Federal Board of Revenue (FBR) has reminded all tier-I retailers to integrate with its Point of Sale (Linked Invoicing System) before the deadline i.e. 31st August 2020.
FBR has explained that all retailers who have a network of chain stores in Pakistan, are located in air-conditioned big shopping malls or plazas, have a cumulative electricity bill during the immediately preceding twelve consecutive months exceeding Rs. 1.2 million, are engaged in bulk import and supply of consumer good on a wholesale basis to the retailers as well as on retail basis, and their shop’s size measures one thousand square feet in area or more, must integrate their retail outlets with FBR’s computerized system for real-time reporting of sales.
FBR has warned that the last date for such integration is 31st August 2020 and those who fail to integrate would be imposed a penalty of up to Rs. 1 million and if the offense continues, the business premises of such a retailer shall be sealed.
During the last month, FBR extended the date for the integration of point-of-sale (POS) systems at retail outlets up to August 31 and asked retailers to avail a reduced rate of 12 percent announced in the federal budget. The concept of POS integration was introduced in order to monitor sales of retailers and check sales tax evasion.
The board has already warned to take harsh action against individuals who avoid linking their system with the FBR despite having the prescribed setup. Under the tax laws, if a retailer refuses to comply then they would face a penalty of up to Rs. 500,000 or 200 percent of the tax amount involved, whichever is higher. The retailer might also be sentenced to imprisonment, which may be extended to two years.
The federal government in annual budget 2020-21 had set the target of connecting 15,000 retailers of the tier-1 category with the Point of Sale (POS) software in the current fiscal year.
