Nepal Tea Exchange
Nepal Tea Exchange was facing repeated rejection of export VAT refund claims at the Inland Revenue Department. Over three consecutive quarters, six major claims totaling NPR 45 lak…
Key Result
VAT Refund Success Rate
About the Client
Nepal Tea Exchange is a specialty tea export company based in Kathmandu, representing highland tea producers from the Ilam and Dhankuta regions. Founded by Aayush Poudyal in 2019, the company works directly with small-scale farmers to export premium orthodox teas to buyers in Europe, Japan, and the United States. By 2022, the company was processing over 15,000 kg of tea per export cycle but was bleeding cash due to unresolved VAT refund claims at IRD.
The Challenge
Nepal Tea Exchange was facing repeated rejection of export VAT refund claims at the Inland Revenue Department.
Over three consecutive quarters, six major claims totaling NPR 45 lakh had been rejected due to documentation errors — mismatched invoice formats, incorrect HS codes on customs declarations, and inconsistent descriptions between IRD records and customs export permits. Each rejection triggered a 30–60 day review cycle, crippling cash flow and delaying payments to upstream farmers. The founding team had no accounting background and had been managing compliance on their own using spreadsheets.
Our Approach
Conducted a complete retrospective audit of 3 years of VAT claims, identifying every error pattern and document mismatch
Standardized all export invoices to meet IRD's specific format requirements for goods eligible for zero-rated VAT
Trained the in-house finance team over 8 sessions on customs documentation, HS code classification, and IRD filing protocols
Established a dedicated communication channel with the company's assigned IRD officer to resolve disputes faster
Built a pre-submission checklist and internal review process so every future VAT refund claim is verified before filing
Set up monthly compliance review meetings to flag issues before filing deadlines and prevent backlogs
Our Solution
CCBC began with a full retrospective audit of three years of rejected claims and identified five recurring documentation errors. We standardized all export invoices to meet IRD's specific format requirements, trained the finance team in eight structured sessions covering customs documentation and HS code classification, and established a direct communication protocol with the company's IRD case officer. A pre-submission checklist was introduced so every VAT refund claim passes an internal review before filing. Monthly compliance review meetings now catch issues before deadlines, eliminating the reactive cycle that had caused the cash flow crisis.
Services Delivered
Results That Speak for Themselves
"CCBC didn't just fix our VAT issues — they transformed how our entire finance team thinks about compliance. We now export with complete confidence, and our cash flow has never been healthier."
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