Retailer’s POS Integration with FBR

FBR’s extension for POS integration

FBR extended the date for POS integration with FBR’s network up to August 31st, 2020. Retailers willing to integrate have to furnish in writing to respective RTOs/LTUs by August 20th, 2020.

FBR continuously working on it’s systems to enhance the effectiveness of their machinery to achieve high efficiency in documenting the country’s economy and deterring tax evasion. Same as other sector’s in Pakistan, retailer’s (as per tax practices and FBR’s intelligence) were assumed to report much understated sales than in actual to evade sales tax. For this FBR Islamabad had also done some experiments by installing their own POS on the premises of some restaurants and other retailers, results were as expected, due to that FBR last year came up with the idea of integrated POS or real time invoicing systems. This system utilizes cloud technology for real time invoicing, as soon as the retailer enters the invoice through POS, in a glimpse of a second the information will travel to the FBR’s web service and return with a fiscal invoice number and a QR code, through which customer/consumer can verify using FBR’s Tax Asaan application.

POS Invoice

Invoice verification by TAx Aasan

This Real Time Point of Sale (POS) Invoicing System was introduced by the Federal Board of Revenue (FBR) initially for top Textile & Leather brands and was later expanded to Tier-1 retailers which include retail brands across Pakistan.

So, What actually POS Real Time Invoice System is?

Point of Sale (POS) Invoicing System by FBR is an online and real time invoicing system which connects the computerized Sales system of retailers with the Federal Board of Revenue (FBR) through the internet.

POS Invoicing System is the computerized & electronic system installed at different outlets in Pakistan which not only generates invoices for customers but also records sales data, manages inventory and maintains customer data.

By integrating these systems, the sale will not only be recorded in the internal system of the retailer but also at the network of FBR which ensures the collection of Sales Tax.

How To Integrate with FBR’s POS Real Time Invoice System?

FBR have kept the whole process of integration very simple for the ease of retailers as there is no need to purchase new machines or equipment. Rather they can use their existing invoicing system to complete the integration.

The integration can be completed successfully in the following steps:

Login to the official website of FBR using your account details
Select POS Client registration
Provide details such POS Device Number, POS version, Business address, Branch details, City, IP address, Latitude and longitude
Download Software Fiscal Device & Install on your POS Invoicing system.
Register each point of sale at your business by the same process

Steps involved in installation of FBR POS Software:

To successfully integrate with FBR’s POS Real Time invoice system the retailer is required to install the software on all invoicing machines using the following process:

1) Download ‘Software Fiscal Device’ from the official website of FBR and run the software as administrator.

2) Select the ‘Complete’ Setup Type and proceed

3) Select the target folder where you want to save the local files generated by the software and enter POS Registration Number which was generated on e.fbr.gov.pk

5) Click Finish to complete the installation

Following requirements for Software Fiscal Device include:

Windows 7 or above
.Net Frame Work 4.5 or above
Internet Information System

By above measure FBR is confident that they will reduce the risk of sales tax evasion resulting in higher revenue collection. Some retailers have already installed above real time invoicing system by FBR including many international brands having outlets but still many resisting the system.

To encourage this integration of FBR’s network and retailer POS, taxation law provided concessionary sales tax rates on successful integration and penalties up to 1 million rupees on failure of integration. Continuous failure can lead to sealing of business premises with further reduction of input tax claim by 15%.

A quick summary of questions that people often ask;

Who falls under Tier-1 retailer?

Teir-1 retailer are defined by law as follows;

A retailer operating as a unit of national or international chains of stores.
A retailer operating in air-conditioned shopping malls and plaza but excluding kiosks.
A retailer whose electricity bill exceeds 12 hundred thousand in last the 12 months.
A wholesaler-cum-retailer who imports in bulk and supplies on both wholesale and retail basis.
A retailer whose shop measures 1,000 Sq ft. or more.

Do bakeries, milk and sweet shops also fall under tier-1 retailers?

Bakeries, sweet and milk shops sell to the general public (consumers). Therefore if they meet the beside mentioned criteria they do fall under tier-1 and have to install and integrate POS.

Are restaurants also required to integrate POS?

Irrespective, whether restaurants or cafes fall under tier-1 they are required to integrate their POS with FBR’s network.

For any business/tax consultation in Pakistan, UAE and KSA you can write to me through contact me.

HOW TO REGISTER A COMPANY IN PAKISTAN

Cloud Accounting Facility

In today’s world small businesses are evolving at a fast pace and ideas are turning into business models. To achieve high efficiency and achievement of goals technology nowadays plays a vital role.

Ever wonder if you can travel across the world along your business? Well now it’s a dream come true, through cloud technology facility you can have all your business reports at the ease of your palm.

Cloud and Cloud accounting

It is a platform through which we can access softwares online anywhere, anytime and via any device. Using cloud accounting you can have insight of your business daily cash ins and outs without even approaching your accountant or financial advisors. Your information is saved and processed in the cloud from which you and whomever you want (Like Financial advisor, Tax preparer etc.), can view the financial reports with a dashboard view.

How does it works

With the facility of working 24/7 and without being compelled to work from only an office computer, through cloud accounting you can work on your accounts and business financials just by recording proper business transactions accurately.

Unlike conventional accounting software, in cloud accounting you can keep track of your businesses income and expenses just by creating an account on cloud accounting service provider’s platform (Yes as easy as creating a Facebook account).

Setting up your company

After creating your account along with your legal status of business you will set up your company. This is the foremost and important step as many business documents will have the details of the business that you will mention in this step.

Creating Chart of Accounts (COA)

Chart of accounts or listing of accounts are the skeleton of our business accounting. It is the primary stage to set up accounting functions, business reports are based on the design of COA. In cloud accounting software you have a default chart of account design properly to suit different industries, having said that you can always design and import your own chart of account.

Migrating your books

If you are a startup and this is your gestation or first fiscal year then you can skip this step. But if you’re running a business and want to migrate your existing accounting books to cloud accounting software then you can start by importing excel or CSV files (as supported) to the new system. Or you can start by putting opening balances to the new Cloud accounting facility (CAF).

Recording income and expenses

Start by creating invoices to customers for the business and recording invoices from vendors (expenses). You can keep and store a copy of invoices in CAF linked with the respective transaction. Many conventional desktop accounting software do not provides dashboard view but in cloud accounting softwares you can view real time changes on the dashboard comparing the different accounts and most importantly assets comparison with liabilities.

Report settings

For ultimate results and reports you have an option in the CAF to customize as per company and title report as per relevancy. Some CAF providers allow report customization more than others you can titled your report, set fiscal year, clubbing of accounts and much more.

Benefits of Cloud Accounting Facility (CAF)

It is a cost saving solution.
You can access your business dashboard, giving you business insight at any time anyplace.
Collaboration between teams in different parts of the world is as easy as in the same office.
It provides a 100 percent paperless environment (saving earth).
Real time bank reconciliation through direct bank feeds (an advantage that is not available in desktop versions of accounting softwares.
Highly secured with no tension to take backups at periodic ends
No updation is required compared to the traditional accounting softwares. Instead you will always work on the updated version.
You can directly send invoices to your clients after creation and can see if your client has viewed them or not.

App Ecosystem

You can have add-ons as per your need in these accounting softwares, many of them provide third party applications integration and whole market space having hundreds of applications. They get integrated with cloud accounting software, speed up the information flow in the organization and reduce admin tasks to minimal level.

There are countless advantages to move your books on cloud and scale your business by keeping track of business along you.

Some Cloud Accounting Facility Providers are

Xero
QuickBooks online
Sage Business Cloud
Wave accounting
Zoho books

And many more.

Amidst corona virus (COVID19) world is realizing the power of using cloud technology in businesses. Cloud accounting is now more than necessity. If you need any assistance in cloud accounting feel free to write to me.

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To consult about cloud accounting software feel free to contact me.

HOW TO RETRIEVE / RESET FBR (IRIS) ACCOUNT PASSWORD

From the time FBR has introduced electronic method of filling annual Income tax return for the taxpayers a new problem has been experienced by some taxpayers that either taxpayer forget his/her password of FBR (IRIS) account or if their registration is done by their consultant they black mail them either by increasing invoice or retaining them by saying that they do not have any separate account instead they file their returns through consultant’s intermediary account which is highly unethical and non-professional.

For salary and business individuals FBR has eased the registration and password retrieval procedure, while sitting at your office desk or at the ease of drawing room you can reset your ID password for FBR (IRIS) account.

Essentials for retrieving password;

Cell number at which your account is registered (the one you provided to you consultant for registration purpose)
Email address at which your account is registered

Step 1 – Go to the link IRIS login screen https://iris.fbr.gov.pk/public/txplogin.xhtml

Step 2 – Click the “Forgot password” option below

Step 3 – Now a new dialogue box will appear before you fill in the details required

Step 4 – After filling the required information in the above dialogue box click the submit button and wait for the six digit verification code from FBR, the code will be send to both your cell number and email address.

Note here that if you do not receive code within one minute as per the guidance give in the dialogue box type “msg” and send a text message to 9966.

Step 4 – After filling the 6 digit code that you received on your cell number and email click the “verify” button and you will have “New password” dialogue box appeared before you.

Note here that keep your new password alpha numeric and with lower and upper case letters e.g. Abc#1 it will be more safe and easy to remember.

With this you have reset your password for FBR (IRIS) account without any hassle. Do not let any consultant black mail you for this and always keep your ID and password for all FBR account with yourself as well and try to access your FBR account time to time.

If in case you have forgotten which email address and cell number were used, IRIS provide cheats at the top on the right hand corner where you can find out the email and number which were used at the time of registration.

If you don’t recognise the provided cheat as your email or cell number (may be because your consultant or the person registered you on FBR, used self created email or cell number). Even than you don’t have to worry just go to nearest RTO with your original CNIC and at the help desk the representative of RTO (FBR) will reset your password on you new provided email and number.

HOW TO REGISTER A COMPANY IN PAKISTAN

Financial Statement

Financial statements are set of records of business activities and its position, It is presented in formal and understandable form. There are five financial statements.

Statement of profit and loss and other comprehensive income (for the period, usually a year)
Statement of financial position (SOFP) or Balance Sheet
Statement of cash flows (for the period, usually a year)
Statement of changes in equity (SOICE)
Notes to the accounts / disclosures