FBR Sales Tax Clarification 2019

Government of Pakistan Revenue Division Federal Board Of Revenue (Inland Revenue Policy Wing) has issued the Notification on 1st August, 2019 in the matter of Sales Tax Clarification. The detail of the letter is given under:

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It has been observed that in many cases, suppliers of goods and services are charging Sales Tax on invoices/receipts without identifying their Sales Tax Registration Number (STRN) on the ‘Invoices / Receipts issued to the customers. At times, National Tax Number (NTN) is indicated on invoices, to exhibit that the supplier is registered.

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Customers are suggested to ask for invoices/receipts having Sales Tax Number (STRN) on the invoices/receipts on purchase of goods and services. Sales Tax can only be recovered from the customer if the supplier is registered for sales tax purposes, and reflects the Sales Tax Registration Number (STRN) on the invoice/receipt issued to the customer. In other cases, the supplier is not entitled to recover sales tax from the customers. Customers should beware of the same.

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This clarification is being issued for the reason that many suppliers are charging Sales Tax from customers without getting them registered under the Sales Tax regime. This practice is against the low and is liable to penal action. This practice leads to increase in prices and undue enrichment of sellers without any deposit of tax with the government Customers are suggested to seek invoices/receipts from supplier with STRN on the invoices I receipts issued, if Sales Tax is charged on their purchases.

FBR Sales Tax Clarification 2019

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