Sales tax refunds: Required documents & process.
Who can claim sales tax refunds ?
- Registered manufacturer- cum-exporters and commercial exporters with zero rated supplies.
- A Registered persons who pay tax inputs for use in manufacture of goods, tax payable ‘@0% under the Sales tax act.
- Registered taxpayers claiming refund of the excess amount of sales tax input which remain unconsumed within three months.
- Registered taxpayers who acquire tax paid inputs used in the export of goods, local supply of which is exempt under the sales tax act 1990.
- If an amount of sales tax paid unintentionally or by mistake.
- If an amount paid on demand of the department, but subsequently the demand set aside by any competent authority, Tribunal or Court.
How to file / claim sales tax refunds ?
Monthly sales tax returns submitted treated as a refund claim. With supportive documents including the required information in the format or software.
No refund claim shall be entertained if the taxpayer fails to submit the claim on the prescribed software along with the evidences and other information within sixty days of the filing of sale tax return.
Documents required for submission of sales tax refunds
The sales tax refund documents are submitted to the Refund Division of Collectorate, RTO or Large Taxpayer Unit (LTU).
Sales tax refunds documents along with evidences / supporting documents on prescribed format or software are submitted.
- Input tax invoices.
- goods declaration for import.
- Output tax invoices.
- Summary of invoices for local zero rated goods.
- Goods declaration for export (quadruplicate copy), airway bill or railway receipt, examination report. If claims are by persons other than manufacturer-cum-exporter of goods zero-rated.
Provided that in case of imports or exports processed through WeBOC, submission of goods declaration shall not be required and cases shall be processed by cross- matching of the declarations with the data available in the system.
- Copy of bill of lading, airway bill or railway receipt for verification of the goods taken out of Pakistan.
- Statement of the tax paid inputs, in respect of which refund claimed by the claimants other than the manufacturers of the goods zero-rated for supplies.
- A commercial exporter shall also submit bank credit advice issued by the bank.
Sales tax refund process
The sales tax refunds claim filed / submitted under section 66 of the Sales Tax Act, 1990.
The taxpayer shall submit an application for sales tax refund indicating:
- his name,
- registration number,
- the amount of sales tax refund claimed and
- reasons for seeking such refund along-with following documents:
- Input tax invoices in respect of which refund claimed;
- Proof of payment of input tax claimed as refund; and
- Copy of the relevant order on the basis of which refund claimed.
The sales tax refund allowed after verification that:
- no adjustment or refund of input tax claimed earlier and
- that the goods duly accounted for in the inventory records and
- the invoices claimed validated by the CREST (Computerized Risk – Based Evaluation of Sales Tax) System of FBR.
Online payment of sales tax refunds
Online System for online payment of Sales Tax refunds available, the taxpayers can update their IRIS profile for availing such facility. After updation of profile, taxpayer may avail electronic transfer facility of sales tax refunds.
For above purpose, Bank account details area in the system needs to update Bank’s IBAN number of bank account. Steps to add new Bank Account