FBR POS reporting for retailers, and where MartPOS stands

Some retailers in Pakistan are required by FBR to connect their point of sale to FBR's POS system, run by PRAL, so that each sale is reported to FBR as it is made. If you have heard about it from a tax adviser, a distributor or another shopkeeper, this guide explains in plain words what it usually involves, what to ask any software vendor, and how it works in MartPOS. It is general information, not tax advice: the rules, the thresholds and the deadlines are set by FBR and change with budgets, so confirm your own position with FBR or your tax adviser.

Who has to report

FBR's POS reporting applies to retailers that FBR classes as Tier-1. Which shops that covers depends on criteria FBR sets and changes from time to time, such as the kind of premises, the size of the shop and how the business is registered. Do not rely on a neighbour's situation or on an old notice: ask your tax adviser whether your shop is covered, and from when.

If FBR has written to you about it, do not decide on your own that it no longer applies. Ask your adviser first. And if your shop is not required to report, there is nothing to do: your software should not push FBR fields, fees or receipt lines on you.

What it usually involves

In outline, and your tax adviser will know the current details:

1. Registration. The business and each outlet are registered with FBR, and each point of sale gets an identity from FBR, often called a POS ID, with the access details it needs.
2. Reporting each sale. When a bill is made, the POS sends it to FBR, and FBR answers with its own invoice number.
3. The receipt. The customer's receipt carries FBR's invoice number and a QR code, so that the customer can verify the invoice in FBR's Tax Asaan app or by SMS to 9966.
4. Returns. A return is reported against the original invoice.
5. A service fee. A small POS service fee per invoice has applied; ask your tax adviser for the current amount and how it should be shown.
6. Tax on items. Each item needs the right tax rate and, for reporting, a PCT code. Your tax adviser decides these, not the software.

Questions to ask any software vendor

These are fair questions for any POS, including ours:

• What happens when the internet is down? The counter should keep billing, and invoices made meanwhile should be sent later, in order, without anyone remembering to.
• What happens if the connection breaks halfway? An invoice must never be reported twice, or printed with a number FBR did not issue.
• Who registers the shop? Usually you or your tax adviser. Be careful with anyone who promises to take care of FBR entirely.
• Where do the access details live? They should stay on the shop's own PC, not on someone else's server.
• Does it stay out of the way when it is off? A shop that does not have to report should see no FBR fields, lines or fees.

FBR POS integration in MartPOS

MartPOS has optional FBR POS integration, for FBR's POS system. It is off until the shop switches it on in Settings: until then nothing is sent, no fee is added, receipts carry no FBR lines and items show no FBR fields. When it is switched on:

• every sale and every return is reported to FBR right after the bill is saved, through FBR's online API or through FBR's Fiscal Component on the store PC;
• the receipt carries FBR's invoice number and its QR code, with the shop's NTN, STRN and POS ID;
• a bill made while FBR cannot be reached prints as an offline invoice and is sent automatically later, oldest first;
• returns go to FBR as credit notes against the original invoice;
• the Re 1 POS service fee, when switched on, is printed on its own line and kept out of sales and profit, because it is owed to FBR;
• the access token is entered only on the store PC and never sent to MartPOS Cloud.

Choose whichever you registered for. Both work with the same receipts and the same list of invoices waiting for FBR.

When the internet goes down

The sale is always saved first, and the bill waits at most a few seconds for FBR's answer. If FBR cannot be reached, the receipt prints as an OFFLINE INVOICE and the invoice joins a waiting list. MartPOS sends waiting invoices again in the background, oldest first, at growing intervals until FBR has them, and after FBR fails to answer, the next bills skip the wait for about two minutes so the queue at the counter keeps moving.

MartPOS never prints an FBR invoice number it did not receive from FBR. If the connection breaks after an invoice was sent but before FBR answered, it does not send the invoice again blindly, which could report it twice: a person checks FBR's records and records what they found. The top bar shows how many invoices FBR does not have yet, and Send to FBR now tries one at once.

Setting it up

1. Register the outlet and its POS with FBR, yourself or with your tax adviser, and get a POS ID and an access token, or install FBR's Fiscal Component.
2. On the store PC, open Settings › FBR POS, tick Report invoices and returns to FBR, choose how MartPOS reaches FBR, and enter the POS ID, the token and the default PCT code.
3. Give items their tax rates, and their own PCT codes or Third Schedule marks where your adviser says they differ.
4. Choose Sandbox (testing) or Production (live): the choice is yours. In Sandbox, make a small test bill yourself, a return and a bill with the internet off, and check the receipts. Then switch to Production before billing customers.

With several branches, each branch is its own FBR outlet with its own POS ID, and the owner can see and change each branch's other FBR settings from MartPOS Cloud. Every field and every common message is in the help centre's guide to FBR POS integration.

What MartPOS does not do for you

• It does not register you with FBR.
• It does not choose tax rates or PCT codes; your tax adviser gives them, and you enter them on each item.
• It does not decide whether your shop has to report.

Common questions

Does FBR reporting slow down billing?

Only by a few seconds at most. The sale is saved first, and when FBR is slow or cannot be reached the bill prints as an offline invoice and is sent later, while the counter carries on.

What if the internet is down all day?

Keep billing. Receipts print as offline invoices, and MartPOS sends them to FBR by itself, oldest first, once FBR can be reached.

We are not required to report. Should we switch it on anyway?

There is no need. A shop that leaves it off sees no FBR fields, no FBR lines on receipts and no fee, and it can be switched on later if your position changes.

Is the customer charged the Re 1 fee?

Yes, when the fee option is on. It prints as POS Service Fee on its own line, and MartPOS keeps it out of your sales and profit, because it is owed to FBR.

Who decides the tax rate on an item?

You and your tax adviser. MartPOS keeps a tax rate on each item, adds it on top of the price and shows it on the till, receipts and reports, but suggests no rate.

More on the FBR POS reporting page. If FBR has written to your shop about reporting, ask your tax adviser first, and tell us what was asked if you would like help with the settings.