Biometric Verification: A Secure Step in Sales Tax Registration

The Federal Board of Revenue (FBR) of Pakistan has implemented a crucial step to ensure transparency and security in the sales tax registration process – biometric verification. This article explains how this verification works and its importance for businesses registering for sales tax.

Simplified Registration, Secure Verification:

The FBR allows businesses to conveniently register for sales tax through mobile applications like Iris or Tax Asaan. However, to complete the registration and gain access to filing sales tax returns, biometric verification at a NADRA e-Sahulat Center is mandatory.

What is Biometric Verification?

Biometric verification involves confirming a person’s identity by using unique biological characteristics, typically fingerprints or facial recognition. In this case, visiting a NADRA e-Sahulat Center allows the authorities to verify your identity using your fingerprints, ensuring that the person registering for sales tax is indeed who they claim to be. In addition to ist time verifications, Sales Tax Registered Businesses are now required to make verifications annualy each year before July 31st. The e-sahulat centers have been notified about the change just recently so now you can make your business verified.

Why is Biometric Verification Important?

Biometric verification offers several advantages for both the FBR and businesses:

• Prevents Fraud: By verifying the identity of the applicant, biometric verification helps prevent fraudulent registrations and ensures only legitimate businesses are registered for sales tax.
• Enhances Security: This verification strengthens the integrity of the sales tax system, minimizing the risk of errors or manipulation.
• Streamlines Process: For businesses, completing biometric verification within a month of initial registration ensures a smooth transition to filing sales tax returns.

Consequences of Non-Verification:

If a business doesn’t complete biometric verification within the one-month timeframe after registering through the mobile applications, they will be removed from the Sales Tax Active Taxpayer List. This essentially means they won’t be able to file sales tax returns and could potentially face penalties for non-compliance.

Conclusion:

Biometric verification is a secure and efficient step added to the sales tax registration process in Pakistan. It fosters a more reliable tax system for both the FBR and businesses. By completing this verification within the designated timeframe, businesses can ensure they are compliant with regulations and can file their sales tax returns without any hurdles.

Additional Tips:

• Familiarize yourself with the deadlines for biometric verification after registering for sales tax through mobile applications.
• Locate your nearest NADRA e-Sahulat Center to schedule a convenient appointment for verification.
• Consider seeking guidance from a tax advisor if you have any questions regarding the sales tax registration process or biometric verification.

By staying informed and completing the necessary steps, businesses can navigate the sales tax registration process smoothly and contribute to a more transparent tax system in Pakistan.