FBR imposes service charges on POS invoices

FBR imposes service charges on POS invoices

ISLAMABAD: Federal Board of Revenue (FBR) on Friday imposed service charges on invoices issued through Point of Sales (POS) that are integrated with the FBR system.

The FBR said that the federal minister-in-charge had approved to levy service charges at a rate of rupee one per invoice issued through all point of sales (POS) integrated with the FBR’s computerized system for the real time reporting of sales.

The service charges will be collected by the Tier-1 retailers, who are integrated with the FBR’s computerized system and deposited in a designated account along with monthly payment of sales tax and filing of the sales tax return.

In order to implement the decision the FBR issued SRO 1279(I)/2021 dated September 30, 2021.

Previously, in a clarification Federal Board of Revenue (FBR) has said that only one rupee will be collected by retailers of Point of Sale (POS) as service charge on the total amount of each invoice.

The FBR strongly rebutted the malicious disinformation campaign being spread on social media against the proposed Service Charge of Re1 to be collected on all invoices issued by Tier-1 Retailers integrated with FBR’s electronic system of real-time reporting of sales.

It is being insinuated as if the rate of the Service Charge is 1 percent instead of Rupee 1 per invoice only. “This is completely baseless and untrue.”

The nominal Service Charge @ Re. 1 per invoice of whatever denomination, would be collected under section 76 of the Sales Tax Act, 1990, and utilized to promote the 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, 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.

FBR has re-affirmed its resolve to continue integrating Tier-1 Retailers across the country with vigor.