Complete Guide to Nepal IRD Bill Format & HS Code Requirements 2025

For every Nepali business, creating IRD-compliant invoices is not just good practice—it's a legal requirement. With updated VAT regulations and specific format requirements, understanding the proper Nepal IRD bill format is essential for tax compliance. This comprehensive guide covers everything from HS codes to mandatory fields you need to include on your invoices in 2025.

What is Nepal IRD Bill Format? (Official Requirements)

The Inland Revenue Department (IRD) of Nepal mandates specific elements that must appear on every tax invoice for VAT-registered businesses. Non-compliance can result in penalties during tax audits.

Mandatory Elements for IRD-Compliant Invoices:

1. 'Tax Invoice' Header clearly displayed in Nepali or English
2. Seller's Details: Business name, address, VAT/PAN number
3. Buyer's Details: Name, address, and VAT/PAN number (if registered)
4. Invoice Serial Number (unique for each financial year)
5. Invoice Date and Transaction Date
6. Description of Goods/Services with quantity and unit
7. Unit Price and Total Amount
8. VAT Amount separately shown (13% standard rate)
9. Total Amount Including VAT
10. Seller's Signature or authorized stamp

Understanding HS Code for Nepal Imports/Exports

What is HS Code?

The Harmonized System (HS) Code is an internationally standardized system of names and numbers for classifying traded products. Nepal follows the HS code system for customs, with codes typically consisting of 8-10 digits.

Why HS Code Matters for Nepali Businesses:

• Customs Clearance: Required for all imports/exports
• Tax Calculation: Determines applicable customs duties and VAT
• Trade Statistics: Government tracking of trade items
• Documentation: Needed on commercial invoices, packing lists

Common HS Code Categories in Nepal:

• 0701.10.00: Seed potatoes
• 0901.11.00: Coffee, not roasted
• 1006.30.00: Rice, semi-milled or wholly milled
• 5201.00.00: Cotton, not carded or combed
• 8544.42.00: Electric conductors, fitted with connectors

How to Find Correct HS Code for Your Products

1. Visit Nepal Customs Department Website: Access the official HS code directory
2. Use Online Search Tools: International trade databases with Nepal-specific codes
3. Consult Clearing Agents: Professional advice for accurate classification
4. Check Similar Products: Reference competitors' or suppliers' documentation

Free Nepal IRD Bill Templates & Format Samples

Creating compliant invoices doesn't have to be complicated. HamroInvoice offers pre-formatted templates that include all mandatory IRD requirements:

Downloadable Templates Include:

• Standard VAT Invoice Template (Bilingual: Nepali/English)
• Service Invoice Template for consulting and professional services
• Retail Cash Memo Format for point-of-sale transactions
• Export Invoice Template with HS code and INCOTERMS sections

All templates are 100% free with no watermarks and customizable for your business.

Step-by-Step: Creating IRD-Compliant Bills with HamroInvoice

1. Select 'Nepal IRD Format' template
2. Enter your business PAN/VAT number (required field)
3. Add client details (VAT number if applicable)
4. Input product details with correct units and quantities
5. System automatically calculates 13% VAT
6. Add HS codes for export/import items
7. Generate and download ready-to-use invoice

Recent Changes in Nepal VAT Regulations (2024-2025)

Stay updated with these important changes:

• E-Invoicing Pilot: Phase-wise implementation for large taxpayers
• QR Code Requirement: Proposed for all tax invoices (under discussion)
• Digital Payment Tracking: Enhanced integration with banking systems
• Threshold Changes: Updated VAT registration requirements for businesses

Common Mistakes to Avoid in Nepal Invoices

1. Missing VAT/PAN numbers of either party
2. Incorrect VAT calculation (not showing separately)
3. Using wrong invoice serial numbering system
4. Omitting seller's signature or stamp
5. Not maintaining duplicate copies for 6+ years
6. Incorrect HS code for imported/exported goods

FAQ: Nepal IRD Bills & HS Codes

Q: Is digital signature acceptable on Nepal tax invoices?
A: Yes, as per Electronic Transactions Act, digital signatures are legally valid for invoices.

Q: What happens if I use wrong HS code for imports?
A: Customs may impose penalties, delay clearance, or charge incorrect duties. Always verify codes.

Q: Can I issue English-only invoices in Nepal?
A: While English is accepted, bilingual (Nepali/English) invoices are recommended for broader compliance.

Q: How long should I keep invoice copies?
A: IRD requires maintaining records for at least 6 years from the end of the relevant fiscal year.

Tools & Resources for Nepali Businesses

• IRD Portal: Online tax filing and information
• Customs Department HS Code Search: Official classification tool
• HamroInvoice Nepal Templates: Free, compliant invoice generator
• Nepal Rastra Bank: Exchange rates for foreign currency invoices

Create Your IRD-Compliant Bills Today

Don't risk non-compliance with manual or incorrect invoice formats. Use HamroInvoice's Nepal-specific templates to generate professional, legally compliant bills with automatic VAT calculation and HS code tracking. Free forever, no watermarks, and optimized for Nepali business requirements.

Create Your First Nepal IRD-Compliant Invoice Now →