ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday issued a list of 185 retailers for mandatory integration with online tax system.
The FBR directed the retailers to integrate with the online tax system by April 10, 2022 in order to avoid harsh action.
The revenue body issued Sales Tax General Order No. 11 of 2022 asking Tier-1 retailers for integration with FBR’s Point of Sale (POS) system.
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The FBR said that the Finance Act, 2019 added sub-section 6 to section 8B of the Sales Tax Act, 1990 whereby a Tier-1 retailer, who did not integrate its retail outlet in the manner prescribed under sub-section 9A of Section 3 of the Sales Tax Act, 1990 during a tax period, its adjustable tax for that period would be reduced by 15 per cent. The figure of 15 per cent has been raised to 60 per cent through Finance Act, 2021.
The FBR further said that in order to operationalize the important provision of law, a system-based approach has been adopted whereby all Tier-1 retailers, who are liable to integrate but have not yet integrated, with effect from July 2021 (sales tax return filed in August 2021) are to be dealt with as per the procedure laid down in STGO No. 1 of 2022 issued on August 3, 2021.
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As per latest the STGO a list of 185 identified Tier-1 retailers has been issued allowing them to integrate with FBR’s system by April 10, 2022 and the procedure of exclusion from the list of 185 identified retailers shall apply as laid down in Para 2 of STGO 1 of 2022 dated August 03, 2021.
The FBR said upon filing of sales tax return for the month of February 2022 for all notified Tier-1 retailers having yet integrated, their input tax claim would be disallowed as above, without any further notice or proceedings, creating tax demand by the same amount.
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