All restaurants and bakeries have been urged by the Federal Revenue Board to integrate the newly introduced POS invoicing system with the tax collector.
The Authority claimed in the FAQs list published by FBR that, in compliance with section 2 of Section 2 of the Sales Tax Act of 1990, all businesses, whether or not manufacturers selling their goods to the general public for sale, are dealers.
“Therefore, bakeries and sweetmeat shops, selling goods to general public are also retailers. Therefore, such bakeries and sweetmeat shops, whether or not manufacturers also, shall be treated as tier-1 retailer if they fall in the definition of tier-1 retailer as in clause (43A) of section 2 and they shall be accordingly required to integrate their POSs,” stated FBR.
Furthermore, all restaurants are mandated to integrate their POSs. Chapter XIV-A of the Sales Tax Rules, 2006 pertains to restaurants, snack bars, cafes etc. “All such establishments, whether or not falling in category of tier-1 retailers, are required to integrate their POSs under the said Chapter,” said FBR.
The new system allows customers to review their tax payments using the Tax Asaan application, FBR told Speaker, the POS System has merged major retail outlets with the FBR system
The tax revenue authority has told retailers that it is not necessary to acquire additional machinery for the use of this program, as they can integrate their system with POS via a FBR website application.
FBR also advised retailers that they will not receive the full input tax credit if they do not include them in the POS system
POS integration is mandatory for all tier-1 retailers irrespective of the items they are dealing in. All tier-1 retailers whether dealing in textile and leather items or any other item are required by law to integrate their POSs with FBR’s system.