FBR orders installation of electronic devices at chain stores, shopping malls, restaurants

The devices will have a computerized software of FBR which will be attached to cash machines, and the customers will be able to check whether or not the tax amount was paid to FBR.

fbr

The Federal Board of Revenue (FBR) has ordered for installation of Electronic Device System at all big chain stores, shopping malls, restaurants, cafes, coffee shops, eateries, snack bars and hotels from 1st December 2019.

The devices will have a computerized software of FBR which will be attached to cash machines, and the customers will be able to check whether or not the tax amount was paid to FBR. The POS (Point Of Sale) will be connected directly to FBR through this system.

“Yes, we have issued rules to amend sales tax rules 2006 aimed at installing Electronic Device System at 20,000 chain stores, shopping malls and others at the point of sale to bring them into tax net till June 30, 2020. This new system will become applicable with effect from December 1, 2019. Then we will go to bring hospitals and laboratories into this system,” – said Dr. Hamid Ateeq Sarwar, the FBR’s Member Policy and Spokesman, while speaking to media.

Starting from 1st December, all Tier-I retailers shall update their retail outlets with the computerized system for real-time reporting of sales, in the prescribed manner.

Rates of the finished fabric and locally manufactured finished articles of textile and textile made-ups and leather and artificial leather will be reduced, due to the conditions. The retail supplies of the goods shall be in order with the standard rate as prescribed if they are made from retail outlets, which aren’t integrated in the manner prescribed by FBR.

Anyone who meddles with the system will not be eligible for the reduced rate, if applicable any other way, and input tax shall be decreased, as per FBR.

FBR introduced the ‘Electronic Invoice System’ for all megastores and coffee shops in malls and ordered them to install electronic device/software and register their POS with FBR’s computerized system.

FBR issues a notification to amend the sales tax rules 2006:

On Thursday, FBR issued a notification to amend the sales tax rules 2006. The board directed all ‘Tier-I’ category retailers to make its computerized system a part of their retail outlets for real-time reporting of the sales they make.

Tier-I retailers include a retailer working as a unit of a national or international store chain, retailer working in an air-conditioned shopping mall, plaza or center, excluding booths, etc., a retailer whose electricity bill during 12 consecutive months is more than Rs. 600,000, wholesaler-cum-retailer, having bulk in imports and supplying consumer goods on a wholesale basis to retailers as well as on retail basis to general consumers and a retailer whose shop is located at 1000 square feet area or more.

Under this system, the registered person, defined in rule 150ZA, shall install the electronic device and software, as approved by FBR. The detail is available on its website with complete instructions for integration, configuration, and installation.

Rule 150ZA is applicable to any registered persons being cafes, eateries, snack bars, and hotels etc. having any business of this nature, for tracking and monitoring taxable activities.

Rules 150ZEB, 150ZEC, and 150ZEB shall be applied to sales made from each registered branch for recording sales, components and features of FED, and functionalities of POS, etc.

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