The Federal Board of Revenue (FBR) has initiated the SWAPS Rules 2023 to streamline the collection of information regarding provincial sales tax deducted or paid.
According to the new rules, withholding agents are now mandated to issue the SWAPS Payment Receipt (SPR) during the withholding or deduction of taxes.
The SWAPS Payment Receipt serves as evidence of payment for transactions facilitated by SWAPS agents.
Under the rules, SWAPS agents, i.e., withholding agents, are required to install and integrate approved fiscal electronic devices and software for conducting transactions subject to withholding tax.
The detailed particulars to be included in the SWAPS Payment Receipt (SPR) as prescribed by the Board encompass SWAPS-ID and SPR number, name, address, NTN, and STRN of SWAPS Agent and the supplier, quantity, and description of goods or services, details of partial payments (if applicable), vendor number, digital invoice number of the withholdee, total transaction amount, withholding income tax details, sales tax information, Federal Excise Duty (FED) details, provincial sales tax particulars, and any other data field specified by the Board.
FBR emphasizes that the SWAPS Payment Receipt (SPR) is the exclusive proof of tax collection or deduction, including for purposes of claiming a refund or tax credit.
This move is anticipated to enhance transparency and efficiency in the provincial sales tax collection process, ensuring compliance with the newly introduced SWAPS Rules 2023.
