Nepal PAN / VAT Number Formatter & Validator

In Nepal, both PAN (Permanent Account Number) and VAT (Value Added Tax) numbers are identical in structure: a unique 9-digit numeric code issued by the Inland Revenue Department (IRD). The distinction lies in registration status: a business with only a basic PAN is not VAT-registered, cannot collect 13% VAT, and issues plain PAN sales bills. A VAT-registered business has an active VAT certificate from the IRD, legally must charge 13% VAT on taxable transactions, issues formal Tax Invoices, and is entitled to claim Input Tax Credit (ITC) on its business purchases.

Under Section 10 of the Nepal Value Added Tax Act 2052, registration in VAT is legally compulsory once annual turnover exceeds: (1) NPR 50 Lakhs (Rs 50,00,000) for businesses dealing purely in goods/commodities. (2) NPR 20 Lakhs (Rs 20,00,000) for businesses offering services or a mix of goods and services. Additionally, businesses in designated urban sectors (such as hardware, electronics, automobile parts, liquor, supermarkets, and consultancies) must register in VAT from day one, regardless of turnover.

Under Section 92 of the Nepal Income Tax Act 2058, any business expense or raw material purchase exceeding NPR 1,000 must be supported by an invoice quoting the buyer's 9-digit PAN. Crucially, any business purchase exceeding NPR 10,000 paid to an unregistered party without a PAN is disallowed as a tax-deductible expense by tax auditors, artificially inflating your taxable profit and increasing corporate tax liability.

This validator performs real-time syntax, length, character masking, and series classification. To verify the live registered trade name, active tax status, and assigned tax office (IRO/LTO/MTO), visit the official IRD Taxpayer Portal at taxpayerportal.ird.gov.np and select 'Taxpayer Information Search'. ByaparOS automatically integrates real-time customer and supplier PAN validation directly into retail POS billing.

IRD Nepal issues 9-digit PANs with structured series indicators: Series 60xxxxxxx and 61xxxxxxx are standard for Private Limited companies and corporate entities; Series 10xxxxxxx and 30xxxxxxx are widely assigned to individual taxpayers and commercial sole proprietorships; Series 20xxxxxxx is designated for Government ministries, municipalities, and public institutions.

For ordinary walk-in retail customers purchasing consumer goods under NPR 25,000 in cash, quoting a customer PAN is optional. However, if a single retail transaction reaches or exceeds NPR 25,000, or if the customer requests a formal tax bill for their organization's expense claiming, quoting their verified 9-digit PAN is mandatory under IRD rules.