Sales Tax Services in Pakistan

What is Sales Tax?

Sales Tax in Pakistan is a value-added tax (VAT) imposed under the Sales Tax Act, 1990, on the sale, import, and supply of goods and services. Managed by the Federal Board of Revenue (FBR), it applies to businesses with an annual turnover above PKR 10 million (for goods) or PKR 5 million (for services). The standard rate is 17%, with exemptions for certain sectors like agriculture.

Who Needs Sales Tax Registration?

• Businesses with taxable turnover exceeding PKR 10 million (goods) or PKR 5 million (services).
• Manufacturers, wholesalers, retailers, and importers dealing in taxable goods/services.
• Anyone wishing to issue tax invoices and claim input tax credits.

Benefits of Being a Sales Tax Filer

• Claim input tax credits on purchases, reducing tax liability.
• Enhance business credibility with tax invoices.
• Avoid penalties (e.g., PKR 10,000–200,000 for non-registration).
• Access government contracts and export benefits.

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Process to Register and File Sales Tax

Step 1: Sales Tax Registration

1. Visit the FBR Iris Portal (iris.fbr.gov.pk).
2. Click “Sales Tax Registration” under the e-Registration tab.
3. Provide business details (e.g., CNIC, NTN, business address).
4. Upload required documents and submit the application.
5. Receive a Sales Tax Registration Number (STRN) within 7–10 days (online) or via an RTO visit.

Step 2: Filing Sales Tax Returns

1. Log into the Iris Portal with your STRN and password.
2. Download the monthly/quarterly Sales Tax Return form.
3. Enter sales, purchases, and tax details.
4. Pay any tax due online via a linked bank account.
5. Submit by the 15th of the following month (e.g., return for June due by July 15th).
6. Verify filing status on the FBR portal.

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Required Documents

• For Individuals/Business Owners:
  • CNIC copy.
  • NTN certificate.
  • Proof of business address (e.g., utility bill or rent agreement).
  • Bank account details.
• For Companies/AOPs:
  • CNIC copies of all directors/partners.
  • Incorporation certificate (SECP-registered companies).
  • Partnership deed (if applicable).
  • Business license or registration proof.
• Additional (If Applicable):
  • Sales invoices and purchase records.
  • Import/export documents (if applicable).

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Charges for Sales Tax Services

• FBR Registration Fees: Free via the Iris Portal; PKR 500–1,000 if processed at an RTO.
• Penalties for Non-Compliance: PKR 10,000–200,000 for late registration; 0.1% daily penalty on unpaid tax (up to 25%).
• Consultancy Fees: Our services start at PKR 30,000 for registration and PKR 5,000/month for filing, with customized packages for businesses. We ensure compliance and optimize your tax obligations.

Why Choose Us?

At Sales Tax Consultancy, we simplify your sales tax journey:

• Expert registration and return filing.
• Maximized input tax credits and compliance.
• Timely submissions to avoid fines.
• Support during FBR audits and disputes.

Get started today—contact us to register your business and file sales tax effortlessly!