ISLAMABAD: Federal Board of Revenue (FBR) notified amended rules for integration of electronic invoicing and licensing for sales tax registered persons.
The FBR amended Sales Tax Rules, 2002 through SRO 1788(I)/2023 dated December 11, 2023.
According to the revised Sales Tax Rules, 2002, no individual or entity, including tier-I retailers, can proceed with the integration of registered persons through software unless they obtain a license under the new rules. The FBR’s decision aims to enhance transparency and efficiency in the sales tax system by ensuring that all integrations adhere to a standardized and regulated process.
The FBR stipulated that every payment counter, whether fixed or portable, generating invoices for payments in cash or through debit or credit cards, must be integrated with the Board through a system accredited and licensed by the FBR. This move aligns with the FBR’s objective of establishing a seamless and technologically advanced system for tracking and managing sales tax transactions.
To streamline the licensing process, the FBR will establish a licensing committee responsible for evaluating and approving applications. The committee, led by Member Digital Initiatives as the convener, will function in accordance with the prescribed rules and any additional instructions or procedures issued by the Board.
For a license application to be considered, it must be accompanied by a comprehensive profile of the company, details about managerial and technical personnel, information about the company’s capacity for development and integration with enterprise resource planning systems and payment processing systems, and other relevant documents.
The licensing committee will carefully review each application, recommending or rejecting it within fifteen days of submission and providing specific reasons for their decision. Approved licenses will be granted with the final approval of Member Digital Initiatives, and the list of licensees will be published by the committee.
Additionally, the licensing committee will play a crucial role in evaluating license renewals, ensuring that companies continue to meet the necessary criteria for integration and contribute to the efficiency of the sales tax system.
These amendments represent a proactive step by the FBR to create a more transparent, accountable, and technologically advanced environment for sales tax integration. By setting clear guidelines and requirements, the FBR aims to enhance the overall efficiency of the sales tax system and contribute to the broader goal of economic development in Pakistan.
