ISLAMABAD: The Federal Board of Revenue (FBR) has introduced new measures to tackle violations in the issuance of unverified invoices by retailers, empowering authorities to seal business premises or retail stores of Tier-I retailers found in breach of the rules.
In a notification issued on Monday (SRO.164(I)/2025), the FBR amended the Sales Tax Rules of 2006, outlining specific conditions under which businesses can face penalties, including the sealing of their premises. According to the updated rules, any retailer who issues unverified invoices, fails to enter offline invoices into the system within 24 hours, or disconnects their store from the FBR database for 48 hours will face severe penalties.
In such cases, the business premises of the registered person may be sealed. Additionally, if the retailer’s invoicing device fails to record sales during offline periods, the premises could also face closure.
The new rules also detail the process for de-sealing business premises. Once a business has been sealed, the concerned Commissioner Inland Revenue is required to impose a penalty and issue a de-sealing order within 24 hours of the penalty payment and the resolution of any audit discrepancies. The retailer must also ensure that any software bugs are fixed and comply with all requirements set forth under Chapter XIV-AA of the Sales Tax Rules.
After de-sealing, the Commissioner will carry out a software audit across all branches of the retailer to ensure accurate sales records are maintained. Any under-declared sales discovered during the audit will lead to the creation of a tax demand for evaded duties. If the retailer fails to make the necessary payment, the premises will remain sealed for up to a month, with a re-sealing order issued 15 days after the initial violation.
The new rules aim to tighten the control over tax evasion and ensure that businesses comply with the required digital record-keeping standards. The FBR’s actions are part of a broader initiative to improve tax compliance and address loopholes in the retail sector.
