Saturday , January 28 2023

FBR Online Sales Tax registration How to Apply & Required Documents

ISLAMABAD: The federal government has decided in principle to introduce a law combining the Income Tax Ordinance, Sales Tax Act and Federal Excise Duty Act to expand the tax net and facilitate business.

FBR automated system for sales tax registration

The Federal Board of Revenue (FBR) has Started an automated system for sales tax registration from July 1st, 2019. The procedure has been proposed to replace the existing system under sub-rules (2) to (8) of Rule 5 of the Sales Tax Act, 1990.

How to Apply for FBR Online sales tax registration & Required Documents

An applicant with a National Tax Number (NTN) or income tax registration will be able to login to the online system and upload the following information and documents for sales tax registration:

Documents required for sales tax registration

Bank account certificate issued by the bank in the name of the business

Registration/consumer number with the gas and electricity supplier

Particulars of all branches in case of multiple branches at various locations

GPS-tagged photographs of the business premises

In the case of a manufacturer, GPS-tagged photographs of machinery and industrial electricity or gas meter installed

Upon furnishing the above documents, the system will register the applicant for sales tax.

After registration, the applicant or an authorized person will need to visit a National Database and Registration Authority (Nadra) e-Sahulat Centre within a month for biometric verification.

In case of failure to visit or failure to complete biometric verification, the registered person’s name shall be taken off the Active Taxpayer List for sales tax. In the case of a manufacturer, the FBR may require post verification through field offices or a third party authorized by the FBR. In case the field office, during post-registration scrutiny, finds that any document provided is not genuine/fake/wrong, it may issue a request through the system to provide the missing document within 15 days, failing which the registered person shall be removed from the sale tax Active Taxpayer List.