ISLAMABAD: Federal Board of Revenue (FBR) issued procedure for cash back five percent sales tax to customers, which is paid at the time of payment to Tier-1 retailers.
The FBR issued SRO 1339(I)/2020 dated December 16, 2020 to make amendment in Sales Tax Rules, 2006.
Following is the procedure for payment of five percent sales tax paid on purchases made by customers of Tier-1 retailers:
(1) All customers of Tier-1 retailers are entitled to redeem 5 percent of the sales tax paid as cash back on eligible goods of the tax amount as inscribed on the invoice issued by the Teir-1 retailers.
(2) To redeem under sub-rule (1) the cash online, the customer shall log on to the mobile application.
(3) Soon after log on under sub-rule (2), an independent FBR wallet account shall be created for each customer.
(4) Approved outlet shall also create an independence FBR wallet account for each customer.
(5) An identical FBR wallet account shall be created for each point of sale by the approved outlet.
(6) The customer shall verify the electronically generated invoice through the mobile application.
(7) As soon as the electronically generated invoice is verified, the system shall automatically calculate the 5 percent amount of the tax paid on the invoice.
(8) The customer shall transfer the amount determined under sub-rule (7) into his FBR wallet account.
(9) The customer may redeem the earned amount within one month of his purchases accumulated in his FBR wallet account on any approved outlet who shall refund the amount accumulated in the wallet account of the customer after ensuring that the earned amount is transferred from the customer’s wallet account to the approved outlets wallet account.
(10) The approved outlet shall adjust the amount so refunded to the customer which shall be automatically uploaded from the approved outlet’s wallet account to the sales tax return of the approved outlet for the relevant tax period by auto adjusting the output tax liability.
