In a bid to enhance tax compliance and broaden the tax base, the Federal Board of Revenue (FBR) has announced a significant documentation initiative, directing various profit-earning entities, retailers, professionals, and service providers to electronically integrate with the FBR system and register all their points of sale (POS) by July 1, 2024.
Previously, only larger retailers were mandated to integrate with the FBR’s POS system. However, the recent directive now encompasses numerous professional service providers, healthcare professionals, and a variety of retailers, including manufacturer-cum-retailers, wholesaler-cum-retailers, and importer-cum-retailers.
Under the revised guidelines outlined in SRO.428 (I)/2024, issued by the FBR, entities such as foreign exchange dealers, private educational institutions, healthcare facilities, restaurants, courier services, beauty parlors, and various other service providers are required to integrate their POS systems with the FBR’s platform.
According to the FBR, integrated enterprises must ensure that all payment counters, including each outlet’s point of sale, are available for the installation of the designated systems. These businesses are obligated to install approved fiscal electronic devices and software as specified by the Board.
Moreover, entities intending to conduct business activities are required to notify the Board through the Computerized System and register each point of sale to activate integration.
Furthermore, SRO.428 (I)/2024 outlines the licensing process for integrators seeking to supply electronic fiscal devices and software, mandating them to obtain a license from the Board.
The integration requirement extends to a wide array of sectors, including healthcare providers such as dentists, physiotherapists, and medical diagnostic laboratories, along with educational institutions, hospitality establishments, fitness centers, event management services, and retailers engaged in various business activities.
However, the FBR has also provided details regarding exclusions where integration with the FBR system would not be necessary under the aforementioned regulation.
The move by the FBR reflects its commitment to modernizing tax administration and promoting transparency in financial transactions, thereby bolstering revenue collection efforts and fostering a culture of compliance among taxpayers and service providers alike.
