Points of sale: FBR required to verify authenticity of PoS software



ISLAMABAD: The Federal Board of Revenue (FBR) is responsible for verifying the authenticity of point of sale (PoS) software provided by authorized vendors to Level I retailers integrated with FBR.

Sources told Business Recorder on Thursday that all 46 third-party vendors were allowed to install the point-of-sale system in points of sale.

However, the RBF must verify the functioning and authenticity of the point of sale system installed in the points of sale.

In the past, the FBR had published a list of suppliers, who provided point of sale (POS) software to these retailers, who integrated their POS software with the FBR.

The RBF Point of Sale Software Vendor List revealed the names and contacts of 46 vendors operating in Karachi, Lahore, Rawalpindi and Islamabad.

According to sources, there are apprehensions of collusion between the seller and the retailer to conceal point-of-sale sales in the absence of a foolproof mechanism to verify the authenticity of the installed software.

1,136 large retailers to be integrated into the point of sale system by 10

If a supplier installs software that may show less sales tax or half the sales tax or conceal total sales, whether the FBR has verified the installed software with the help of Pakistan Revenue Automation Limited (PRAL) or from any other department. In the event of collusion between the seller and the retailer, what system is in place to verify the operation of the installed software, the experts added.

The RBF would deny a 60 percent input tax credit for non-integration. The board has decided to increase the sales tax demand against these large (Tier-1) retailers, which are still not integrated with the RBF point-of-sale system by the deadline.

According to the RBF, in order to operationalize this important provision of the law, a systems approach was adopted whereby all Level I retailers likely to integrate but not yet integrated, as of July-2021 (tax returns of sale filed in August 2021) are to be processed according to the procedure provided for by STGO n ° 1 of 2022 issued on August 3, 2021.

The list of non-integrated Level 1 retailers will be updated monthly on the RBF website and anyone who does not integrate with the point of sale software by the 15th of each month will be denied an entry adjustment of 60 percent.

The FBR has decided to update the list on the 5th of each month and to give them the opportunity to inform the Commissioner concerned that they are not eligible to declare themselves as Level 1 retailers; otherwise, they will not be allowed to make a 60 percent entry adjustment if not integrated with the POS software.

If, however, a Level 1 retailer considers that it is not a Level 1 retailer within the meaning of Section 2 (43A) of the Sales Tax Act 1990, it may be excluded from the list. by addressing the commissioner.

A list of identified Level 1 non-integrated retailers has been placed on the RBF web portal.

Copyright Business Recorder, 2021


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