How to Claim Sales Tax Refund – Exporters?

The Federal Board of Revenue (FBR) has introduced significant changes to the Sales Tax Rules, 2006, vide S.R.O. 1507 (1)/2024 effective from October 1, 2024. These amendments aim to streamline the sales tax refund process for exporters in Pakistan.

Key Changes for Exporters:

Exporters can claim refund easily.

• Expanded Eligibility: The refund chapter now applies to all exporters, not just the five export-oriented sectors previously specified.
• Requirement for Export Proceeds: Commercial exporters must submit export proceeds realization certificates or bank credit advice to process their refund claims.
• STARR Processing: Some refund claims may be processed through the Sales Tax Automated Refund Repository (STARR).

How These Changes Benefit Exporters:

• Simplified Process: The amendments aim to streamline the refund process, reducing administrative burden for exporters.
• Wider Eligibility: More exporters can now benefit from the refund scheme.
• Improved Efficiency: The use of STARR for certain refund claims can enhance processing speed and accuracy.

Steps for Exporters to Claim Refunds:

1. Ensure Compliance: Ensure that your business meets all the necessary requirements for claiming a refund, including maintaining proper documentation and records.
2. Prepare Documentation: Gather the required documents, such as export proceeds realization certificates or bank credit advice, as well as any other supporting documentation.
3. Submit Refund Claim: File your refund claim with the FBR using the prescribed forms and procedures.
4. Provide Necessary Information: Include all relevant details and supporting documents to ensure a smooth processing of your claim.
5. Monitor the Process: Keep track of the status of your refund claim and follow up if necessary.

Additional Considerations:

• Consult with Tax Professionals: For complex cases or if you have any doubts, it’s advisable to consult with a tax professional.
• Stay Updated: Stay informed about any further changes or clarifications issued by the FBR regarding the refund process.