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The Federal Board of Revenue (FBR) has implemented a significant measure to enhance tax base documentation, mandating profit-earning entities, retailers, professionals, and service providers to electronically integrate with the FBR system and register all their points of sale (POS) by July 1, 2024.
Previously, only large-scale retailers were obligated to integrate with the FBR’s POS system, but now, numerous professional service providers, healthcare professionals, and various types of retailers, including manufacturer-cum-retailer, wholesaler-cum-retailer, and importer-cum-retailer, are required to comply.
Under this directive, Federal Board of Revenue has instructed foreign exchange dealers, clubs, private educational institutions, private hospitals, restaurants, hotels, guest houses, marriage halls, courier services, beauty parlors, health clubs, medical services, pathological laboratories, chartered accountants, and retailers to integrate their POS with the FBR’s system. The FBR issued SRO.428 (I)/2024 to amend Income Tax Rules, 2002 on Friday.
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Integrated businesses must ensure all payment counters, including points of sale at each outlet, are available for system installation, as stated by Federal Board of Revenue.
These taxpayers and service providers will install approved fiscal electronic devices and software and notify the Board through the Computerized System of all establishments and register each point of sale (POS) to activate integration.
According to SRO.428 (I)/2024, a licensed integrator seeking to supply an electronic fiscal device and software must apply to the Board for a license.
The integration extends to various sectors such as foreign exchange dealers, private educational institutions, restaurants, hotels, courier services, beauty parlors, clinics, hospitals, health clubs, gyms, photographers, event managers, and retailers including manufacturer-cum-retailer, wholesaler-cum-retailer, importer-cum-retailer, or any other entity combining retail sales with other business activities.
Federal Board of Revenue has also provided details of exclusions where integration with the system would not be required under SRO.428 (I)/2024.