The Federal Board of Revenue (FBR) has required physical verifications of all firms registered from July 1, 2021, forward in a significant step to combat false sales tax registrations.
The FBR has given instructions to all field formations on sales tax registration in the category of manufacturers and physical verification of company premises in this regard.
Physical verification of business premises of all “manufacturers” registered from July 1, 2021, has begun in the field formations around the nation.
The FBR has made the registration procedure easier by introducing an online option. The computerized registration method has drastically decreased the time required for registration to a maximum of one week. Previously, the registration procedure, especially in the manufacturing sector, took a long time, which was a huge roadblock for a new firm.
To eliminate the registration backlog, the FBR has connected the Nadra biometric system and digitized the whole procedure. This is regarded as one of the FBR’s main accomplishments. To make business easier, the physical survey was preserved in the second step after registration.
According to the FBR’s instructions, post verification of company premises is required by different field offices for applicants seeking online registration for sales tax as “Manufacturer” under Rule 5 and 7 of the Sales Tax Rules, 2006. According to reports, the applicants are registered as “manufacturers” online using an automated module that requires field formations to verify the firm premises thereafter.
The Board may demand post-verification via field offices or a third party approved by the Board in the case of a manufacturer, according to rule 5 of the Sales Tax Rules.