FBR launches Point of Sale Invoicing System for all the Restaurants and Food Points
*ISLAMABAD - Federal Board of Revenue **FBR launches Point of Sale Invoicing System for all the Restaurants and Food Points.*
*FBR has urged all restaurants and bakeries to integrate with tax collecting authority's newly introduced Point of Sale (POS) invoicing system.*
In a list of Frequently Asked Questions (FAQs) issued by FBR, the authority said that all those establishments, whether manufacturers or not, who sell their goods to general public for consumption are retailers, as provided in clause (28) of section 2 of the Sales Tax Act, 1990.
“Therefore, bakeries and sweetmeat shops, selling goods to general public are also retailers. Therefore, such bakeries and sweetmeat shops, whether or not manufacturers also, shall be treated as tier-1 retailer if they fall in the definition of tier-1 retailer as in clause (43A) of section 2 and they shall be accordingly required to integrate their POSs," stated FBR.
Furthermore, all restaurants are mandated to integrate their POSs. Chapter XIV-A of the Sales Tax Rules, 2006 pertains to restaurants, snack bars, cafes etc. “All such establishments, whether or not falling in category of tier-1 retailers, are required to integrate their POSs under the said Chapter," said FBR.
The tax revenue authority informed that the retailers don't need to purchase any additional machinery to use this system, as they can integrate their system with POS by downloading an application from the FBR website.
FBR further warned that the retailers, who do not get them integrated into the POS system, will not get full input tax credit.
POS integration is mandatory for all tier-1 retailers irrespective of the items they are dealing in. All tier-1 retailers whether dealing in textile and leather items or any other item are required by law to integrate their POSs with FBR's system.