On 7 September 2026 (22 Bhadra 2083), the IRD released a targeted notice for individuals and entities conducting business through online platforms, including e-commerce marketplaces, digital service providers, and social media sellers. The notice reminds online entrepreneurs of their obligations to register for VAT, file income tax returns, issue electronic invoices, and maintain digital records. It also highlights the IRD’s enhanced data-matching capabilities using platform transaction data and bank records to identify non-compliant operators.
Key Takeaways
- Mandatory Registration Thresholds Clarified: The notice specifies that online sellers exceeding the annual turnover threshold of NPR 5 million must register for VAT, while those below must still obtain a PAN and file income tax returns.
- Electronic Invoicing Integration Required: All online businesses are directed to integrate their billing systems with the IRD’s electronic invoicing framework (e-invoice) within 60 days, ensuring real-time reporting of B2C and B2B transactions.
- Enforcement Actions Outlined: The IRD warns of penalty provisions under Section 118 of the Income Tax Act and Section 30 of the VAT Act for failure to register, file returns, or issue valid invoices, including potential platform-level restrictions.
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