Islamabad: According to press reports, the Federal Board of Revenue (FBR) has set a deadline for Tier-1 shops to register with the agency. Failure to register will prohibit merchants from getting a 60 percent credit for input tax on filing their July sales tax return. According to the information provided, the deadline for non-integrated merchants to register is August 15.
With the issue of Sales Tax General Order No. 1 of 2022, the FBR has begun an integration push of Tier-1 merchants. From August 1, a system-based approach will be used for the integration of non-integrated Tier-1 merchants under this directive.
Furthermore, the FBR has posted a list of non-integrated shops on its website, however Tier-1 merchants that do not come under the definition of Tier-1 retailers in Section 2(43A) of the Sales Tax Act, 1990, can appeal to the commissioner to be removed from the list by August 10.
Furthermore, the list will be updated on a monthly basis, according to reports. Non-integrated Tier-1 merchants will be defined as all taxpayers on the list, and they will be denied input tax credit until they register with the authorities.