How to Verify VAT Bills and PAN in Nepal 2026
heck PAN numbers using Nepal IRD, understand VAT registration, inspect tax invoices and recognise billing warning signs. Practical 2026 guide.
How to Verify a VAT Bill and PAN Number in Nepal in 2026
Quick answer: To check a seller's PAN, open the Inland Revenue Department's official PAN Search and enter the number printed on the invoice. Compare the returned taxpayer details with the seller. A valid PAN is not proof that the seller is registered for VAT, and a genuine business registration is not proof that every invoice is correctly issued. If the seller charges VAT, confirm the seller's VAT registration status and inspect the tax invoice before relying on it for accounting or input-tax purposes.
This guide is for ordinary consumers, businesses and bookkeepers who want to recognise common invoice problems. It does not replace professional advice about input VAT, tax audits or a disputed assessment.
PAN, VAT registration and tax invoice: three different things
| Item | What it establishes | What it does not establish |
|---|---|---|
| PAN | Taxpayer identification with the Inland Revenue Department | Automatic entitlement to charge VAT |
| VAT registration | Registration under the VAT system where applicable | Proof that every invoice is genuine or deductible |
| Tax invoice | A document recording a taxable supply and its details | Independent proof that the underlying transaction occurred |
| Payment receipt | Evidence of payment, subject to verification | Replacement for a legally required tax invoice |
The IRD FAQ explains that income tax and VAT use the same PAN identifier; a separate PAN is not issued just because a taxpayer registers for VAT. However, a PAN-only business must complete VAT registration where required before treating itself as VAT-registered. This is why a nine-digit number on a bill cannot settle the question.
Step 1: Obtain the seller's full invoice
Ask for a readable invoice showing the seller's legal or trading name, PAN/VAT identifier, invoice number, date, description of goods or services, amounts and applicable tax details. The exact statutory invoice requirements depend on the taxpayer and transaction type. A handwritten cash note, screenshot or payment-app confirmation may be useful evidence of payment, but should not automatically be treated as a valid VAT tax invoice.
If you buy on behalf of a registered business, tell the seller at the time of purchase what buyer details your accounting team needs. Correcting an invoice later can be harder than requesting it properly at checkout.
Step 2: Use IRD's official PAN search
- Open IRD PAN Search.
- Locate the field labelled for Permanent Account Number (स्थायी लेखा नम्बर).
- Enter the PAN from the invoice carefully, without changing digits.
- Submit the search using the official website.
- Compare the returned taxpayer name and any registration details displayed with the seller's invoice.
- If the result is missing, inconsistent or unclear, ask the seller to explain and confirm with the appropriate Inland Revenue Office.
A PAN lookup is a verification step, not a guarantee that a transaction is legitimate. An invoice can display another business's real PAN without authorisation. Confirm the business identity and payment beneficiary independently for high-value transactions.
Step 3: Confirm whether VAT was correctly charged
The IRD FAQ states the standard VAT rate as 13%, subject to the law and the nature of the supply. Not every good or service is necessarily subject to the same treatment. If the seller adds VAT, check whether the supplier is registered for VAT and whether the transaction is taxable. A seller's possession of a PAN alone is insufficient.
If the public search result does not clearly show current VAT status, contact IRD or the seller's tax office. Do not infer VAT registration solely from the invoice design, the presence of a stamp or the fact that the seller has a company-registration certificate.
Example calculation for a taxable sale
For a hypothetical taxable item priced at NPR 1,000 before VAT, 13% VAT would be NPR 130 and the total NPR 1,130. This is a simple arithmetic example, not a claim that every transaction is taxable. If the advertised price already includes VAT, the tax component is calculated differently: divide the VAT-inclusive total by 1.13 to determine the taxable base, subject to applicable rounding and rules.
| Hypothetical figure | Amount |
|---|---|
| Taxable value | NPR 1,000 |
| VAT at 13% | NPR 130 |
| Total payable | NPR 1,130 |
The correct treatment can depend on exemptions, zero-rating, invoice type and applicable law. For significant business purchases, have a qualified accountant review the treatment.
Step 4: Inspect the invoice fields
Use the following checklist, adapted as a practical consumer control rather than a substitute for the prescribed legal format.
| Check | Why it matters | Warning sign |
|---|---|---|
| Seller name | Identifies the legal supplier | Different name from contract or receipt |
| PAN/VAT identifier | Allows taxpayer lookup | Missing or mismatched digits |
| Invoice date | Supports accounting period | Altered or inconsistent date |
| Serial/invoice number | Helps trace the transaction | Duplicated or manually overwritten number |
| Description | Shows what was supplied | Vague “services” for a high-value purchase |
| Quantity and rate | Supports price calculation | Total cannot be reconciled |
| VAT line | Shows tax treatment | VAT charged without a clear basis |
| Final total | Supports payment reconciliation | Does not match payment proof |
| Buyer details where applicable | Supports business records | Wrong company name or PAN |
Do not rely on appearance alone. A neatly printed invoice can be false, while a less attractive invoice may still be legitimate if it meets applicable rules. Ask the seller for clarification before accusing anyone of fraud.
Step 5: Match the invoice to payment and delivery
For an important purchase, keep the purchase order or agreement, delivery confirmation, invoice and bank or wallet payment record together. Match the seller, goods, quantities, date and amount. A tax invoice from Company A with payment requested to an unrelated personal account is a reason to verify before transferring funds.
For online shopping, retain the product listing, order ID and customer-service communication. For a business service, keep the scope of work and evidence that the work was delivered. These records are useful even when a PAN lookup succeeds.
Step 6: What to do if a bill looks suspicious
First, ask the seller for a corrected or properly explained invoice. Identify the specific discrepancy rather than making a broad allegation. If the seller refuses or you suspect deliberate misuse of a PAN or VAT charge, contact the Inland Revenue Department or the relevant tax office using official contact details. The IRD site lists service contacts and notices about invoice issuance.
Keep the original document, screenshots, payment reference and correspondence. Avoid posting the seller's PAN together with personal contact information or an individual's identity documents on social media. If a consumer transaction also involves non-delivery or misleading advertising, the appropriate consumer-protection authority may be relevant, but tax registration and consumer remedies are different processes.
Special considerations for businesses claiming input VAT
A business's right to claim input VAT depends on the applicable law, valid documentation, the nature of the purchase and its use in taxable activities. Finding a PAN number online does not automatically establish input-credit eligibility. Confirm supplier VAT registration and invoice compliance, and consult your accountant before including disputed amounts in a return.
Maintain a consistent record of purchases and tax invoices. If a supplier later corrects or cancels an invoice, preserve the correction trail. Do not alter the original PDF or fabricate a replacement invoice for accounting convenience.
PAN verification for a new company
A company registration certificate and a business PAN serve different functions. Our guide to registering a private limited company in Nepal explains the sequence and the distinction between incorporation and tax registration. If you have just started a company, verify the issued PAN with IRD and confirm whether VAT registration is required before issuing VAT invoices.
For business owners building an online presence, Ratings Nepal's company listing guide explains how to present accurate business information publicly. A directory listing is not proof of VAT registration or tax compliance.
Common invoice problems and appropriate responses
The PAN number returns a different business name
Check whether the invoice uses a trading name, branch name or legal entity name. Ask the seller for the registered taxpayer name and supporting explanation. If it remains inconsistent, verify directly with IRD before relying on the invoice.
The seller adds “13% VAT” but cannot show VAT registration
Ask for the basis of the charge and confirmation of registration. Do not assume every PAN holder can charge VAT. Keep the bill and contact IRD if the explanation is unsatisfactory.
The seller offers a lower price without a bill
Ask for the proper invoice or receipt required for the transaction. An unrecorded cash discount can expose the buyer to disputes, weak warranty evidence and accounting problems. Do not participate in falsifying the purchase price.
The invoice number is duplicated
It may be a clerical error, but it warrants investigation. Request the seller's explanation and a properly documented correction. Businesses should avoid recording two different transactions under one invoice reference without resolution.
The payment app says successful but the invoice is missing
A successful payment confirmation is not automatically a tax invoice. Request the seller's invoice separately and retain the payment reference until it is received.
Frequently asked questions
How can I check a PAN number in Nepal?
Use the official IRD PAN Search and compare the result with the invoice and seller's identity.
Is a PAN number the same as a VAT number?
IRD uses the same PAN identifier for income-tax and VAT purposes. VAT registration is a separate status, not a second PAN number.
Can a PAN-registered shop charge 13% VAT?
Not merely because it has a PAN. VAT registration and the tax treatment of the supply must be confirmed under current law.
What is the VAT rate in Nepal in 2026?
The IRD FAQ describes the standard rate as 13%. Check whether your particular supply is taxable, exempt or subject to another treatment under current law.
Does an IRD PAN search prove that a bill is genuine?
No. It helps verify taxpayer identity but does not independently authenticate a particular invoice or delivery.
Is a digital receipt enough for input VAT?
Not automatically. The document must satisfy applicable tax-invoice and recordkeeping requirements. Ask a qualified accountant when claiming input credit.
What if the IRD website does not load?
Try again later from the official domain, preserve the invoice and contact the relevant Inland Revenue Office. Do not enter PAN or private details into a lookalike site just because it loads faster.
Where should I report a suspected fake VAT bill?
Start with the seller for clarification and then use official IRD channels or the relevant tax office if the concern remains. Keep evidence and avoid publishing accusations before verification.
Sources, methodology and limitations
This guide relies on the IRD PAN Search, IRD frequently asked questions and the IRD official website, reviewed 27 October 2026. The PAN search form was publicly accessible, but no real taxpayer number was submitted during this editorial check. Therefore, we do not claim to have verified any individual merchant's tax status. Current invoice regulations and tax treatment should be checked for the specific transaction.
Help other customers make informed decisions: If you have firsthand experience with a business's billing clarity and customer support, share a fair review through Ratings Nepal. Do not post your invoice, personal address, PAN-related identity documents or payment credentials publicly.