FBR Warns Un-Registered Retailers to Integrate with POS System

The Federal Board of Revenue (FBR) has released a list of 81 unregistered retailers (Tier-1), who are required to be integrated with its Point of Sale (POS) system by September 10, 2022. In this regard, the FBR has issued Sales Tax General Order (STGO) 3 of 2022, on Thursday. According to the FBR’s notification, these 81 identified retailers are still operating out of the documented regime and not depositing collected sales tax from consumers into the national kitty. In August, the FBR issued a list of 114 big retailers (Tier-1) which were required to be integrated with the FBR’s POS system and were denied 60 percent input tax credit in case of non-integration. However, the number of big retailers (Tier-1) required to be integrated with the POS system now stands at 81. FBR has decided to raise sales tax demand against these big retailers (Tier-1), who are still not integrated with its POS system by the deadline of September 10, 2022. It warned the non-integrated Tier-I retailers that upon filing the sales tax return for September 2022, their input tax claim would be disallowed. The FBR’s notification also stated that to operationalize this important provision of law, a system-based approach has been adopted whereby all Tier-I retailers are required to be integrated with the FBR. The procedure of exclusion from this list of identified Tier-I shall apply as laid down in STGO 17 of 2022 dated 13th May 2022, FBR’s notification added.