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Pakistan

Over 5,700 Point of Sales integrated with FBR system

The sales tax invoices issued by these POSs are being reported to FBR in real-time. In order to ensure correct
Published Updated
  • The sales tax invoices issued by these POSs are being reported to FBR in real-time.
  • In order to ensure correct reporting of sales by retailers and realization of due tax from them, FBR prescribed electronic integration of points of sales (POSs) of all tier-1 retailers.

The Federal Board of Revenue (FBR) has so far integrated 5,783 Point of Sales (POS) of 286 retailers to its system.

As per the tax collecting authority the sales tax invoices issued by these POSs are being reported to FBR in real-time. In order to ensure correct reporting of sales by retailers and realization of due tax from them, FBR prescribed electronic integration of points of sales (POSs) of all tier-1 retailers of textile and leather sector in budget 2018-19.

Initially, the integration was optional and to encourage the same an incentive of reduced rate of sales tax was provided. For integration, the retailers have to install software extension provided by FBR on their system, which ensures live reporting of sales tax to FBR’s server.

Live integration was operationalized with effect from 1st November 2018.

The authority informed that one of the salient feature of the system is that a customer or tax officer can easily verify through FBR’s website or a mobile app that invoice issued by the retailer has been duly reported to the Board and the tax charged thereon has been duly accounted for.

The provisions for mandatory integration of retailers were introduced in the Sales Tax Act, 1990, through the Finance Act, 2019, and proper rules were laid down. The deadline of 15th December, 2019, was provided for all retailers to integrate their POSs with FBR.

The FBR has also issued a list of vendors that have provided POS software to those retailers who have integrated their POSs with FBR.

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