Tier-1 retailers’ invoices: FBR specifies utilisation of Re1 service charge

ISLAMABAD: The Federal Board of Revenue (FBR) will use nominal service charge - @ Re1 per invoice to promote integration of all Tier-1 retailers, launch publicity campaign and finance a special prize scheme for all customers.

The FBR has announced that the nominal service charge @ Re1 per invoice of whatever denomination, would be collected by the T-1 retailers from their customers under Section 76 of the Sales Tax Act, 1990.

On Saturday, the Federal Board of Revenue (FBR) strongly rebutted the malicious disinformation campaign being spread on the social media against the proposed service charge @ of Re1 to be collected on all invoices issued by Tier-1 retailers integrated with the FBR’s electronic system of real-time reporting of sales.

It is being insinuated as if the rate of the service charge is one percent instead of Rupee one per invoice only.

This is completely baseless and untrue.

The nominal service charge @ Re1 per invoice of whatever denomination, would be collected under Section 76 of the Sales Tax Act, 1990, and utilised to promote integration of all Tier-1 retailers, launch publicity campaign, and finance a special prize scheme for all customers who duly verify their invoices to determine the validity and genuineness of the invoices issued by the integrated Tier-1 retailers, the FBR added.

The malicious campaign appears to have been initiated by the vested interests who oppose POS integration, and those who continue to collect sales tax from the general public but do not deposit it with the government treasury.

POS service fee: T-1 retailers to collect Re1 per invoice: FBR

The FBR has re-affirmed its resolve to continue integrating Tier-1 retailers across the country with vigor, the FBR added.

Last month, the FBR had issued instructions on regarding operationalisation of SRO 1006(1)/2021 dated 9th August 2021.

The FBR stated that a standardised format of the sales tax invoice has been issued detailing the “minimum requirements” of the sales tax invoice.

It is informed that the “Invoice No” at the top of the standardised invoice is the “Unique sequential invoice number” as per Sub Rule (5) of Rule 150 ZEB of the Sales Tax Rules 2006 and will portray the Tier-1 retailer’s own sequential invoice number.

The FBR invoice number shall be the 18-digit FBR’s fiscal invoice number as per Sub Rule (6) of Rule 150 ZEB of the Sales Tax Rules, 2006.

The FBR had issued an SRO 1006(I)/2021 to issue a standardised format for invoices for the retailers/integrated suppliers.

According to the SRO 1006(I)/2021, the name is required to be recorded when the customer is liable for the tax or credit or invoice value is above Rs100,000.

The POS Service Fee of Re1 per invoice shall be collected by the T-1 retailer from the customer and shall be deposited along with the monthly sales tax return, which is being amended to include a row for “POS Service Fee”.

Taxmen deputed at big retail outlets to monitor sales

This row shall be auto populated by the system based on the invoices generated and recorded at the board’s computerised system.

The POS service fee collected each month shall be deposited by the T-1 retailer in a separate head of account, the FBR said.

Under rule 150ZEB of the Sales Tax Rules, 2006, the registered persons (integrated suppliers) shall install such fiscal electronic device and software, as approved by the board, available on its website with complete technical instructions for installation, configuration, and integration.

The integrated suppliers shall notify to the board, through the computerised system, of all their outlets and the integrated supplier shall register each POS to activate the integration.

Under the standardised format for invoices, the following information inter alia is required to be clearly printed on every invoice issued through all PoS systems integrated with the FBR, namely:(A) Business information; (B) Invoice details; (C) Transaction details; and (D) the FBR details.

Copyright Business Recorder, 2021