How can a listed person cancel turnover tax listing?

A listed person may apply in Form VAT-2.4 to the Commissioner for cancellation. The Commissioner, after due inquiry, may temporarily suspend the listing and later cancel it if justified.

What happens if a person’s turnover exceeds the registration threshold?

If turnover exceeds the VAT registration threshold, the Commissioner may cancel turnover tax listing and register the person as a VAT-registered taxpayer after a hearing.

What information is kept in the register of registered or listed persons?

The register contains the person’s name, address, business name, Business Identification Number (BIN), branch details, effective date of registration or listing, and current status.

When is the Business Identification Number (BIN) used?

BIN is used in imports and exports (except baggage imports), property registration, IRC/ERC issuance, supply to withholding entities, tender participation, enlistment, bond license approval, bank loan approval, and other cases as determined by NBR.

How to notify changes in business information?

A registered or listed person must notify the Commissioner within 15 days in Form VAT-2.6 about any changes such as business additions/removals, bank account updates, or branch opening/closing.

How to apply for change of business place?

The person must apply at least 15 days before the change using Form VAT-2.7 to the concerned Commissioner. If moving to another Commissionerate, dues must be cleared before approval.

VAT and Supplementary Duty Rules, 2016

Rules 9 to 13 (English Version)

9. Cancellation of Turnover Tax Listing

(1) A listed person under Section 11(1) may apply in Form VAT-2.4 to the Commissioner for cancellation of listing.

(2) Upon receipt of the application, the Commissioner shall, after due inquiry—

(a) If the reason is justified, temporarily suspend the listing and inform the applicant; or
(b) If not justified, or the application is incomplete, or otherwise inappropriate, provide an opportunity for hearing and then suspend or take other lawful action, informing the applicant.

(3) If listing is suspended, the listed person shall—

(a) Immediately refrain from all turnover tax-related activities; and
(b) Within 15 days of suspension, return the turnover tax certificate and copies to the Commissioner, settle any outstanding tax, and submit a final return in Form VAT-2.5.

(4) Within 15 days of submission of the final return, the Commissioner shall verify and cancel the listing upon satisfaction.

(5) If annual turnover exceeds the VAT registration threshold, the Commissioner, after hearing, shall cancel the turnover listing and register the person under VAT.

(6) If turnover tax listing is no longer required, the Commissioner may cancel the listing after inquiry and hearing.

(7) Even after cancellation, if dues or offences are discovered, relevant provisions of the Act shall apply as if the person were still listed.

10. Register of Registered or Listed Persons

(1) The Board shall maintain an accurate and updated register of all registered or listed persons, containing:

(a) Name and address;
(b) Business name(s), if any;
(c) Business Identification Number (BIN);
(d) Branch details with name, address, and BIN (if separately registered);
(e) Date of effect of registration or listing; and
(f) Current status of registration or listing.

(2) The updated register shall be published on the NBR website.

(3) In case of any change under Section 14 and Rules 12–13, the Board shall update the register accordingly.

11. Use of Business Identification Number (BIN)

Subject to Rule 117, the BIN shall be used in:

(a) All imports and exports except baggage imports;
(b) Property (land or building) registration;
(c) Import Registration Certificate (IRC) or Export Registration Certificate (ERC);
(d) Supply to withholding entities;
(e) Participation in tenders;
(f) Enlistment with organizations;
(g) Approval of bond licenses;
(h) Bank loan approval in favor of the person; and
(i) Any other cases determined by the Board.

12. Notification of Changed Information

(1) Under Section 14, every registered or listed person shall immediately notify the Commissioner of changes, including:

(a) Any change in information provided during registration or listing;
(b) Addition or removal of business type;
(c) Bank account changes;
(d) Opening or closing of branches;
(e) Other changes as determined by the Board.

(2) Such notification shall be given in Form VAT-2.6 within 15 days of change.

(3) If the changes require updates to Form VAT-2.3, the Commissioner shall issue a new VAT registration or turnover listing certificate reflecting the updated information.

13. Change of Business Place

(1) A registered or listed person intending to change business place shall apply at least 15 days before the change in Form VAT-2.7 to the Commissioner of the concerned Commissionerate.

(2) Upon verification, the Commissioner shall—

(a) In case of inter-Commissionerate transfer:
- (i) Determine any outstanding dues and inform the applicant; and
- (ii) Approve transfer to the new Commissionerate along with all records.
(b) In case of transfer within the same Commissionerate, transfer the registration and inform the applicant.