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- All Import Businesses
- Every company or individual bringing goods into the country must register
- Wholesale Operations & Distributors
- This includes all dealers, wholesalers, and distribution companies
- Anyone selling products in bulk to retailers or other businesses
- Manufacturing Companies (Excluding Small Cottage Industries)
- Large-scale manufacturers must register
- Small cottage industries are exempt if they meet specific criteria:
- Annual sales from taxable goods stay under 10 million rupees
- Monthly utility bills (electricity, gas, phone) don’t exceed 800,000 rupees annually
- Tier-1 Retail Stores
- Chain stores (national or international brands)
- Shops in air-conditioned malls, plazas, or shopping centers (kiosks excluded)
- Retailers with electricity bills exceeding 600,000 rupees in the past 12 months
- Dual-operation businesses that sell both wholesale and retail
- Service Providers Under Provincial/Federal Tax Laws
- Hotels and hospitality businesses
- Private clubs and catering services
- Customs agents and shipping companies
- Courier and delivery services
- Stevedores and ship chandlers
- Zero-Rated Supply Businesses
- Companies dealing in tax-exempt products
- Commercial exporters seeking sales tax refunds on their zero-rated supplies
- Mandatory Registration for Non-Compliant Businesses
- The tax department can force registration on qualifying businesses that avoid signing up
- This happens after proper investigation under Sales Tax Rules 2006 (Rule 6, sub-rule 1)
- Getting Started with Sales Tax Registration
- Registration is Your First Priority
- Before you can file any sales tax returns, you must register with the Federal Board of Revenue (FBR)
- This isn’t optional – it’s the mandatory first step for all qualifying businesses
- What You’ll Receive After Registration
- A unique Sales Tax Registration Number (STRN)
- Login credentials (User ID and password) for online access
- These details become your gateway to the digital tax system
- Access to the efile Portal
- Your STRN and login credentials unlock the efile portal
- This online platform is the only way to submit your sales tax returns
- No paper filing options – everything happens digitally
- Modern Registration Through Iris Portal
- Since July 1st, 2019, all sales tax registration happens through the automated Iris Portal system
- This streamlined process has replaced older manual registration methods
- The system is designed to make registration faster and more efficient
- Essential Requirement for Registration
- You must have active Iris Portal credentials before starting
- Without these working credentials, you cannot proceed with sales tax registration
- Make sure your Iris account is functional and accessible before beginning the process
- Getting Started on Iris Portal
- Use your existing Iris Portal login credentials to access the system
- Navigate to the Registration dropdown menu
- Select “Form 14(1) (Form of Registration filed voluntarily through Simplified) (Sales Tax)”
- Basic Information Required
- Choose your tax period preferences
- Specify your business type: Manufacturer or Non-Manufacturer
- For companies/AOPs: Provide CNIC details of directors, members, or principal officers
- Individual applicants only need to select their registration type
- Financial Documentation
- Submit complete bank account details for your business
- Provide an official Bank Account Certificate issued by your bank
- Ensure the certificate is in your business name exactly
- Business Profile Details
- Enter your official business name and acquisition date
- Describe your business capacity and main activities
- List all branch locations if you operate multiple outlets
- Visual Documentation Requirements
- Take GPS-tagged photos of your business premises
- Photograph your electricity and gas meters
- Include utility registration/consumer numbers
- Additional for Manufacturers: GPS-tagged photos of machinery and industrial meters
- System Processing
- Once you submit all information and documents, the system automatically processes your registration
- You’ll receive confirmation of successful registration
- Mandatory Biometric Verification
- Visit any NADRA e-Sahulat Centre within 30 days of registration
- Complete biometric verification to stay on the Active Taxpayer List
- Failure to verify results in automatic removal from the active list
- Multiple NADRA centers are available for your convenience
- Additional Verification for Manufacturers
- FBR may conduct post-registration verification through field offices
- Third-party verification may also be required
- Field officers will scrutinize all submitted documents
- If any document is found fake or incorrect, you’ll have 15 days to provide correct documentation
- Non-compliance leads to removal from the Active Taxpayer List
- Mobile Registration Alternative
- Complete registration using the Tax Asaan Mobile Application
- Same process, more convenient mobile interface
- Detailed mobile registration guide available within the app
- Mandatory Change Notifications
- You must inform the Regional Tax Office (RTO) within 14 days of any changes
- This applies to changes in business name, address, or other details listed on your registration certificate
- Use the prescribed form provided by FBR for all change notifications
- Late reporting may result in penalties or compliance issues
- What Changes Must Be Reported
- Business name modifications
- Address changes (main office or branch locations)
- Any other particulars mentioned in your original registration certificate
- Contact information updates
- Ownership or partnership changes
- Special Requirements for Business Category Changes
- Changing your business category requires additional verification steps
- The RTO must physically verify your manufacturing facility
- Electricity and gas distribution companies must confirm your status as an industrial consumer
- This process ensures legitimate business operations and prevents tax evasion
- Verification Process for Category Changes
- Submit your change request through the prescribed form
- Wait for RTO field inspection of your manufacturing setup
- Provide utility bills and industrial consumer certificates
- Allow time for verification with electricity and gas companies
- Category change approval only comes after successful verification
- Compliance Timeline
- Report changes within 14 days of occurrence
- Category change verification may take several weeks
- Continue operating under your current registration until approval
- Keep all supporting documents ready for verification
- When You Need to Transfer Registration
- Moving your business from one Regional Tax Office (RTO) or Large Taxpayer Unit (LTU) jurisdiction to another
- Relocating business operations to a different geographic area
- Any other valid business reason requiring jurisdiction change
- Application Process
- Submit a formal transfer application to your current RTO
- Provide valid reasons for the transfer request
- Include supporting documents for your business relocation or change
- RTO Authority and Conditions
- The RTO has full discretion to approve or reject transfer requests
- They may impose specific conditions, limitations, or restrictions
- Transfer approval comes through an official order from the RTO
- All terms must be followed to maintain active registration status
- Important Filing Requirement
- File your sales tax return for the transfer period with your original RTO/LTU
- Don’t file with the new office until transfer is officially completed
- This ensures proper tax record continuity and compliance
- Key Reminder
- Complete all pending obligations with your current RTO before requesting transfer
- Transfer approval is not automatic – valid justification is required
- Maintain all documentation throughout the transfer process
Consolidating Multiple Sales Tax Registrations
- When Multiple Registrations Occur
- Some businesses may accidentally obtain multiple sales tax registration numbers
- This can happen due to different business locations, category changes, or administrative errors
- Multiple registrations create compliance complications and reporting confusion
- Application for Single Registration
- Submit a consolidation request to your preferred RTO or LTU
- Choose the tax office that best serves your main business operations
- Provide details of all existing registration numbers you want to merge
- Verification and Assessment Process
- The chosen RTO/LTU will contact all other tax offices where you’re registered
- They’ll verify your tax liabilities and compliance status across all registrations
- Any outstanding dues or penalties must be cleared before consolidation
- This ensures no tax obligations are overlooked during the merger
- Revised Registration Certificate
- Once verification is complete, you’ll receive a new single registration certificate
- All previous registration numbers will be officially merged into one
- The new certificate becomes your sole identifier for all future tax filings
- Previous registration numbers become inactive but remain linked in the system
- Benefits of Consolidation
- Simplified tax filing with one registration number
- Easier compliance tracking and management
- Reduced administrative burden for your business
- Clear audit trail for tax authorities
Sales Tax Deregistration Process
- Application Submission
- Submit deregistration application to the Commissioner Inland Revenue in your jurisdiction
- Ensure all outstanding tax dues are fully paid before or with your application
- The process officially begins once both application and payments are complete
- Processing Timeline
- Deregistration occurs within 90 days of application submission
- If you have outstanding dues, the 90-day period starts after full payment
- The system automatically processes deregistration through the computerized system
- Who Can Apply for Deregistration
- Business Closure: Companies that have permanently stopped operations
- Exempt Supplies: Businesses whose products/services become tax-exempt
- Below Threshold: Companies whose annual turnover falls below the minimum registration requirement
- Key Requirements
- Clear all pending tax liabilities before applying
- File all outstanding sales tax returns
- Provide valid proof of business closure or changed circumstances
- Complete any pending audits or assessments
- Important Note
- Deregistration is not automatic – you must formally apply
- Operating below the threshold doesn’t automatically cancel your registration
- Ensure compliance with all tax obligations to avoid complications during deregistration
