Sales Tax

Sales Tax is a tax levied by the Federal Government under the Sales Tax Act, 1990, on sale and supply of goods and on the goods imported into Pakistan. Sales Tax on services is levied by the Federal Government under Sale Tax Act 1990 .Sales Tax is an indirect tax that is imposed on the sale of goods and services within Pakistan. The Federal Board of Revenue (FBR) is responsible for the collection of Sales Tax in the country. If you are a business owner in Pakistan, it is important to understand whether you need to register for Sales Tax and what the registration process entails.

Sales Tax Number

The Sales Tax Act 1990 outlines the following persons who are required to register for Sales Tax in Pakistan:

Every person making taxable supplies locally is:

A manufacturer
Tier I retailers
An importer
An exporter (who intends to seek a refund against zero-rated supplies)
A wholesaler, dealer or distributor
Any person who is required under any provincial or Federal law to be registered for Sales Tax

Who Needs to Register for Sales Tax?

If you are not fall in above said categories, then ?

If you fall under any of the above categories, you are required to register for Sales Tax. Even if you do not meet any of the above criteria, you can still voluntarily register for Sales Tax. In fact, voluntary registration can bring several benefits to your business, such as becoming a more attractive supplier to larger businesses who only deal with registered suppliers.

Sale tax number is unique tax number like national tax number . Our Law firm provide you services regarding sales tax registration and modification or call us requirements, benefits, and filing procedures to help businesses navigate tax compliance effectively.

Step by step guide for registration of sale tax

Step 1: Register for NTN

Once you have obtained your NTN, you can apply for Sales Tax registration. You can do this by completing the Sales Tax registration form and submitting it to the relevant RTO or LTU. You will also need to provide supporting documents, such as your company's registration documents and bank statements.

Step 2: Fill in Balance Sheet for the Business

Step 4: Receive Your Sales Tax Registration Certificate

After submitting your application, the FBR will review your application and supporting documents. If everything is in order, you will receive your Sales Tax Registration Certificate within 15 working days.

Consequences of Not Registering for Sales Tax?

If you are required to register for Sales Tax but fail to do so, you can face several consequences. The FBR can impose penalties and fines on non-compliant businesses, and you may also be subject to legal action. Additionally, non-compliant businesses may face difficulties in securing contracts with larger businesses that only deal with registered suppliers.

Where Sales tax applicable ?

Goods

All goods are taxable except those that have been exempted under section 13 as mentioned under 6th Schedule of the Sales Tax Act, 1990. For sales tax purposes goods include every kind of movable property other than actionable claims, money, stocks, shares and securities.

Imports into Pakistan

All goods imported into Pakistan are liable to sales tax at the time of import, except goods specifically exempted under section 13 as mentioned in Sixth Schedule to the Act.

Exempt Goods

Under section 13 of The Sales Tax Act 1990, the Sixth Schedule of the Sales Tax Act, 1990 specifically and explicitly mentions those goods on which exemption of sales tax is available. Other exemptions are available through various notifications (SROs) issued by the Government under section 13.