PAN and VAT Registration Verification in Nepal

A registration check should answer whose PAN is on the document and whether the required VAT or other tax status applies. It cannot certify that every invoice is genuine, an expense is deductible, tax has been fully paid or a supplier is solvent. Match the official result with the contract, invoice and business identity rather than treating a number with the right length as validated.

This procedure guide is prepared for checks conducted in FY 2083/84. Use the live public search or relevant official verification function reached through IRD. Keep the supplier-verification result in the transaction file. Private government records may have separate access controls.

Avoid placing unnecessary identity documents or government screenshots containing private details in a public file. Store the verification record in the supplier file with controlled access.

Take the PAN from the supplier's current tax document or invoice. Open the official IRD verification service from the authority's site. Enter the identifier carefully and review the displayed name and registration information. Compare the result with the invoice issuer and contracting party. Save the relevant result and resolve differences before approving the transaction's tax treatment.

If the service is unavailable or the result is inconclusive, record that fact. Ask for the accepted registration evidence and seek clarification through the official channel when needed. An unavailable result should not be recorded as a successful check, but it also does not by itself prove the supplier is unregistered.

Suppose an invoice is issued by “Himal Finance Services” while the PAN search shows a named proprietor. Obtain evidence that the trading name belongs to that proprietor and that the supplier is the contracted party. If the search instead identifies an unrelated company, stop relying on that PAN and request a corrected document. The control question is the relationship between the number, legal person and transaction.

For a VAT invoice, verify the relevant VAT status as well. A valid PAN belonging to the right proprietor does not alone make the VAT amount creditable. The usual invoice, business-use, timing and restriction conditions still need to be satisfied.

Current registration information may not establish status on an earlier invoice date, especially after cancellation or conversion. Retain the original registration and any effective-date evidence where the transaction is historical. Tax clearance verification answers a separate certificate question. Check the certificate through the official verification route and preserve its applicable period rather than treating clearance as proof of unrestricted future compliance.

Recheck supplier particulars when the legal entity changes or a material discrepancy appears. Correct the vendor master through an approved change record. Keep the old mapping so earlier invoices and withholding reports remain traceable, and review whether any already-filed payee records require correction.

If a supplier’s current VAT status differs from the status shown on an older invoice, identify the effective dates rather than assuming the current record settles the past. Retain the relevant registration or cancellation evidence and ask for an explanation of any change in legal entity. A proprietor incorporating a company may create a different supplier even when the trading name remains the same. Suppose an invoice dated six months earlier names a company, but the PAN supplied now belongs to the former proprietor. Obtain the correct legal supplier and period-specific evidence. Amending only the PAN on a saved image without the issuer’s proper correction weakens the document trail. A matching trade name and phone number do not resolve the legal identity difference. For a VAT credit, continue with the separate invoice, taxable-business use, timing and restriction tests. For withholding, identify the recipient type and applicable provision as well as registration. A verification result should be one recorded control within the full transaction file, not an approval stamp covering all tax questions.