Online Store Integration of Tier-1 Retailers
Online Store Integration of Tier-1 Retailers: Online sales made through websites hosted with a registered domain name shall also be treated as sales made through point of sales on a notified outlet and accordingly covered under the purview of this rule, provided the sale data transmitted to the Board’s Computerized System through a prescribed integration software with the same particulars as stipulated in sub-rule (5) and invoice is provided to the customer with particulars as in sub-rule (6).
Such website or websites shall be registered with the Computerized System with following details, namely:-
(a) domain name;
(b) domain name provider;
(c) name of service provider managing the website; and
(d) addresses of supply centres and warehouses.
Sales made through social media portals shall also be treated as covered under this sub-rule if the same are recorded and transmitted through point of sale in real-time and provisions of sub-rules (5) and (6) are complied with.”
Online Integration of Tier-1 Retailers
Online Store of eCommerce websites/ falling under Tier-1 Retailers
(a) it can perform following tasks, i.e.–
(i) receive, record, analyze and store fiscal data;
(ii) format fiscal data into fiscal invoices;
(iii) transmit the fiscal data to the Board’s Computerized System through secure means; and
(iv) print sales tax invoices.
(b) Sales Data Controller (SDC) is the component of an EFD that—
(i) receives transaction data from a POS component of the EFD;
(ii) analyses the transaction data into fiscal data;
(iii) formats the fiscal data as a fiscal invoice (sales tax invoice), creates the digital signature for the EFD and records the digital signature on the fiscal invoice;
(iv) transmits the fiscal invoice number to the POS;
(v) encrypt and preserves the transaction data and fiscal data in an irrevocable and secure manner;
(vi) transmits the fiscal data to the Board’s Computerized System;
(c) External SDC (E-SDC) is hardware set up as a separate component of the EFD used by integrated supplier;
(d) virtual SDC (V-SDC) is software attached to the POS system;
(e) an integrated supplier must integrate each and every POS of the business to any of the SDC;
(f) an EFD must comply with the following, namely:-
(i) each POS is accredited;
(ii) each POS transmits to the SDC a receipt, on which is recorded the transaction data specified in sub-rule (5), for each transaction of the business;
(iii) the SDC receives the transaction data, analyses the data, verify calculated taxes to produce fiscal data for the transaction, record the invoice data and transmits the fiscal invoice number to POS;
(iv) POS prints the fiscal invoice with the fiscal invoice number and QR Code;
(v) the SDC transmits the fiscal data to the Board’s system; and
(vi) a fiscal invoice is produced for each sale invoice.
(g) the point of sale should have the following functionalities, namely:-
(i) provide mechanism to connect to SDC;
(ii) send each invoice to SDC for the issuance of fiscal invoice;
(iii) generate the QR Code on the base of fiscal invoice number generated by the SDC and print the QR Code on receipt;
(iv) must perform closing on the close of day, week and month;
(a) opening total quantity;
(b) opening total value;
(c) total purchase quantity;
(d) total purchase value;
(e) total sold quantity;
(f) total sale excluding sales tax;
(g) total sales tax;
(h) total sales value including sales tax;
(i) closing total quantity;
(j) closing total value; and
(k) total number of invoices for the period
(vi) every adjustment, modification or cancellation must be recorded duly maintaining logs for each activity; and
(vii) system events need to be recorded.
(5) The sale invoice for each transaction shall be transmitted to EFD specifying the following particulars, namely:-
(a) POS Registration Number;
(b) unique sequential invoice number;
(c) date and time of sale;
(d) name of buyer, where recorded;
(e) item-wise description of goods and price exclusive of tax;
(f) item-wise quantity of goods;
(g) tax rate for each item;
(h) total sales value;
(i) discount, if any;
(j) tax charged on the invoice;
(k) mode of payment, cash or credit card. Omitted.
(6) POS shall print a clear and legible sales tax invoice for each transaction, copy of which shall be provided to the customer, containing the following particulars in addition to those as in the preceding sub-rule, namely:-
(a) QR Code (Generated based on FBR Fiscal Invoice Number);
(b) FBR Fiscal Invoice Number;
(c) name of the business;
(d) sales tax registration number; and
(e) name or location of the notified outlet.
The EFDs installed at each notified outlet shall be tamper-proof and all the data recorded thereon shall be backed up at an offline site.
In case of sale returns or exchange, a proper credit note or supplementary invoice with prescribed particulars shall be issued containing the reference of original invoice and the detail of amount refunded or additionally charged, along with sales tax involved.
All the sales and transactions made from the notified outlet shall be communicated to the Board’s Computerized System through EFD and the sales data so transferred shall be accommodated in Annex-C or other relevant Annex of the monthly sales tax-cum-federal excise
return.
The SDC shall be capable of generating and sending alert massages resulting from any malpractice or error or any inconsistent action noticed in the system and keeping a log thereof.
The integrated supplier must have the facility of debit and credit card machine installed at each notified outlet and the sales through debit or credit cards shall not be ordinarily refused.
The transactions on each point of sales in the notified outlet shall be recorded by a CCTV camera and the recording thereof shall be retained for a period of at least one month. Such recordings shall be provided to the Commissioner concerned as and when demanded and for the time as specified.
In case of supply of exempt items, the transactions thereof shall also be recorded and the invoice issued in the same manner. Such data shall also be communicated to the Board’s Computerized System in the same manner.
The cost for integration including the cost of equipment and fiscalization shall be borne by the integrated supplier.
The lower rate in respect of supplies referred to at the said serial 66, if applicable, shall be applied from the day next to the one when the would-be integrated supplier certifies to the Commissioner concerned that he fulfills all the requirements as specified in this Chapter and the Commissioner makes an entry to that effect in the Computerized System.
The integrated supplier shall prominently display on each outlet a signboard bearing FBR’s official logo along with the text “Integrated with FBR” and also the registration number of each POS verifiable through the Board’s verification services.
Who are Tier-1 retailers under Sales Tax Act?
The term ‘Tier-1 retailer’ was introduced through Finance Act, 2017 by inserting relevant clause into Sales Tax Act, 1990.
All Tier-1 retailers are required to integrate all their Point of Sales (POSs) with computerized system of the Federal Board of Revenue (FBR).
For more information on FBR’s new regulations / circulars/ SROs/ amendments in taxation laws in Pakistan please visit https://www.fbr.gov.pk/
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