As Nepal accelerates its efforts toward digital governance, one crucial step for businesses is complying with the electronic billing software registration process mandated by the Inland Revenue Department (IRD). Whether you're a software developer or a business planning to use custom billing software, understanding the IRD's process is essential.

Here’s everything you need to know to get your software approved and stay tax compliant.

📌 Why Register Electronic Billing Software?

The IRD mandates the registration of electronic billing software to:

Ensure transparency in transactions.

Monitor tax compliance in real-time.

Prevent VAT fraud.

Promote a uniform billing system across the country.

🛠️ Who Needs to Register?

This applies to:

Software companies developing billing/invoicing applications.

Businesses using in-house or custom-developed billing software.

POS system providers or other invoicing tool developers.

Note: If you're using IRD-certified software (like pre-approved POS or ERP systems), you may already be compliant.

📝 Registration Process at a Glance

1. Prepare Required Documents

Before submitting, gather:

Company PAN/VAT certificate.

Application letter addressed to IRD.

Detailed documentation of the software (modules, reports, format, etc.).

Sample invoice format (printed and digital).

Screenshot or video demonstration of the billing process.

Source code or access credentials (if requested).

2. Submit Application to IRD

You need to submit a formal request letter to the IRD Department of Revenue Administration.

Include a cover letter describing the company and the nature of the software.

1)      Log on to www.ird.gov.np

2)      Go to Taxpayer Portal

3)      Go to Electronic Billing

4)      Electronic Billing Software Listing

5)      Register: Enter the Username, Password, and other required information and Click on the Registration / Proceed

6)      Click on Submit

3. Evaluation by Technical Team

Once submitted, the IRD will:

Examine the software features, including tax calculation, VAT compliance, invoice structure, and data integrity.

Test the software to confirm real-time billing and reporting functionalities.

Request clarifications or changes if any issues are found.

4. Integration with IRD System (Optional)

For advanced systems, the IRD may request:

Integration with its reporting systems (e.g., for real-time invoice uploads).

API support for daily transaction reports.

5. Approval and Certification

Upon successful testing and evaluation, IRD will issue an approval certificate.

Your software will be listed among authorized billing tools.

✅ Key Compliance Features Required

Ensure your billing software includes:

Unique invoice numbering.

PAN/VAT display of buyer and seller.

Tax calculation breakdown.

Report generation (daily, monthly, yearly).

Backup and data security features.

🔄 What If You Modify Your Software?

If you make substantial updates or changes to the billing logic, UI, or tax calculation:

You must re-submit the updated version for re-evaluation.

🚫 Penalty for Non-Compliance

Businesses found using non-registered or non-compliant billing software may face:

Fines

Seizure of equipment

Temporary closure

Legal action under the Revenue Leakage Control Act

📍 Where to Submit?

Submit your application to:

Department of Inland Revenue
Lazimpat, Kathmandu, Nepal
https://ird.gov.np

💬 Final Thoughts

Registering your billing software with IRD not only ensures legal compliance but also boosts your credibility as a transparent and law-abiding business. As the government pushes for digital transformation, aligning with these processes is essential for staying ahead.

If you’re developing or using custom billing software, start your registration process now to avoid future roadblocks.