As a taxpayer, it is important to keep your sales tax records in order. This is because the Federal Board of Revenue (FBR) may audit you at any time, and they will need to have access to your records in order to verify your tax liability.
The FBR can audit you for a number of reasons, such as:
- To verify that you have paid the correct amount of sales tax.
- To ensure that you are registered for sales tax if you are required to be registered.
- To investigate suspected tax evasion.
If the FBR audits you and they find that you have not kept your records in order, they may assess you additional taxes, penalties, and interest.
So, how long should you keep your sales tax records? The FBR recommends that you keep your records for at least six years. This is because the FBR can assess you for sales tax for up to six years after the due date of the tax.
However, it is a good idea to keep your records for even longer, just in case. For example, if you sell a business, you may need to keep your sales tax records for seven years, or even longer, depending on the terms of the sale.
There are a number of ways to keep your sales tax records in order. You can:
- Store your records in a safe place.
- Scan your records and store them electronically.
- Use a cloud-based storage service.
No matter how you choose to store your records, it is important to make sure that they are accessible and that they are in good condition.
By keeping your sales tax records in order, you can protect yourself from potential tax problems.
