POS Integration for Tier 1 Retailers by FBR
All tier-1 retailers are requiring to integrate all their POSs with FBR’s computerized system. Because it is become mandatory by the Federal Board of Revenue (F.B.R) for live reporting of sales. Following is the classification summarize by ProTaxConsultancy Pakistan from Sales Tax Act, 1990 of some basic questions of retailers to understand the concept and its implementation:
Who is Required to POS Integrated ?
All Tier-1 retailers as categories below:
A retailer, but 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 Rupees twelve hundred thousand;
A wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on a wholesale basis to the retailers as well as on retail basis to the general body of the consumers”;
A retailer, whose shop measures one thousand square feet in area or more, and Any other person or class of persons as prescribed by the Board.
Furthermore, The Scope of the Taxation Services Includes:
- DIRECT TAX
- INDIRECT TAX
- TRANSFER PRICING
What Will be the Rate of Sales Tax for Items Sold by the Integrated Retailers?
The sales tax rate for items sold by POS integrated retailers shall be the same as for all other suppliers as provided under the Sales Tax Act, 1990. Because the only exception is for locally manufacturing
textile and leather items, which, if sold by integrated retailers, are subject to a concessionary rate of 14%, and if sold by any other supplier, are subject to 17% standard sales tax.
How Returns and Exchanges are Handle in the POS Integrated System?
The software employed by the retailer should be able to handle returns and exchanges. Such software makes the necessary adjustment to sales revenue, reflecting sales reported to FBR. So if such returns and exchanges are not properly reflecting, the retailer can use debit/credit notes and record the same in Annex-I of the monthly sales tax return.
ProTaxConsultancy Pakistan can Reduce or Eliminate your Burden by Providing
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- ProTaxConsultancy Pakistan assist you in Income Tax Registration (issuance of FBR NTN)
- We provide you assistance in Sales Tax Registration (issuance of STRN / GST)
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