Taxpayers must enter all eight digits of NTN: FBR

The Federal Board of Revenue has directed the corporate sector, withholding agents and other categories of taxpayers to enter all eight digits in the boxes on the printed National Tax Number (NTN) form instead of existing seven digits NTN from January 1, 2011.
The FBR will not accept National Tax Numbers (NTNs) without eighth digit (check digit) from January 1, 2011, which is necessary for filing of withholding tax statements, sales tax invoices summaries and tax payments etc. At present NTN contains eight digits, including one 'check digit'.
Sources told Business Recorder here on Wednesday that the NTN would not be acceptable by the FBR without proper check digit from January 1, 2011. Therefore, taxpayers should accurately specify the eighth digit of the NTN. The taxpayers have to provide the seven digits NTN as well as the eighth check digit. In this way, taxpayers would mention the eight digits NTN.
For the facilitation of taxpayers, the NTN inquiry system of the FBR has introduced a mechanism to inform the taxpayers about their proper check digits. The taxpayers can avail the facility by approaching the NTN inquiry system for knowing about the check digit.
The FBR has launched the awareness campaign for the last one year to inform the taxpayers about the necessity of mentioning the eighth digit of the NTN. As the NTNs without the check digit would no be acceptable by the tax department from next year, the taxpayers should now start mentioning the check digit as well. This would ensure the authenticity of the NTN and prevent any misuse of the tax number. The 'check digit' box has been printed to verify that the taxpayer has mentioned the accurate NTN or not. This 'check digit' has been worked out on the basis of first seven digits of NTN as a verification tool. Taxpayers usually enter only seven digits of the NTN form, as the FBR has never directed the taxpayers to also enter the last check digit. Now it has been decided that the taxpayers would also mention all eight digits of the NTN. For example, instead of mentioning 0622438 as NTN number, the taxpayer would specify 0622438-9 ie including "9", which is the check digit.
During the last one year, the FBR has given ample time period to the withholding agents and business entities to incorporate necessary changes in their computerised system in this regard.. Referring to the computerised national identity card number (CNIC), sources said that the people specify all digits of the CNIC. On the same pattern, all digits of NTN would be mentioned by the taxpayers from January 1, 2011.
In this connection, the FBR has requested the taxpayers to write the NTN correctly. "NTN without proper check digit will not be accepted by the FBR from January 1, 2011". The FBR would enforce the complete eight digits of the NTN from the specified deadline, the FBR added.