FBR Extends Deadline for Electronic Integration of Sales Tax System by One Month

The FBR extends deadline for electronic integration of sales tax system, giving businesses more time to align with the computerized customs platform.

New Integration Deadlines Announced for Corporate and Non-Corporate Taxpayers

The Federal Board of Revenue (FBR) has extended the deadline for electronic integration of sales tax systems. Corporate taxpayers now have until June 1, 2025, while non-corporate taxpayers have until July 1, 2025, to meet the new requirements.

Why the FBR Extended the Integration Deadline

The FBR extends deadline for electronic integration of sales tax system in response to difficulties faced by businesses. Many companies requested more time due to technical challenges, delayed software updates, and limited IT support.

What Is Electronic Integration of Sales Tax Systems?

Electronic integration means that businesses must connect their sales and invoicing systems to the FBR’s computerized platform. This allows real-time transmission of sales invoices, in line with Section 74 of the Sales Tax Act, 1990.

Departments Involved in Implementing the New Deadlines

FBR has directed the following departments to help with the integration process:

• Large Taxpayers Offices (LTOs)

• Medium Taxpayers Offices (MTOs)

• Corporate Tax Offices (CTOs)

• Regional Tax Offices (RTOs)

These offices are expected to assist and guide taxpayers throughout the process.

How to Complete the FBR Sales Tax Integration Process

Businesses should take the following steps to meet FBR’s integration requirements:

1. Install FBR-approved Point of Sale (POS) or invoicing software.

2. Link systems to the FBR’s real-time invoice verification portal.

3. Ensure all invoices are transmitted electronically.

4. Monitor compliance alerts and system updates from FBR.

Business Community Reacts Positively to Deadline Extension

Tax consultants and business owners have welcomed the move. Industry representatives say the extension shows FBR’s willingness to support compliance and reduce pressure on SMEs.

Key Benefits of Integrating with FBR’s Sales Tax System

The electronic integration of sales tax system offers several benefits:

• Greater Transparency in tax reporting

• Reduced Risk of Fraud

• Faster Refunds and Audits

• Simplified Tax Filing Process

• Accurate Financial Records

Over 25,000 businesses have already integrated, with more expected to follow.

What Happens If Businesses Miss the New Deadlines?

Businesses that fail to comply by June 1 (corporate) or July 1 (non-corporate) may face:

• Penalties and fines

• Suspension of input tax credits

• Legal actions by tax authorities

Final Reminder: Comply Before the New Deadline

The announcement that the FBR extends deadline for electronic integration of sales tax system is a reminder for businesses to take action now. This move is part of Pakistan’s broader effort to modernize tax collection and improve revenue transparency.

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