Updated Guidelines for Determining Sales Tax Liability for Fiscal Year 2025–26

• FBR has updated guidelines for sales tax liability for 2025 to 26
• Updates are part of amendments to the Sales Tax Act, 1990, revised through the Finance Act, 2025
• Section 7 outlines the framework for calculating tax liability focusing on offsetting input tax against output tax
• Registered persons can deduct input tax from output tax if proper documentation is maintained
• Valid tax invoices and customs-cleared documents are required for deductions
• Adjustments are allowed within six subsequent tax periods if not initially deducted
• FBR may issue special orders for deductions under specific conditions
• Federal Government can issue notifications for input tax deductions and impose restrictions on wastage
• Correct determination of sales tax liability is crucial for businesses to avoid penalties
• Updated law emphasizes documentation, compliance, and accurate reporting
• Disclaimer: Article is informational and not legal or financial advice

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.

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