FBR Sales Tax Integration for Ecommerce business

 FBR Sales Tax Integration for Ecommerce business

FBR Sales Tax Integration for Ecommerce business

The Federal Board of Revenue (FBR) has defined the online market place which covers ecommerce platforms, online e stores and websites, portals or similar means inc social media platforms, which facilitate sale of goods, including third party sale. According to the Sales Tax Rules of 2006 CHAPTER XIV-AA, Online sales made through websites hosted with a registered domain name shall also be treated as sales made through point of sales (POS) on a notified outlet and accordingly covered by FBR. Such website or websites shall be registered with the FBR 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.

Additionally 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 are applied.

These new measures provide government with the tools needed to ensure that online platforms play their part in the collection of taxes. They will also level the playing field for those on high streets and in malls, which have had to compete against online competitors enjoying a tax advantage.

Ecommerce Online Marketplace Integration with FBR Sales Tax System

To help and facilitate e-commerce merchants and online stores in Pakistan Tier3 provides complete ready to deploy FBR Integration Plugins and extensions for all major ecommerce frameworks including woocommerce, Magento, shopify and OpenCart. A bespoke custom development and integration service is also available if your store is using custom developed shop and as long as you have the complete source code and database access.

Our development and integration teams consist of FULL Stack Developers (asp, php, react, .net, javascript) hence making sure that you have 100% integration without any changes to design or compromising front end UI and UX of your online store.

FBR imposes 25% sales tax on luxury imported, local goods - SRO 297(I)/2023

SRO 297(I)/2023

Federal Board of Revenue (FBR) on Wednesday issued a list of imported and locally produced goods for applying sales tax at 25 per cent.

The FBR issued SRO 297(I)/2023 dated March 08, 2023 for applying sales tax rate at 25 per cent on import and local supply of luxury goods. The government on February 15, 2023 presented a mini budget to generated additional revenue. Normal rate of sales tax has been increased to 18 per cent from 17 per cent through Finance (Supplementary) Act, 2023. Furthermore, another rate of sales tax at 25 per cent was introduced on imported and local supply of goods.

The FBR issued 36 imported items with long tariff line for the application of sales tax at 25 per cent. Furthermore, the revenue body also issued a list of locally manufactured or assembled SUVs and CUVs motor vehicles for the application of sales tax at 25 per cent. The FBR clarified that for removal of doubt the provisions of the notification/SRO shall not be applicable in respect of goods specified in the Eighth Schedule to the Sales Tax Act, 1990.

List of Items that Fall Under - SRO 297(I)/2023

Following is the list of imported and locally produced goods for application of sales tax rate at 25 per cent

POS SYSTEM IN KARACHI | POS SYSTEM IN LAHORE | POS SYSTEM IN ISLAMABAD | POS SYSTEM IN RAWALPINDI | POS SYSTEM IN MULTAN | POS SYSTEM IN PESHAWAR

Sales Tax Increase from 17 % to 18 %

 

Finance division has issued notification to increase sales tax in Pakistan from 17% to 18%. The standard rate of sales tax has been increased from 17% to 18% through SRO 179(I)/2023 dated February 14, 2023. The amendment through SRO 179 is not applicable on goods subject to sales tax at retail price as specified in the Third Schedule to the Sales Tax Act, 1990. 

All FBR POS integrated retailers have been upgraded to new tax bracket accordingly.