FBR withdraws credit card details on sales through POS

KARACHI: Federal Board of Revenue (FBR) has withdrawn requirement of details of credit card holder in case sales made through Point of Sale (POS) of textile and leather sectors under concessionary regime.

The FBR issued SRO 180(I)/2019 dated February 04, 2019 to amend Sales Tax Rules, 2001. The amendments have been made mainly in the rules pertaining to recently announced concessionary sales tax rates for sales through point of sales, which are integrated with online system of FBR.

An amendment has been made to clause (k), sub-rule 5 of rule 150ZEB and the requirement of providing sales ‘in case of credit card, the name of client and other relevant details.’

Under this rule a taxpayer is required to transmit the sale invoice for each transactions including mode of payment, cash or credit card.

The FBR through SRO 1360(I)/2018 dated November 12, 2018 notified rules for allowing concessionary sales tax rate of 6 percent to textile and leather sector on condition to integrated details of supplies with FBR online system.

The sectors have been offered at six percent sales tax rate instead of 9 percent for providing information under the integrated system.

“The integrated suppliers shall notify to the Board [FBR], through the computerized system of all their outlets, hereinafter referred to as notified outlets, from which they intend to sell the supplies subject to lower rate as specified in the said condition (xv) and the integrated suppliers shall register each point of sale (POS) to activate the integration duly providing information…”

In the amended rules through SRO 180(I)/2019, the FBR also made certain changes related to online sales.

It said that online sales made through website hosted with a registered domain name shall also be treated as sales made through point of sales on a notified outlet and accordingly covered under the purview of this rules, provided the sale data transmitted to the Board’s Computerized System through a prescribed integration software with the same particulars as stipulated in sub-rule (5) and invoice in provided to the customer with particulars as in sub-rule (6).

Such website or websites shall be registered with the computerized system with details included: domain name; domain name provider; name of service provider managing the website; and address of supply centers and warehouses.

The FBR said that sales made through social media portals shall also be treated as covered under this sub-rule (5) and (6) are compiled with.

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