FBR POS Integration: Answering The Most Frequently Asked Questions

FBR POS Integration

FBR POS Integration: Answering The Most Frequently Asked Questions

Paying tax is a critical part of operating a business. Fortunately, achieving all these objectives and enabling business-customer convenience without the requirement of hardware is now easier than ever with FBR POS Integration. It involves the collection of taxes, submission, and reporting to the concerned authorities. However, technically speaking, this integration is complex and challenging, but with team Xcentric handling it for you, it can be done hassle-free.  Have some more questions? Read on – we have answered them all in this blog.

Want to get your retail business’s POS solution integrated with the FBR server? We have you covered. To get a quote for the integration project, contact us by calling at 0300-800-2094 or email at [email protected] today.

8 Most Asked Questions Related To FBR POS Integration

For increasing the tax collection and getting LIVE sales reports, integrating the POS solution with the FBR server has been made mandatory for Tier-1 retailers in Pakistan. With the integration, the goal of Pakistan’s Federal Board of Revenue is to receive 100% retail invoices into their Electronic Device System. Yet, as a retailer, before getting the integration done, you might have some questions in mind, right? They are answered right below!

1.  Who Should Integrate POS Solution With FBR For Live Sales Reporting?

Every tier-1 retailer is required to integrate their POS solution with the computerized server of FBR. Under the Sales Tax Act of 1990, tier-1 businesses are the ones that fall into the following categories:

  • Retail business operating as a unit of any international or national store chain
  • Retail business operating inside a plaza or shopping mall; excluding kiosks
  • Retail businesses whose total power bill for consecutive 12 months is more than rupees twelve hundred thousand
  • Retailer-cum-wholesaler who bulk imports and supplies consumer goods on wholesale to other retailers and consumers
  • Retailers whose shop area measures 1000 square feet and more

FBR integration


2.  Is The Integration Mandatory For Leather & Textile Item Retailers?

According to the mandate, every tier-1 retailer must get their POS solution Integrated With FBR, irrespective of which items they retail. Hence, whether you deal in leather items, textiles, or any other item, integrating the POS solution with the Federal Board of Revenue’s server is a MUST.

3.   What Are The Sales Tax Rates For Items That Retailers Sale After Integration?

The sales tax rate on items that are sold by retailers after FBR POS Integration remains the same as for other retailers under the Sales Tax Act of 1990. However, the only exception is for the leather and textile items that are manufactured locally in Pakistan. When sold directly after integration, they are subject to 14% tax. And, if they are sold by a supplier, a 17% standard sales tax is applied. Other than that, category-wise, the sales tax on different items is as below:

  • No sales tax will be charged on items like fresh milk, rice, fruits & vegetables, pulses, poultry, and uncooked meat.
  • 14% sales tax will be charged on locally manufactured bags, shoes, garments, and other textile items.
  • Standard 17% tax will be charged on restaurant food, imported products, surgical instruments, and electronics.

4.   How Returns & Exchanges Are Handled In An FBR Integrated POS System?

In such scenarios, the point of sale system that the retailer has employed needs should have the capability to handle exchanges and returns. Such effective systems make required adjustments in the sales revenues – which are also reflected in the sales that are reported LIVE to the FBR server. However, in case the exchanges and returns are not reflected properly in the FBR POS Invoicing System, the retailer can use credit/debit notes and record them in the annexures of monthly sales tax returns.

Integrated With FBR

5.  Should Tier-1 Retailers Also Report Their Online Sales To FBR?

When it comes to online sales, tier-1 retailers are required to integrate the utility that is provided by the Federal Board of Revenue on its website. It will ensure that the sales are reported to FBR and the invoice number along with QR code is shared with the online customers on the invoice.

6.   Are Bakeries, Sweet & Meat Shops Also Required To Integrate POS With FBR?

As mentioned earlier, it is mandatory for every establishment or business that sells to the general public – whether a manufacturer or not – to report sales live with FBR POS Integration. Therefore, meat shops, sweet shops, and bakeries selling products to the general public also fall in the category of tier-1 retailers who have to get their POS systems integrated with the FBR server.

7.  What Is The Penalty For Retailers Failing To Integrate Their POS With FBR?

Under a section of the Sales Tax Act of 1990 amended by the Tax laws Ordinance in 2019, a penalty is imposed on retailers who fail at FBR POS Integration Software or try to bypass it. In fact, they will also have to pay a penalty of Rs. 1 million, and in case the failure continues, their business might also be sealed.

POS integration


8.  What Is The Penalty For Retailers Who Try To Bypass The FBR Server?

Retailers who try bypassing the FBR server by not reporting their sales in real-time and paying taxes face a penalty of five hundred thousand rupees or 200% of the sales tax amount; whichever is high. Even more, the retailers might also be sentenced to imprisonment for two years. Hence, get your FBR POS Integration done by a team of professionals at Xcentric. They will ensure that it does not fail and there are no loopholes that appear like you are trying to bypass the FBR server in any way.

Looking for an integration services provider to get your POS system integrated with the FBR server? Get on board with Xcentric. For a project quote, ring us at 0300-800-2094 or email at [email protected] today.

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    With the Federal Board of Revenue making POS Integration FBR mandatory, retailers in Pakistan have stepped towards real-time digitalization and reporting. Surely, this integration is not a compulsion only – but a plus point for the tier-1 retailers. However, it is not similar to installing or integrating a plugin on a website. Integrations that fail to report real-time sales to the FBR server result in penalties.

    Hence, for a fully-operative and seamless integration of your POS system with FBR, count on Xcentric. Our team handling the integration will document every single step and handle the tech tasks professionally. Moreover, they will also guide you about how to manage the sales tax returns – so before you are penalized, get the POS system integrated with the FBR server.

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