Service charge

Tier 1 Retailer Invoices: FBR Specifies Re1 Service Fee Usage

ISLAMABAD: The Federal Board of Revenue (FBR) will use a nominal service charge – @ Re1 per invoice to promote the integration of all Tier 1 retailers, launch an advertising campaign and fund a special pricing program for all customers.

The FBR announced that the nominal service charge @Re1 per invoice, however named, would be collected by T-1 retailers from their customers under Section 76 of the Sales Tax Act of 1990 .

On Saturday, the Federal Board of Revenue (FBR) strongly refuted the malicious misinformation campaign being circulated on social media against Re1’s proposed service charge @ to be collected on all invoices issued by electronically integrated Tier 1 retailers. of FBR. real-time sales reporting.

It is insinuated that the service charge rate was one percent instead of one rupee per bill only.

This is completely baseless and false.

The nominal service charge @ Re1 per invoice of any denomination, would be levied under Section 76 of the Sales Tax Act 1990 and used to promote the integration of all Tier 1 retailers, launch an advertising campaign and fund a special pricing program for all customers who duly check their invoices to determine the validity and authenticity of invoices issued by Tier 1 integrated retailers, the FBR added.

The malicious campaign appears to have been launched by interest groups that oppose outlet integration and those that continue to collect sales tax from the general public but do not deposit it with the state treasury.

POS service fee: T-1 retailers must collect Re1 per invoice: FBR

The FBR reaffirmed its determination to continue to vigorously integrate Tier 1 retailers across the country, the FBR added.

Last month, the FBR had issued instructions regarding the operationalization of SRO 1006(1)/2021 dated August 9, 2021.

The FBR said a standardized sales tax invoice format has been released detailing the “minimum requirements” of the sales tax invoice.

It is advised that the “Invoice Number” at the top of the standardized invoice is the “unique sequential invoice number” pursuant to Subrule (5) of Rule 150 ZEB of the Sales Tax Rules 2006 and will describe the Tier 1 retailer’s own sequential invoice number.

The FBR invoice number must be the 18-digit FBR tax invoice number in accordance with subrule (6) of Rule 150 ZEB of the Sales Tax Rules, 2006.

The FBR had issued an SRO 1006(I)/2021 to issue a standardized format of invoices for integrated retailers/suppliers.

According to SRO 1006(I)/2021, the name must be registered when the customer owes the tax or credit or the invoice value is more than Rs 100,000.

Re1’s POS service charge per invoice must be collected by the T-1 retailer from the customer and must be filed with the monthly sales tax return, which is amended to include a line for “POS service charge”.

Delegated tax authorities in major outlets to monitor sales

This line will be populated automatically by the system based on invoices generated and recorded in the school board’s computerized system.

POS service fees collected each month will be deposited by the T-1 retailer into a separate account, the FBR said.

Under Rule 150ZEB of the Sales Tax Rules 2006, Registrants (Integrated Suppliers) must install the Tax Electronic Device and Software, as approved by the Board, available on its website with technical instructions complete for installation, configuration and integration.

Integrated providers must notify the board through the computerized system of all their outlets and the integrated provider must register each outlet to activate the integration.

As part of the standardized format for invoices, the following information, among others, must be clearly printed on each invoice issued through all PoS systems integrated with FBR, namely: (A) Commercial information; (B) Invoice Details; (C) Transaction Details; and (D) FBR details.

Copyright Business Recorder, 2021