Accounting Software in Nepal: IRD Compliance & e-Billing Guide
Operating an accounting or ERP system in Nepal requires compliance with the directives of the Inland Revenue Department (IRD). Deploying uncertified software can lead to rejected financial audits, invalid tax invoices, and compliance penalties.
4 Core Legal & Technical Requirements in Nepal
Under the Electronic Billing Procedure, the software vendor must be registered with the IRD. The system must prevent invoice deletion or editing once posted, ensuring an immutable sequential audit log.
The system must generate standardized VAT Purchase Registers and VAT Sales Registers matching the IRD Annex 13 format, supporting 13% standard VAT and exempt educational heads.
Accurate tracking of statutory TDS deductions (e.g., 1.5% on contracts, 10% on rent, 15% on consultancy) with automated TDS certificate generation and periodic reconciliation against IRD portals.
Financial years in Nepal run from Shrawan 1 to Ashad end (approx. mid-July to mid-July). Ledgers and trial balances must support BS period-closing alongside standard Gregorian calendars.
Buyer Advisory
Always verify that the software vendor provides an official IRD Approval Letter and has a physical local support presence in Kathmandu or major regional hubs before finalizing deployment.