If your accountant has mentioned 'IRD billing' or 'CBMS', you're not alone in being confused. Here's a plain-language explainer of what it means, who it applies to and how to choose a billing system. It isn't tax advice, so always confirm the current rules with your accountant or the Inland Revenue Department.
What is IRD billing?
IRD billing refers to invoices that follow the Inland Revenue Department's rules for VAT-registered businesses in Nepal. If you issue bills from software instead of a printed bill book, that software has to meet IRD's requirements, such as the required invoice details, sequential numbering, and records that can't be quietly changed or deleted.
What is e-billing and CBMS?
E-billing means issuing invoices electronically. Larger businesses are also required to connect their billing software to IRD's Central Billing Monitoring System (CBMS), which receives invoice data in real time. Which businesses must connect depends on rules IRD sets, including turnover thresholds that have changed over time, so check where you stand.
Ready-made or custom billing software?
| Ready-made billing / POS | Custom software | |
|---|---|---|
| Cost to start | Low, often a yearly licence | Higher, built for you |
| Setup time | Days | Weeks |
| Fits your workflow | You adapt to it | It adapts to you |
| Integrations (website, app, ERP) | Limited | Whatever you need |
| Best for | Shops, restaurants, small offices | Multi-branch, distributors, unusual workflows |
Most small shops and restaurants should start with a ready-made, IRD-approved billing or POS product. Custom software makes sense when billing is tied to something else you need, like an ecommerce site, a dealer portal, stock across branches or a booking system, and off-the-shelf tools force you into double entry.
What a good billing system should include
- IRD-format invoices with VAT, PAN and sequential numbers
- No deleting issued bills; credit notes instead
- Daily sales and VAT reports your accountant can export
- Stock updated automatically when you sell
- User roles so staff can't change prices or past bills
- Backups and a way to export data if you switch systems
How much does billing software cost in Nepal?
Ready-made billing and POS products are usually sold as yearly licences, with hardware like receipt printers and barcode scanners extra. A custom billing or inventory module from Sigma Nepal starts from NPR 1,50,000, and full ERP-style systems from NPR 4,00,000, because they're built around your exact process and connect to your other tools.
