FBR Extends Deadline for Online Sales Tax Integration for Retailers

In order to facilitate major retailers, the Federal Board of Revenue (FBR) has extended the date for the online integration of tier-1 retailers’ point of sale (POS) with the board’s computerized system for real-time reporting of their sales.

The deadline has been extended up to June 30, 2020. The latest date extension has been granted considering the situation as the lockdown has adversely impacted economic activities.

According to the FBR’s notification, in the exercise of the powers conferred under Section 74 of the Sales Tax Act 1990, the FBR has further condoned the time limit as provided in sub-rule (2) of rule 150ZEA of Sales Tax Rules 2006, up to June 30, 2020, for online integration of tier-1 retailers’ POSs with the board’s computerized system for real-time reporting of sales subject to the condition that such tier-1 retailers furnish in writing their willingness to integrate all their POSs in terms of aforesaid rules to the respective RTOs/LTUs by 20th June 2020, the FBR added.

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However, such retailers are required to submit their intentions for integration to the FBR by June 20, 2020. Previously, the last date for integrating the POS for Tier-1 retailers was April 30, 2020.

All tier-1 retailers are required to integrate all their POSs with FBR’s computerized system.

The FBR has already allowed Tier-1 retailers who have integrated all their POSs with the Board’s system to adjust input tax to the extent of 95 percent of the output tax for the tax period.

These retailers have been allowed to adjust input tax to the extent of 95 percent of the output tax for the tax period and the excess amount shall be carried forward to the next tax period.

Tier-1 retailer is defined in section 2(43A) of the Sales Tax Act, 1990, to be a person who falls in any of the following categories:

  • 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 center, excluding kiosks,
  • A retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds Rs. 1.2 million,
  • A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on a wholesale basis to the retailers as well as on a retail basis to the general body of the consumers,
  • A retailer, whose shop measures 1000 square feet in area or more.



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