POS customers to pay Re1 for each invoice: FBR

KARACHI: The tax authorities, to the surprise of the customers, has made it mandatory to pay Re1 on each invoice obtained against the purchase through the Point of Sale (POS) machines installed by the Tier-1 retailers.

Obtaining a POS invoice and getting verified is necessary for a customer to qualify a prize scheme announced by the Federal Board of Revenue.

“The POS service fee of Re1/invoice shall be collected by the Tier-1 retailers from the customers and shall be deposited along with the monthly sales tax return,” the FBR said.

The POS service fee collected each month would be deposited by the Tier-1 retailers in a separate head of account, it added.

The FBR issued instructions to operationalise the guidelines issued through SRO 1006(I)/2001 dated August 9, 2021.

Through another SRO 1005(I)/2021, the revenue board issued a procedure for the prize scheme. Under this, the customers of integrated Tier-1 retailers, whose names and computerised national identity cards (CNICs), notified through a random computerised draw, would be entitled to prize in respect of their purchases from the Tier-1 retailers.

As per the Sales Tax Act, 1990, the Tier-1 retailers are those operating as a unit of a national or international chain of stores; a retailer operating in an air-conditioned shopping mall, plaza or centre, excluding kiosks; a retailer whose cumulative electricity bill during the immediately preceding 12 consecutive months exceeds Rs1.2 million; a wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers, as well as on the retail basis to the general body of the consumers; a retailer, whose shop measures 1,000 square-feet in area or more or 2,000 square-feet in area or more in the case of retailer of furniture; and a retailer who has acquired point of sale for accepting payment through debit or credit cards from the banking companies or any other digital payment service provider authorised by the State Bank of Pakistan.

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