If you are a store who sells products of any kind, whether they are consumable or of any other nature, then you may already have a POS System or have wished to learn more about POS systems and how they integrate with FBR.
A point-of-sale (POS) system is important because it gives you visibility and data on a variety of aspects of your organisation, including sales, inventory, finances, and accounts. It is imperative that you keep a close check on the many aspects of your business operations at all times, even when you are conducting those processes.
A point-of-sale (POS) system is made up of numerous hardware and software components, all of which work together to aid you in the operation of your organisation as a whole. The cash drawer, the monitor, the processing unit, the bar code scanner, and the bar code printing machine are all included in the POS hardware. On the other hand, point-of-sale (POS) software is made up of a number of different modules, some of which include sales, inventory, and distribution, amongst others.
It is a mandatory legal requirement for a Tier-1 Retailer, as defined in the Sales Tax Act, 1990, to get their POS system integrated with the online sales tax invoice system of FBR. In addition to being extremely helpful in reporting and management of a small sized business, this is a requirement that must be met in order to comply with the law. The following are the legal definitions of what constitutes a Tier-1 Retailer:
retailer operating as a unit of a national or international chain of stores; retailer operating in an air-conditioned shopping mall, plaza, or centre, excluding kiosks; retailer whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeded Rupees twelve hundred thousand; wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on wholesale basis to the retailers as well as on retail basis to the general bo wholesaler-cum-retailer, engaged in bulk import and supply of consumer goods on
The connection of your POS System with FBR will assure the essential three components of reporting your sales data to FBR, obtaining your printed fiscal invoice number on sales receipts, and updating the database in preparation for future reports.
It will help you as a retailer to automatically upload sale invoices and credit notes to the FBR servers, which will reduce the expenditure cost of taxation services by automatically preparing the STR for local Tier-1 retailers. This is one of the key advantages of POS system integration with FBR for you as a retailer. Another advantage is that it will help reduce the expenditure cost of taxation services.
Tier-1 retailers who have had their POS systems integrated with FBR will profit from an adjustment to a higher rate of input tax. This is one of the many significant advantages that are available to these types of retailers. When it comes to non-integrated Tier-1 retailers, the FBR has mandated that during a tax period or part thereof in which the retailer continues to operate as a non-integrated business, the adjustable input tax for the entirety of that tax period must be reduced by sixty percent. This rule applies to the entire tax period.
