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

Becoming active taxpayer after filling late

“Want to be in Active Taxpayer’s List for TY 2018”

Or

“you already filled but not showing Active in ATL”

Tax year 2019 (July 01, 2018 to June 30, 2019) has just ended on June 30^th, 2019. Where company accountants and tax consultants would be busy in compiling and classifying transactions for the preparations of annual income tax returns there, some taxpayers and citizens would still be looking for registering and filling returns for Tax year (TY) 2018. Despite the fact that FBR had extended filling dates for tax year 2018 till August 9^th, 2019, yet only 2.5 million taxpayers in Pakistan have filled their annual income tax returns for 2018.

After extending dates many a time through multiple extension letters now FBR has decided not to extend date anymore for tax year 2018 and this created panic situation for late fillers who intend to file for TY 2018 and who has already filled but after August 9^th, 2019 due to which they aren’t been included in Active Taxpayer’s List (ATL).

“You can still be active on ATL for 2018”

As FBR is striving for increasing tax base together with facilitating taxpayers. Recently FBR issued amendment in the Ordinance through which you can still be in ATL as active taxpayer by just submitting return along with a surcharge mentioned in the Ordinance.

Sr. No.

Taxpayer’s Status

Surcharge Amount

1	Individual	Rs. 1,000
2	AOP / Partnerships	Rs. 10,000
3	Company	Rs. 20,000

With the above mentioned surcharge you can be included in the ATL as soon as the challan is submitted.

Common questions that I’m being asked regarding being active on ATL are summarized below;

Q. How to submit challan with late filling?

A. Just submit your return as normally you do and after submission of return pay the surcharge amount as per your taxpayer status through generated PSID.

Q. If someone already submitted his/her return how he will submit challan along return?

A. If return is already submitted after the due date, than you just need to submit the challan as per your taxpayer status and as soon as challan is submitted you will be included in the ATL.

Below is the PSID as an example for readers and potential fillers.

Example ATL late fillers PSID — Example PSID

For any business/tax consultation you can write to me through contact me.

HOW TO REGISTER A COMPANY IN PAKISTAN

Tax Refunds and Phishing Fraud

“Dear Taxpayer,

You have been approved an income tax refund of Rs. 15,490/-, the amount will be credited to your account shortly. Please verify your account number 5XXXXXXX6755. If this is not correct, please update your bank account information by visiting the link below. https:// bit. Ly /3535wpyhalK87”

The above email is not from the FBR authority but it’s too late if you already clicked the provided link in the email and provided your true personal and financial information.

In the uproar and fear of taxes and accountability by Federal Board of Revenue (FBR) on the non-filling of returns, keeping benami assets (doing benami transactions) and tax evasions. Phishers are active in tricking and trapping tax payers and fillers. Although emails and mobile messages for notices, penalties and tax refunds scams are not new, it is trapping taxpayers since FBR has eased the return filling procedure and launched IRIS portal. It’s amplitude in the last two months has increased and many tax payers fallen in this trap. These emails request your personal and financial information by luring you in the name of tax refunds or scaring you by possible imposition of tax penalty.

IRIS Inbox First of all, ‘’Never expect a tax refund message by FBR, FBR hasn’t and till date has no SOP to communicate tax refunds by mobile messages or emails”. Now coming on the emails, FBR do send emails registered for your accounts on IRIS portal and just communicate if you have received any notice in the inbox of your IRIS account, just to be sure that taxpayer is notified that he has received a notice from FBR, even full text is not shared on email and taxpayer must view his inbox on IRIS portal to read what is about.

Phishing is not new, remember “Jeeto Pakistan WhatsApp messages” of congratulating recipient for winning gold just to obtain recipient personal and banking information and login credentials. It is very important for recipients of such messages and email, without getting excited or panic just verify such messages from the authority or organization it is mentioning.

Tips for identifying and avoiding being preyed of phisher and phishing emails.

Number and Email address
- Phishing emails and messages do not have proper or inconsistent email address. Albeit they keep email address to imitate original organization but if they are keenly observed then one can identify them.
They will not specifically address you
- Instead they will use general greetings and will address with “Dear Taxpayers”, “Dear Sir/Ma’am” or “Dear Recipient”.
Compare the email address with the actual website domain of the organization.
- Remember FBR has domain of “fbr.gov.pk” and FBR do not use any other address.
Never click on any link provided in the Email
- FBR will never ask you to click any link neither will ask you to provide your login credentials of any account whether it be IRIS or you bank account.
Consult an advisor or consultant
- They have awareness of the changes and recent developments in the industry.