On 15 October 2026, the Inland Revenue Department published a critical operational notice mandating specific invoice entry protocols within the Taxpayer Incentive Gift Program system. This directive, issued under the Economic Act 2083, requires all registered taxpayers participating in the incentive scheme to accurately record sales invoices in the designated digital portal within prescribed timelines. The measure aims to enhance VAT compliance transparency, reduce fraudulent claims, and create an auditable digital trail for incentive verification. Non-compliance attracts penalties under Section 29 of the Value Added Tax Act 2052, including potential disqualification from the incentive program. The notice specifies technical formats, mandatory data fields (PAN, invoice number, date, taxable amount, VAT), and integration requirements with the taxpayer’s accounting software.
Key Takeaways
- Mandatory Real-Time Invoice Reporting: Taxpayers must upload B2B and B2C invoice data within 24 hours of issuance, enabling IRD to cross-verify input tax credits and incentive eligibility automatically.
- Standardized Data Schema and API Integration: The notice prescribes a uniform JSON/XML schema for invoice submission, requiring ERP/POS system upgrades for seamless API-based transmission to the IRD gateway.
- Phased Enforcement with Penalty Regime: A 60-day grace period is provided for system adaptation, after which daily fines of NPR 5,000 apply for late entries, with program suspension after three consecutive violations.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement