The Federal Board of Revenue (FBR) of Pakistan has implemented a new requirement for businesses registering for Sales Tax using the Simplified Sales Tax Registration application (Iris or Tax Asaan mobile app). This article explains what this means for new registrants and the importance of biometric verification.
What’s Changed?
Previously, businesses could complete the Sales Tax registration process through the simplified application without any physical verification. However, under the new regulations, biometric verification at a National Database and Registration Authority (NADRA) e-Sahulat Center is now mandatory.
The Verification Process:
- Registration: Businesses register for Sales Tax using the Iris or Tax Asaan mobile app.
- Verification Window: Following registration, businesses have one month to visit an e-Sahulat Center for biometric verification using their fingerprints or thumb impression.
- Successful Verification: Upon successful verification within the timeframe, businesses are authorized to file their Sales Tax Returns.
- Missed Verification: If a business fails to complete biometric verification within a month, they will be removed from the active Sales Taxpayer List. This essentially means they cannot file returns or enjoy the benefits of being a registered taxpayer.
Importance of Biometric Verification:
This new requirement aims to:
- Combat Fraud: Biometric verification helps prevent fraudulent registrations and ensures the legitimacy of businesses applying for Sales Tax.
- Enhanced Data Integrity: It strengthens the accuracy of the Sales Tax database by linking businesses to verifiable identities.
- Improved Tax Compliance: The verification process encourages timely registration and filing of Sales Tax Returns, leading to a more robust tax system.
Staying Compliant:
Businesses considering Sales Tax registration should be aware of this new requirement. Here’s how to ensure a smooth registration process:
- Register through the authorized apps (Iris or Tax Asaan).
- Locate your nearest e-Sahulat Center. https://e-sahulat.nadra.gov.pk/
- Schedule a visit within one month of registration.
- Bring valid identification documents.
- Complete the biometric verification process.
Conclusion:
By understanding and complying with the new biometric verification requirement, businesses can avoid delays or potential removal from the Sales Taxpayer List. This step contributes to a fairer and more efficient tax system in Pakistan.
Remember, tax laws and regulations can change. It’s advisable to consult with a tax professional or stay updated on the FBR website for the latest information.
