*ISLAMABAD – Federal Board of Revenue **FBR launches Point of SaleInvoicing System for all the Restaurants and Food Points.*
*FBR has urged all restaurants and bakeries to integrate with taxcollecting authority’s newly introduced Point of Sale (POS) invoicingsystem.*
In a list of Frequently Asked Questions (FAQs) issued by FBR, the authoritysaid that all those establishments, whether manufacturers or not, who selltheir goods to general public for consumption are retailers, as provided inclause (28) of section 2 of the Sales Tax Act, 1990.
“Therefore, bakeries and sweetmeat shops, selling goods to general publicare also retailers. Therefore, such bakeries and sweetmeat shops, whetheror not manufacturers also, shall be treated as tier-1 retailer if they fallin the definition of tier-1 retailer as in clause (43A) of section 2 andthey shall be accordingly required to integrate their POSs,” stated FBR.
Furthermore, all restaurants are mandated to integrate their POSs. ChapterXIV-A of the Sales Tax Rules, 2006 pertains to restaurants, snack bars,cafes etc. “All such establishments, whether or not falling in category oftier-1 retailers, are required to integrate their POSs under the saidChapter,” said FBR.
The POS system has integrated major retail outlets with the FBR system, thenew system allows buyers to verify their tax payment through Tax Asaan App,informed spokesperson FBR.
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The tax revenue authority informed that the retailers don’t need topurchase any additional machinery to use this system, as they can integratetheir system with POS by downloading an application from the FBR website.
FBR further warned that the retailers, who do not get them integrated intothe POS system, will not get full input tax credit.
POS integration is mandatory for all tier-1 retailers irrespective of theitems they are dealing in. All tier-1 retailers whether dealing in textileand leather items or any other item are required by law to integrate theirPOSs with FBR’s system.
