The Federal Board of Revenue (FBR) has launched a new system to automatically check sales tax returns and inform taxpayers about errors or discrepancies found in their filings.

The system will review sales tax returns and other available taxpayer data to identify possible mistakes or mismatches.

If an issue is found, taxpayers can receive an online notice through the FBR’s IRIS system. They will have a chance to explain the issue, correct the mistake or take other necessary action before the FBR starts legal proceedings.

Taxpayers will be given at least seven days to respond.

If they do not respond, the FBR will send a reminder and provide another seven-day period to respond or correct the issue.

The system will keep records of discrepancies, notices sent to taxpayers and their responses. These details will also be available to the relevant Inland Revenue officer.

The officer will review the taxpayer’s response and decide whether further action is required under the Sales Tax Act, 1990 and related rules.

The new procedure was introduced through S.R.O. 1655(I)/2026 issued on September 25, 2026, amending the Sales Tax Rules, 2006.