The Federal Board of Revenue (FBR) has introduced a mandate for integrated suppliers to declare all their outlets using the computerized system. Additionally, each point of sale (POS) must be registered to activate the integration, as per the recently issued SRO 1775(I)/2023 amending the Sales Tax Rules, 2006.
The FBR's electronic sales tax (e-ST) integration system, initially applicable to Tier-I retailers, is expanding to encompass more registered entities beyond this category.
As per the updated regulations, integrated suppliers are required to notify the Board through the computerized system about their outlets (referred to as notified outlets). Each point of sale (POS) must undergo registration for integration activation.
Details to be submitted by integrated suppliers include the POS registration number, business and branch names, addresses, POS identification number, registration date, and the name along with the National Tax Number (NTN) of the POS solution provider. Additionally, the names and CNICs of the proprietors or directors of the solution provider need to be provided.
The directive also emphasizes that integrated suppliers are prohibited from issuing temporary or draft invoices through the POS system. In cases of sales return or exchange, a proper debit or credit note referring to the original invoice must be generated through the system, explicitly stating the refunded or additionally charged amounts, including the associated sales tax. The FBR has specified that no sales return or exchange will be processed without referencing the original invoice.
