
The Inland Revenue Department (IRD) tightened the screws by reducing the threshold of the system by Rs 50 million. Earlier, transactions of over Rs 250 million were subject to the electronic system.
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Except for entities such as banks/financial institutions that do not issue invoices directly to consumers/customers depending on the nature of the transaction, all taxpayers with annual turnover exceeding Rs 200 million will be required to issue invoices electronically, reads a public notice issued by the IRD. The IRD in this regard sent a circular to concerned taxpayers and tax offices to implement the rule.
According to the IRD, business firms’ entry into this system is important to control rampant tax evasion through fake VAT bills and hiding of real transaction details. The issuance of the e-billing system is directly connected to the central billing monitoring system, which helps record the transactions in the government system on a real time basis.
The government launched the central billing monitoring system in 2017. Since then, the tax authority has started connecting business firms and enterprises with computer billing software systems into its central monitoring system, bringing all selling records of the firms into the government's surveillance system.
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