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Automated system for sales tax registration to be effective from July 1: FBR

Updated June 24, 2019

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Applicants with NTN or income tax registration will be able to apply for sales tax registration. ─ APP/File
Applicants with NTN or income tax registration will be able to apply for sales tax registration. ─ APP/File

The Federal Board of Revenue (FBR) on Monday announced that an automated system for sales tax registration will be effective starting July 1.

A press release issued by the FBR stated that 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.

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:

  • Bank account certificate issued by 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 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, the FBR press release said.

After registration, the applicant or an authorised 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 case of a manufacturer, the FBR may require post verification through field offices or a third party authorised by the FBR, the statement said.

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.