In response to these significant retailers’ refusal to integrate with the Federal Board of Revenue’s Point of Sale (POS) system, the FBR has compiled a list of 114 unregistered enterprises (Tier-1) and decided to pursue enforcement action against them.
These 114 enterprises, according to a statement made by the state’s division of revenue, are operating illegally and are not remitting sales tax collected from customers to the federal government. The board has decided to enhance sales tax demands on these large stores (Tier-1) that miss the deadline of August 10, 2022, to link with the FBR’s POS system.
A list of 101 big merchants (Tier-1) who were required to link with the FBR’s POS system and would not be eligible for a 60% input tax credit was issued by the FBR last month.
All of the aforementioned Tier-1 merchants’ input tax claims will be rejected, according to the FBR, when they submit their sales tax returns for the month of August 2022. A system-based approach was employed to operationalize this legislative provision, according to the FBR’s announcement.