The Federal Board of Revenue (FBR) has clearly laid down the procedure for sales tax de-registration under Rule 11 of the Sales Tax Rules, 2006, applicable for the tax year 2026. This rule applies when a registered person ceases business operations, becomes exempt from sales tax, or fails to comply with filing obligations. This guide explains who can apply, how to apply, timelines, restrictions, and legal consequences—in a simplified and interactive manner for easy understanding. ✅ Who Can Apply for Sales Tax De-Registration? You may apply for de-registration if: • You have ceased to carry on business • Your supplies become exempt from sales tax • You no longer meet the registration threshold • You intend to close operations permanently 🧾 Step-by-Step Procedure for De-Registration (Rule 11(1)) 🔹 Step 1: Online Application • Submit Form STR-3 through the FBR computerized system • Application must clearly state the reason for de-registration 🔹 Step 2: Commissioner’s Order • The Commissioner Inland Revenue may: o Act on your application, or o Initiate de-registration on his own motion • De-registration must be completed within 60 days, calculated from: o Date of application, or o Date of payment of all outstanding dues (whichever is later) 🚫 Restrictions After Applying for De-Registration Once the online application is submitted: • ❌ Annex-C and Annex-D cannot be filed • ❌ Sales tax returns cannot be filed • ❌ Input tax adjustment or refund is not admissible • ❌ Other registered persons cannot claim input tax on invoices issued by you during the de-registration period 👉 These restrictions apply until de-registration is finalized or rejected. 🔍 Audit or Inquiry by Commissioner (Rule 11(2)) If the Commissioner decides to verify your liabilities: • You may be required in writing to submit records • Audit or inquiry must be completed within 90 days from the date of application • Adjournments are excluded but total time cannot exceed 90 days 📌 Final Compliance Requirement • File a final sales tax return under Section 28 • Pay any…