Failure to integrate with POS software: Penalty for Tier-1 retailers

ISLAMABAD: The FBR has disallowed 60 percent input tax adjustments for those Tier-1 retailers who will not integrate with the Point of Sale (POS) software with effect from August 1, 2021.

The list of non-integrated Tier-1 retailers will be updated monthly on the FBR’s website and all those will be disallowed 60 percent input adjustment who will not integrate themselves with the POS software till 15th of every month.

The FBR has updated the list of 6,773 Tier-1 retailers across the country not integrated with the POS software. The FBR has decided to update the list on 5th of every month and give them an opportunity to apprise concerned commissioner that they are not eligible to be declared as Tier-1 retailers. Otherwise, they will be disallowed 60 percent input adjustment in case of not integrating with the POS software.

According to Sales Tax General Order (STGO), the FBR in its drive across the country issued STGO No-1 of 2022 by which a system-based approach is being adopted to integrate non-integrated Tier-1 with retailers with effect from August 1, 2021. A list of identified Tier-1 retailers has been placed at the FBR’s web portal.

If, however, a Tier-1 retailer feels that it is not a Tier-1 retailer in terms of Section 2 (43A) of Sales Tax Act 1990, it may get itself excluded from the list by applying to the commissioner by August 10, 2021.