Businesses in Nepal with an annual turnover exceeding Rs 200 million will now be required to issue invoices through electronic means, according to the Inland Revenue Department.
Previously, only businesses with turnover above Rs 250 million were required to adopt the system. The department decided to lower the threshold in late Chaitra and has now begun implementing the new rule.
Under the updated provision, companies exceeding the specified turnover must compulsorily register in the Central Billing Monitoring System (CBMS). Every bill issued through this system will be automatically recorded in the government’s central server.
The department has stated that it plans to gradually reduce the threshold further in the coming years with the aim of bringing all businesses under the system. It expects the move to improve transparency and help control irregularities.
Officials believe the introduction of electronic billing will reduce tax evasion, increase revenue collection, and strengthen trust between taxpayers and the government.
The department also said it is preparing to encourage small businesses to voluntarily join the system. However, it clarified that banks and financial institutions are not currently required to be included in the CBMS framework.
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