ISLAMABAD: The Federal Board of Revenue (FBR) has made mandatory for all mega chain stores, shopping malls, restaurants, cafes, coffee shops, eateries, snack bars and hotels to install Electronic Device System with effect from December 1, 2019.
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The computerised software of the FBR will be connected with cash machines and the customers will be able to check whether its paid tax amount was deposited in FBR or not. The point of sale (POS) will be connected with the FBR through this new software Electronic Device System (EDS).
“Yes, we have issued rules to amend sales tax rules 2006 aimed at installing Electronic Device System at 20,000 chain stores, shopping malls and others at point of sale to bring them into tax net till June 30, 2020. This new system will become applicable with effect from December 1, 2019. Then we will go to bring hospitals and laboratories into this system,” the FBR’s Member Policy and Spokesman Dr Hamid Ateeq Sarwar confirmed to The News here on Thursday.
Commencing from the December 1, 2019, all Tier-I retailers shall integrate their retail outlets with Board's computerised system for real-time reporting of sales, in the mode and manner, as prescribed.
The supplies of finished fabric and locally manufactured finished articles of textile and textile made-ups and leather and artificial leather shall be entitled to the reduced rate subject to conditions. The retail supplies of these items shall be subject to standard rate as prescribed if they are made from retail outlets, which are not integrated in the manner prescribed by the FBR.
The integrated supplier who is found to have tampered with the system would no more be eligible for the reduced rate, if otherwise applicable, and his input tax shall also be reduced, FBR added.
The FBR introduced ‘Electronic Invoice System’ for all mega stores and coffee shops located in mega malls and directed them to install electronic device/software and register all their branches and each point of sale (POS) with the FBR’s computerised system.
The FBR has issued a notification here on Thursday to amend sales tax rules 2006. The Board directed all ‘Tier-I’ category of retailers to integrate their retail outlets with Board's computerised system for real-time reporting of their sales.
Tier-1 retailers cover 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 centre, excluding kiosks; a retailer whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds Rs600,000; a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general body of the consumers and a retailer, whose shop measures 1000 square feet in area or more.
Under the Electronic Invoice System, the registered person specified in rule 150ZA shall install such fiscal electronic device and software, as approved by the Board, available on its website with complete technical instructions for installation, configuration and integration. The rule 150ZA is applicable to registered persons being restaurants, cafes, coffee shops, eateries, snack bars and hotels having any of such business activities for the purpose of monitoring or tracking of taxable activities by electronic or other means.
The provisions of rules 150ZEB, 150ZEC and 150ZEG shall also apply to the sales made from each of the registered branches in respect of recording of sales; components and features of electronic fiscal device (EFD); functionalities of POS; transmission of sale invoice data to the Board; printing and contents of sale invoice including printing of QR code and FBR fiscal invoice number thereon; population of transmitted data in Annex-C of the return of relevant month; bearing of cost of equipment and integration thereof; display of FBR logo and the banner text; recording and transmission of online sales including those made through social media-sites; accreditation of POS system and reporting of failure of registered person to transfer sale data by the customer.
