Nepal Oil Corporation Mandates Mandatory VAT Invoices for LP Gas Retail Sales

27th October 2026, Kathmandu

Nepal Oil Corporation (NOC) has issued a strict directive instructing all Liquefied Petroleum (LP) gas distributors and retailers to issue mandatory Value Added Tax (VAT) invoices to consumers upon selling cooking gas cylinders.

NOC Mandates Mandatory VAT Invoices

Directive Issuance and Compliance Orders

The state-owned oil monopoly acted following widespread consumer complaints regarding unbilled retail transactions.

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• Ministerial Disclosure: Minister for Industry, Commerce, and Supplies Deepak Kumar Sah publicly shared the official directive letter from Nepal Oil Corporation via social media channels on Monday evening.
• Departmental Letter: The LP Gas and Aviation Department of Nepal Oil Corporation dispatched the compliance notice to gas bottling plants and distributors across the country on Monday.
• Customer Grievance Basis: The regulatory directive responds to recurring public complaints indicating that retail gas vendors routinely fail to issue formal tax invoices or receipts to buyers following transactions.
• Prior Regulatory Circulars: Nepal Oil Corporation noted that it had previously issued similar compliance instructions on Shrawan 30, 2081 and Magh 10, 2081, issuing this fresh warning due to persistent non-compliance by retailers.

Enforcement Scope and Industry Obligations

The directive requires structural compliance across the entire cooking gas distribution chain.

• Industry-Wide Mandate: Gas bottling companies are instructed to ensure that their entire agent and sub-dealer retail network strictly generates VAT-compliant invoices for every transaction.
• Consumer Transparency: The mandatory billing requirement aims to curb price gouging, track domestic supply chains, and enhance tax compliance within the retail petroleum sector.

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