This article explains recent changes to sales tax registration, including a new requirement for annual biometric verification. Businesses registered for sales tax in Pakistan now have to undergo an annual verification process. This mandate was recently announced and will require all businesses to be verified before July 31st of each year.
- Biometric Verification: All businesses registered for sales tax must undergo annual biometric verification in July.
- Verification Process:
- One-time verification is done at registration (NADRA Center).
- Pre-verification happens at the time of registration.
- Post-verification will be conducted annually in July (going forward).
- Failure to verify could lead to return filing issues.
- Purpose of Verification:
- Control fake invoices and ensure proper tax collection.
- Identify businesses manipulating the supply chain for tax evasion.
- Create a more transparent and accountable business environment.
- Annual Verification: Sales tax registered businesses must verify their information yearly.
- Verification Deadline: The verification process needs to be completed before July 31st of each year.
- Location: The verification process will be conducted at e-sahulat centers across the country.
This requirement poses a significant challenge for business owners and directors of companies who reside abroad. Since they cannot physically visit Pakistan to undergo biometric verification at NADRA facilities, the Federal Board of Revenue (FBR) has outlined a detailed procedure to facilitate compliance for such individuals.
Updated SOP for Overseas Individuals
Recognizing the difficulties faced by those outside Pakistan, RTO Karachi issued Standard Operating Procedures (SOPs) to address this issue. The process is as follows:
- Valid Visa Requirement:
Individuals residing abroad must possess a valid visa for the country in which they are currently located. This visa serves as proof of their legitimate presence in the foreign country. - Application Preparation:
A formal application for biometric verification needs to be prepared. This application should include all necessary details and be duly signed by the individual seeking verification. - Consulate Attestation:
The prepared application must then be taken to the Pakistani consulate in the respective country. At the consulate, the application will be attested by an attestation consultant authorized by the embassy. - Legal Representative in Pakistan:
The individual must appoint a legal attorney or representative in Pakistan. This representative will be responsible for submitting the attested application to the relevant authorities. - Submission to Commissioner:
The representative will submit the attested application to the FBR commissioner in the jurisdiction where the business is registered. Along with the application, a request for a Non-Objection Certificate (NOC) is filed. - Issuance of NOC:
Upon review and approval of the application, the commissioner will issue an NOC, confirming the absence of objections to the biometric verification being processed remotely. - Update in FBR System:
After the NOC is issued, the commissioner and their staff will update the individual’s biometric verification status in the FBR system, ensuring compliance with SRO 350.
Ensuring Compliance from Abroad
By following this procedure, individuals residing abroad can meet the biometric verification requirements without the need for physical presence in Pakistan. This facilitates continued compliance with sales tax regulations and ensures that businesses remain in good standing with the FBR.
Final Thoughts
SRO 350 highlights the importance of keeping business compliance streamlined and up to date. While the biometric verification requirement adds an extra layer of oversight, the SOP issued for overseas individuals provides a feasible path to compliance.
how can one go through this process residing / settled abroad if he / she is not living in Pakistan and can not come now or every year for this biometric verification?
FBR hasn’t yet issued any updates regarding this.
Iam an exporter currently outside pakistan can biometric be done in any consulate of pakistan
Yes.. But confirm before visiting.. Cause at some countries this is still not updated by NADRA.
Visit near last dates.
Can I do my biometric abroad ?
I am regularly Tax payer since last year I am in abroad & here there is no Pakistan consulate & foreign office so is any facility I can down load software and I can done my biomatrix.
Email your particulars to FBR helpline and ask them for facilitation, depending on the case they can allow biometric extension.
Email to you relevant RTO as well.
I live abroad I have some import from Pakistan.
How can I do online biometric for the Salestax.