Kathmandu— The Inland Revenue Department (IRD) of Nepal has urged both consumers and entrepreneurs to compulsorily obtain and issue tax invoices when purchasing and selling goods and services. This initiative aims to increase tax compliance and encourage the recording of actual transactions through a taxpayer incentive program, which requires purchase invoices for participation.

Mandatory Invoice Culture

The IRD has issued a public notice requesting the general public to develop a culture of obtaining and issuing invoices during all transactions. This move is intended to make the tax system more transparent, help record actual transactions accurately, and foster voluntary tax compliance among taxpayers.

Incentive Program Details

The taxpayer incentive program aims to boost tax compliance by offering incentives for those who participate. Consumers must obtain a purchase invoice when buying goods or services to be eligible for the prizes offered under this program, highlighting the importance of obtaining invoices.

PAN Requirements

Businesses that have been operating without a Permanent Account Number (PAN) are urged by the IRD to obtain one immediately and join the tax system. This step is crucial for ensuring transparency in business transactions and aligning with the new requirements set forth by the department.

(With inputs from My Republica)

Originally published on abcnews.com.np.