FBR emphasizes the importance of digitalization and seeks private sector collaboration
Islamabad, June 21, 2023 – The Federal Board of Revenue (FBR) announced on Wednesday that it has issued approximately Rs540 billion worth of invoices through the Point of Sale (POS) system in the span of one year.
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KARACHI: Defacing sales tax invoice has been declared as an offence under Sales Tax Act, 1990 as amendment has been made through Finance Act, 2022.
The defacing of sales tax invoice will attract penalties as well as imprisonment.
READ MORE: FBR to collect 3% further tax on supply to inactive taxpayer
According to explanation of amendments made through Finance Act, 2022, issued by PwC A. F. Ferguson, defacing the prescribed invoice number or the barcode or QR code has been introduced as an offence subject to levy of penalty of higher of Rs 500,000 or 200 per cent of the amount of tax involved.
Upon conviction by a Special Judge, a simple imprisonment for a term which may extend to two years, or with additional fine which may extend to two million rupees, or with both may also be imposed.
READ MORE: FBR starts online monitoring sales of jewelers
Any person who abets commissioning of such offence has also been made liable, upon conviction by a Special Judge, to simple imprisonment for a term which may extend to one year, or with additional fine which may extend to two hundred thousand rupees, or with both.
Certain penalties were introduced through Tax Laws (Third Amendment) Ordinance, 2021 on failure of Tier-1 retailers to register and integrate business which have now been ratified in the Act.
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The Finance Act, 2022 also amended laws related to powers of the FBR regarding initiating criminal proceedings.
The powers of the FBR to prescribe rules for initiating criminal proceedings against any specified authority for willful or deliberate acts/omissions resulting in personal benefits and undue advantage to authority, person or taxpayer have been withdrawn. Earlier, the FBR was empowered to this effect through Finance Act, 2019.
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ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday announced winners of third balloting of invoices issued through Point of Sale (POS) of retailers.
According to the FBR, the bumper prize of Rs1,000,000 has been awarded to Nasreen Akhtar on the invoice issued by Save Mart.
READ MORE: FBR announces prize winners in second POS invoice balloting
The FBR announced winners of two second prizes of Rs500,000 each to Muhammad Sajid Aslam on the invoice issued by New Haji Super Store and Raheel Shahbaz on the invoice issued by Rahat Bakers.
Similarly, the four winners of third prize amounting Rs250,000 each are Muhammad Shahid ur Rehman, Shahbaz Ahmad, Gul Niaz Bibi and Furqan.
The FBR conduct computerized balloting of invoices issued by Tier-1 retailers on every 15th day of a month. This was third draw as it was started in January 15, 2022.
The FBR encouraged people to actively participate in the balloting to win prizes after buying from POS integrated retailers.
READ MORE: FBR announces winners of first POS prize draw
The FBR previously issued a procedure for participating in the prize scheme.
The revenue body said that the customers of the integrated tier-1 retailers, whose names and CNICs are notified through random computerized draw shall be entitled to prizes in respect of their purchases from the integrated tier-1 retailers.
The customers shall verify the electronically generated invoice of integrated retailers either through the “tax asaan” application or by sending SMS to number 9966.
READ MORE: Prize scheme on invoices issued by retailers
The application shall notify the customer regarding the status of the invoice either as “verified” or “unverified”.
In case of a verified invoice, the customer shall furnish one time, the following detail to the online system, namely:- Name; CNIC; and Mobile number.
Names and CNICs of the customers shall be included in the random computerized draw upon fulfillment of the requirement.
In case of an unverified invoice, the customer shall report the same through the system. The Board shall conduct inquiry and take appropriate action under the relevant provisions of law.
READ MORE: FBR launches prize scheme for POS customers
The computerized draw for the prizes shall be held in the first week of every month at the FBR Headquarters and the invoices of the immediately preceding month shall be entered in the draw.
Draw winners shall be required to perform biometric verification, at the nearest e-sahulat facility of NADRA and submit a scanned copy on the “tax assan” application. After successful biometric verification, winners shall be required to provide their IBAN through a “tax asaan” application.
The total prize money and the denomination of the prizes shall be decided on month to month basis by the Board.
KARACHI: Federal Board of Revenue (FBR) has issued procedure for verification of sales tax invoices prepared by Tier-1 retailers.
According to FBR officials the following procedure shall be adopted for the verification of sales tax invoices.
— Customer visits the counter to pay for his/her shopping.
— Counter Boy Prepares the Invoice.
— Invoice is forwarded to FBR system for invoice number.
— Fiscal Invoice is generated and stored in FBR Sale Data Controller and returns a fiscal invoice number to POS.
— Point of Sale (POS) generate the QR Code for fiscal invoice.
— The receipt is printed out from the POS and physically delivered to the customer.
— Customer receives the printed fiscal invoice and verify it from FBR System using any of proposed mode.
The officials said that
Tier -I retailer as defined under Section 2(43A) of Sales Tax Act 1990 are required to integrate their sales with the FBR.
Tier-1 retailer means:-
A retailer operating as a unit of a national or international chain of stores.
A retailer operating in an air conditioned shopping mall plaza or centre, excluding kiosks.
Retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds rupees six hundred thousands.
A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers.
A retailer whose shop measures one thousand square feet in the area or more.
The officials said that the integrated supplier shall prominently display on each outlet a signboard bearing FBR’s official logo along with the text “Integrated with FBR” and also registration number of each POS verifiable through FBR verification services.
Explaining the benefits of establishing integration with the FBR, the sources said that supplies of finished fabric and locally manufactured finished articles of textile and textile made ups and leather and artificial leather shall be entitled to reduced rate of 14 per cent subject to condition they have maintained 4 percent value addition during the last six months.
Further, customers entitled to receive a cash back of up to 5 per cent of the tax involved in the manner and to the extent as may be prescribed.
The penalty for non-compliance by the Tier-1 retailers, the sources said that under sub section (6) of section 8B of the Act, adjustable in put tax for whole of that tax period shall be reduced by 15 percent.
Penalty as prescribed at serial No.(19) of the section 33 of the Act besides default surcharge under section 34 of the Act.
KARACHI: Federal Board of Revenue (FBR) has decided to implement online invoice system with shopping store chains across the country from November 01, 2019.
The point of sale invoicing system is an online real-time system for documentation of sales tax connects the computerized sales system for large retail stores i.e. Tier-1 retailers to FBR’s system through internet.
According to FBR the Tier-1 retailers are:
(a) a retailer operating as a unit of a national or international chain of stores;
(b) a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks;
(c) a retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rupees six hundred thousand; 8[ ]
(d) a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers”; and
(e) a retailer, whose shop measures one thousand square feet in area or more.”;
The FBR said that retailers do not need to purchase any new machines to get linked with this system. “They can get linked by simply downloading an application in their existing machines,” the FBR said.
The revenue body further said that a barcode or QR code automatically gets printed on the invoice generated through a sale by the retailer.
Customers can verify the sales tax payment through the Tax Asaan Application.
The FBR further said that the system helps retailers in automatic preparation of sales tax returns and thereby reducing their expenditure.
The revenue body said that adopting the POS Invoicing System will end periodic inspections by FBR officials. The FBR further said that the system had been running successfully for over a year at 3,824 outlets of 70 famous top textile and leather brands.
The FBR said that from November 01, 2019 the system will be implemented for restaurants in Islamabad and all shopping store chains across the country.