On 7 September 2026 (22 Bhadra 2083), the IRD released a notice reinforcing the mandatory requirements for issuing tax invoices (bills) under the VAT Act and Income Tax Act. The notice specifies the minimum content of a valid invoice, including seller and buyer PAN, invoice number, date, description of goods/services, quantity, value, VAT amount, and QR code for e-invoice verification. It also clarifies the timeline for issuing invoices (at the time of supply) and retention periods.
Key Takeaways
- E-Invoice QR Code Mandatory for All B2B Transactions: Every tax invoice issued between registered persons must bear a QR code generated from the IRD’s e-invoice system, enabling real-time validation by the recipient.
- Penalties for Non-Compliance Specified: Failure to issue a proper invoice attracts a penalty of NPR 5,000 per invoice under Section 30 of the VAT Act, with possible cancellation of VAT registration for repeated violations.
- Retention Period Extended to 6 Years: Taxpayers must retain both electronic and physical copies of issued and received invoices for a minimum of six years from the end of the relevant tax year.
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