Sales tax registration, de-registration: FBR launches awareness campaign

The Federal Board of Revenue (FBR) has launched an awareness campaign for taxpayers regarding sales tax (ST) registration and de-registration processes to ensure their compliance under the Sales Tax Act, 1990.
FBR's Member Facilitation and Taxpayer Education (FATE) Riffat Shaheen Qazi told Business Recorder on Sunday that traditionally businessmen and traders ignore the de-registration process without realising the fact that it is very important to get a NOC from the tax department. Usually, the taxpayers avoid the de-registration process on the presumption that it is a kind of an audit.
However, the de-registration only involves physical verification of business premises and pending tax liabilities, if any against the taxpayers. In this regard, the relevant procedure specified in the Sales Tax Act has to be followed regarding de-registration purposes.
A standard operating procedure (SOP) is needed to educate the taxpayers regarding the de-registration procedure. The department receives complaints from repeated non-filers, 'dormant' and 'inactive' taxpayers regarding the repeated issuance of notices. However, those taxpayers who have closed their business activities, can avoid such notices by obtaining the de-registration certificates. In other cases, such taxpayers can file 'null' return, which would also help in complying relevant provisions of the Sales Tax Act. If the taxpayer is dully aware about the de-registration procedure, he can apply for the same in the case of closure of business.
She said the FBR has decided to launch a countrywide awareness campaign among the business community about the said procedures. The FBR would advise the Large Taxpayers Units (LTUs) and Regional Tax Offices (RTOs) to prominently display the procedure of ST registration and de-registration at the offices to guide the taxpayers on these issues. The FBR FATE Wing would also start interacting with the tax bar associations to know about the practical difficulties of the taxpayers during the registration and the de-registration processes.
Shaheen said the purpose of having training workshops for the tax officials is to educate the taxpayers regarding the ST registration and the de-registration. If a registered person intends to close down his business, he should follow the de-registration process to avoid notices from the sales tax department. The persons, who have closed down their businesses, should dully comply with the de-registration procedure to avoid facing legal proceedings under the Sales Tax Act. In this way, the tax department would not issue any kind of notices to the persons, who have cleared their tax liability and discontinued businesses while following the de-registration procedure.
She also said that special training workshops would be held at the LTUs and the RTOs to inform the tax officials regarding the importance of the de-registration process.