FBR Yet to Fully Implement National Sales Tax Return

Provincial revenue authorities and boards have advised their taxpayers/service providers to continue to file provincial sales tax returns till the Federal Board of Revenue (FBR) fully implements the National Sales Tax Return.

In this regard, the provincial revenue authorities/boards have issued messages to their taxpayers for not filing the FBR’s National Sales Tax Return.

On January 7, 2022, former Finance Minister Shaukat Tarin launched the National Sales Tax Return for all federal and provincial sales taxpayers with the resolve that it would promote standardization of taxability and tax rates and automatic input credit and refunds.

The FBR claimed that the launch of National Sales Tax Return will minimize data entry, eliminate fake/flying invoicing and will encourage harmonization of tax procedures, definitions, and principles between the federal government and the provinces. Taxpayers were required to file separate sales tax returns every month to each of the different collecting authorities where they conducted business, which was causing them hardship and increased compliance costs.

However, the messages of the provincial revenue authorities and boards to the service providers operating in their respective jurisdictions indicate that the FBR has yet not been able to enforce the said single return.

Tax experts have also raised concerns over the single sales tax return form which is still complicated for the federal and provincial sales tax registered persons.

Later, the Federal Board of Revenue (FBR) constituted a committee comprising provincial revenue authorities/boards to resolve issues of the national sales tax return for federal and provincial taxpayers across the country.

According to a message of the Sindh Revenue Board (SRB) to the taxpayers, the FBR has developed a National Sales Tax Return which is in the process of implementation. As agreed by FBR, this return is only applicable to FBR registered persons at this stage. FBR is in the process of consultation with the provinces for an extension of the National Sales Tax Return to the provinces.

In view of the above, in order to avoid any problem, all persons registered with SRB have been requested to continue filing their Sindh sales tax returns in the form SST-03 on the SRB portal in accordance with the provisions of the Sindh Sales Tax on Services Act, 2011, and the rules made thereunder.

SRB said that it will advise SRB-registered persons when Single National Sales tax Return is fully developed by FBR/ PRAL in consultation with the provinces and after proper user acceptance tests are carried out.

Any departure from the above advice may entail contravention proceedings by officers of SRB for non-filing of the prescribed return with SRB, which may lead to the imposition of penalty and other related consequences, SRB added.

According to the Punjab Revenue Authority (PRA) message to the taxpayers, the FBR has developed a National Sales Tax Return which is in the process of implementation. As agreed by FBR, this return is only applicable to FBR registered persons at this stage. FBR is in the process of consultation with the provinces for an extension of the National Sales Tax Return to the Provinces.

In view of the above, in order to avoid any problem, all persons registered with PRA are requested to continue filing their Punjab sales tax returns in the form on the PRA portal in accordance with the provisions of the Punjab Sales Tax on Services Act, 2012, and the rules made thereunder.

PRA said that it will advise PRA-registered persons when Single National Sales Tax Return is fully developed by FBR/ PRAL in consultation with the provinces and after proper user acceptance tests are carried out.

Any departure from the above advice may entail contravention proceedings by officers of PRA for non-filing of the prescribed return with PRA, which may lead to the imposition of a penalty and other related consequences.



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