The Tax Office in Nepal, known as the Inland Revenue Department (IRD), now requires certain organizations and those with revenue or transactions exceeding 10 crore to issue electronic computer invoices. These invoices must be integrated with the Central Billing Monitoring System (CBMS) through approved VAT billing software.
In a recent notice, the IRD has specifically mandated companies with a revenue of more than 35 crores to integrate their computer billing invoices and credit notes with CBMS. CBMS is an IRD system that receives and stores computer-generated invoices and credit notes from approved VAT billing software. Whenever an invoice or credit note is created and saved in a computer billing system, the billing information is automatically sent to the IRD CBMS system in real time via an API.
To set up CBMS sync, if you are using an IRD-approved VAT billing system, you should already have a provision to input the CBMS URL, username, and password in the software. Different software may have different interfaces for entering user credentials. Simply enter the credentials provided into your VAT billing software and save the settings. Once configured, each time you create an invoice or credit note, the software will send the data to the CBMS server using the saved credentials. The IRD says that the username and password used for the Tax Payer’s Portal login is also usable for CBMS sync.
The IRD has prepared a document explaining how to integrate your software with CBMS, providing step-by-step instructions.
Precautions to consider:
Ensure you use reliable VAT billing software, such as “VAT Bills” powered by KTM Labs.
Confirm that your software encrypts the IRD username and password.
Double-check the accuracy of the information when creating tax invoices to avoid the need for cancellation.
Verify the invoice details with the buyer or customer before creating the invoice to prevent future disputes.
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