Karachi, December 9, 2023 – The Federal Board of Revenue (FBR) has unveiled updated Sales Tax Rules for the tax year 2024, introducing a comprehensive framework for obtaining sales tax registration.
The newly notified rules, particularly highlighted in Rule 5, aim to simplify and enhance the registration process.
Rule 5: Application for Registration
1. Application Procedure: Individuals or entities obligated to register under the Act must apply through the computerized system, utilizing the Form STR-1, as outlined in the rules. The application process involves specifying the Regional Tax Office (RTO) based on criteria such as the location of the registered office for public limited companies or the primary business activities for other companies.
2. Documentation Requirements: Applicants with a National Tax Number (NTN) or income tax registration must upload essential information and documents using their login credentials. These include:
• Bank account certificate issued by the business’s bank
• Registration or consumer number with gas and electricity suppliers
• Particulars of all branches for entities with multiple locations
• GPS-tagged photographs of the business premises
• For manufacturers, GPS-tagged photographs of machinery and industrial electricity or gas meters
3. Automated Registration: Upon submission of the required documents, the system will automatically register the applicant for sales tax.
4. Bio-metric Verification: After registration, the applicant or an authorized representative must visit the e-Sahulat Centre of the National Database Registration Authority (NADRA) within a month for bio-metric verification. Failure to comply with this verification process will result in removal from the sales tax Active Taxpayer List.
5. Post-Verification for Manufacturers: For manufacturers, the FBR may require post-verification through field offices or a third party authorized by the Board.
6. Document Scrutiny: In case of scrutiny after registration, if any document is found to be non-genuine, fake, or incorrect, the field office may request the missing document through the system. The registered person has fifteen days to provide the necessary document; failure to do so, subject to the approval of the Member (IR-Operations), FBR, will lead to removal from the sales Active Taxpayer List.
These new rules aim to streamline and modernize the sales tax registration process, promoting transparency and authenticity in compliance with tax regulations. The FBR emphasizes the importance of accurate documentation and timely verification to maintain active taxpayer status.
