IRD Directives & Procedures: The Legal Backbone
The Inland Revenue Department (IRD) has set strict rules for electronic billing through:
- Public Notice (Jestha 20, 2079 / June 2022)
- Mandatory e‑billing for:
- VAT‑registered businesses with annual turnover above NPR 10 crore.
- Hospitality/restaurant/canteen sectors above NPR 5 crore.
- Certain sectors like department stores and flooring businesses above NPR 10 crore.
- Mandatory e‑billing for:
- Public Notice Updates
- The NPR 250 million (Rs 25 crore) CBMS sync threshold was already in place; the 2023 notice was a compliance reinforcement urging businesses to complete migration.
- Electronic Billing Procedure, 2074 (4th Amendment, Oct 2021)
- Defines technical and procedural requirements for e‑billing software, including CBMS integration, invoice formatting (Annex‑5/6), hosting conditions, and audit‑trail standards.
- Directives
- Reinforces the above rules, detailing submission process for software listing, technical compliance checks, and enforcement guidelines for tax offices.
👉 These rules make it clear: if you meet the turnover thresholds or are in a listed sector, you must use IRD‑approved billing software—and OneFlow is fully compliant.
What the Directives Require from IRD‑Approved Software
Under the Electronic Billing Procedure, 2074 (4th amendment) and directive 1958456687, any IRD‑certified software must:
- Support CBMS integration for real‑time or scheduled data sync.
- Generate fiscal‑year based invoice numbers with proper reprint labeling (Copy of Original–2/3…).
- Maintain an immutable audit trail—no hard deletes; every edit must record user, time, and reason.
- Store data securely—cloud hosting must be in Nepal (or with local backup accessible to IRD).
- Enable VAT rebate reporting (Schedule‑8 format) for digital payments like QR and card.
OneFlow meets all these standards—from Annex‑5 invoice formats to CBMS API communication and secure local hosting.
OneFlow Features Aligned with IRD Rules
| IRD Requirement | OneFlow Capability |
|---|---|
| CBMS Real‑Time Sync | Built‑in integration with CBMS API, automatic retry, sync logs. |
| Annex‑5/6 Invoice Numbering | Fiscal‑year numbering with auto reset; reprint copies marked. |
| Audit‑Trail Integrity | PostgreSQL ledger, soft delete, user/time/reason tracking. |
| Schedule‑8 VAT Rebate Messaging | Digital payment API formatting for 10% VAT rebate reporting. |
| Local Hosting & SLA | Hosted in Nepal (Kathmandu DC) with SLA filed to IRD. |
| VAT Return Reports (305/306/308) | Exportable in IRD formats with Nepali calendar alignment. |
Why Compliance Matters (Risk vs. Protection)
| Risk Without IRD‑Certified Software | OneFlow Advantage |
|---|---|
| Fines up to NPR 500,000 | IRD‑listed and certified. |
| VAT invoices rejected | PAN/VAT compliant invoice templates. |
| Edited invoices without logs | Immutable audit trail and reprint markings. |
| Loss of VAT rebate on QR payments | Built‑in Schedule‑8 reporting. |
| Hosting violations | Fully local hosting compliant with IRD SLA. |
Getting Started: OneFlow IRD Listing & Setup
Step‑by‑Step Roadmap:
- Check your eligibility: Above NPR 10 crore turnover (or NPR 5 crore for hospitality) or above NPR 250 million CBMS threshold.
- Request CBMS Test Report from OneFlow (IRD test server verification).
- Prepare required documents:
- PAN/VAT certificate
- Tax clearance certificate
- Sample invoice (Annex‑5/6)
- CBMS connectivity report
- Hosting and backup policies (OneFlow provides ready versions)
- Submit Software Listing Form via IRD Taxpayer Portal → Electronic Billing.
- Switch to production before next VAT return—run dummy invoices, check CBMS sync, finalize setup before Ashadh‑end.
Final Thoughts: Why OneFlow is the Smarter Choice
The IRD’s notices and directives make one point clear: use IRD‑approved e‑billing software or face penalties.
With OneFlow, you get:
- Certified compliance with all IRD formats and CBMS requirements.
- Audit‑ready reports for VAT, CBMS, and fiscal‑year returns.
- Local hosting, IRD SLA, and continuous updates to match regulation changes.
👉 Be compliant, be audit‑ready, and simplify your accounting.
Start your 15‑day free trial of OneFlow and issue your first IRD‑synced invoice today.