- FBR clarifies time of supply rules for sales tax
- New guidelines included in the updated Sales Tax Act, 1990 effective for tax year 2025
- Time of supply for goods is when delivered or payment received, whichever is earlier
- For goods under hire purchase, time of supply is when agreement is signed
- Time of supply for services is when services are provided
- Part payments for taxable supplies must be reported in the tax period received
- Part payments for exempt supplies reported in the period exemption is withdrawn
- Clarifications aim to improve compliance and accuracy in sales tax reporting
- Businesses advised to review new guidelines to ensure correct tax submissions
- FBR aims to reduce administrative complexities and enhance transparency
- Taxpayers should consult the Sales Tax Act, 1990 or professional advice for implementation
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
