Compliance requirement that must be fulfilled to get approval from Tax authority in Nepal

Hi Everyone,
This thread is for those who want to know the compliance requirement for Nepal.

Nepal Tax Authority (Inland Revenue Department) has issued directive regarding the POS Module.

Following are major issues that needs to be addressed before making Erpnext to comply with Nepal’s regulation.

  • Deletion of invoices once recorded in database should not be possible however cancellation of such record can be done and report of such records should be available to view or to print.

  • If in case invoice needs to be reprinted more than one time, reprinted document should have a visible mark mentioning “copy of original” Such duplicate invoice should also clearly mention for how many times the original invoices has been printed.

  • System should record Audit trail and activity log of every users.

  • The database should be able to record the invoice number on chronological order and also to generate a report so that the details of the invoices could be viewed or printed in table or materialized view.

  • Invoice issued should be synced in real time to “Central Billing Management System” Mainlined by Tax Authority.(They provide API)

Basic Reports
Sales Register
Sn–Date–Invoice Number–Customer Name–Customer PAN–Total–Tax exempt Sales–Taxable Sales–Tax

Purchase Register
Sn–Date–Invoice Number–Supplier Name–Supplier PAN–Total–Tax Exempt Purchase–Taxable Purchase–Tax

Tax Invoice
There are normally two kinds of Invoice
1. Normal Tax Invoice
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Business who deals in retail of Small Items can issue Abbreviated Tax Invoice Where Separate Tax calculation is not required in invoice(Amount is inclusive of Tax). and such invoice cannot be issued for sales of more than NPR 5000.
Sample of Abbreviated Tax Invoice
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If any one is working for these compliance let me know :grinning:
you can contact me at rmshkc@gmail.com

1 Like

@gavagai Sure! . It will be best if we can find some programmer who can contribute to the regional requirement of Nepal. So that if we choose Nepal as a Country those feature become default standard .

@gavagai Yes I am familiar about the approval procedure . You can refer this document about all procedure. This document Contain all forms and procedure.

Follow This Link for Central Billing Monitoring System(CBMS) API Documentation for Nepal Compliance

Mark everything COPY. And if they want ORIGINAL, someone from the company, puts an SEAL (with blue ink) and says it is now original. Most banks in the west have stopped providing paper anything.

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In any case what is the use of an “original copy”? I dont have any original documents other than my PASSPORT and VISA. Even my flight ticket is a copy.

What is someone goes to a photocopy machine in a local copy store and makes 100 copies? How can anyone keep track of this? :face_with_raised_eyebrow:

@Not_a_countant They Cant keep track of photocopies. I think the intention is to prevent other business customer from claiming VAT credit and expenses multiple time from same invoice although I too have doubt about its effectiveness.
They have just Introduced Central Billing Monitoring system where all invoice issued using software system should be synced in real time but the problem is every one are not required to issue invoice using software and majority of business here use hand written invoices.

Ok, Isnt there an invoice number for that? :slight_smile:
This just tells us how much thought they put into these “compliance” requirements.

Exactly! that’s the reason virtually no other popular systems are used in Nepal. Only very few locally made system are used.