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Sunday, October 06, 2024  
02 Rabi Al-Akhar 1446  

FBR to impose heavy fines on large retailers for issuing non-certified receipts

The proposed fine is Rs 500,000 for each non-compliant receipts
Reuters
Reuters

The Federal Board of Revenue (FBR) is set to impose significant fines on large retailers caught issuing non-certified electronic invoices or receipts to customers.

The FBR is drafting regulations aimed at penalizing Tier-1 retailers that fail to report sales tax through the FBR’s electronic system accurately, Business Recorder reported.

The proposed fine is Rs 500,000 for each non-compliant receipt, and the FBR plans to reward consumers with Rs 5,000 for reporting these non-certified electronic receipts to tax authorities.

Initially, the FBR mandated the electronic integration of point-of-sale (POS) systems for all Tier-1 retailers in the textile and leather sectors to ensure accurate sales reporting and proper tax collection.

Retailers are required to install a software extension provided by the FBR on their systems, which enables real-time reporting of sales tax to the FBR’s server.

The FBR has identified four categories of Tier-1 retailers: national and international chain stores, retailers located in shopping malls, plazas, or centers; those with cumulative electricity bills exceeding 1.2 million rupees over the past 12 months; and wholesalers who also retail consumer goods.

In 2022, the FBR launched a POS invoicing prize scheme to encourage tax compliance and improve economic documentation. This scheme included monthly computerized drawings, awarding cash prizes to 10,000 lucky winners.

However, the FBR suspended the prize scheme in October 2022 after conducting 10 ballots.

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