How to Prepare for a Nepal VAT Review or Audit Notice

Control the notice

Record service date, response deadline, issuing office, periods and requested records. Assign responsibility and seek clarification where scope is genuinely unclear.

Build a transaction trail

For selected sales or purchases, connect contract, invoice, delivery or work evidence, payment, stock and ledger. Organise by issue rather than sending an unindexed data dump.

Explain reconciliations

Bridge returns to financial statements, imports, withholding records and bank activity. Separate timing differences, classification differences and errors, with quantified corrections.

Protect credibility

Never create replacement evidence after the event or alter invoices silently. State what is unavailable, why, and what independent evidence supports the transaction. Obtain professional help for assessment or appeal deadlines.

A practical control to retain

Prepare a response index matching every request in the notice to a document or written explanation. Keep copies of exactly what was submitted and evidence of delivery. Quantify any self-identified error separately and consider the correct legal correction route before volunteering an unsupported number. Meetings should have notes, attendees and follow-up actions. Assessment, objection and appeal deadlines require immediate professional attention.

For taxpayers, accountants and advisers responding to ird, the sign-off should answer the guide's four core questions in writing: Read the period and request exactly. Preserve original evidence. Reconcile differences before explaining them. Do not submit invented or backdated records. Record who checked those answers, the source date and any unresolved fact. If a later invoice, contract or Schedule amendment changes one answer, reopen the classification or return treatment instead of silently carrying the old assumption forward.