Sales Tax Registration and Monthly Returns

Sales tax in Pakistan is not one law. There is the federal Sales Tax Act 1990 covering goods, and separate provincial laws for services in Sindh, Punjab, KP, Balochistan and Islamabad Capital Territory. Depending on what you sell and where, you may need registration with one or more authorities. We help you figure out the right combination, get registered and stay compliant.

When You Need to Register

• Manufacturers of taxable goods with turnover above the threshold
• Importers of goods
• Retailers falling under Tier 1 as defined by FBR
• Wholesalers and distributors of taxable goods
• Service providers in Sindh (SRB), Punjab (PRA), KP (KPRA), Balochistan (BRA) or ICT (FBR)
• Anyone required to charge sales tax to a corporate customer that demands a tax invoice

Registrations We Handle

FBR Sales Tax Registration (STRN)

For goods sold anywhere in Pakistan and for services rendered from Islamabad Capital Territory. Includes biometric verification, business bank verification and post registration inspection where applicable.

Sindh Revenue Board (SRB)

For services rendered from a Karachi or other Sindh based office. Common for IT firms, consultants, restaurants, marketing agencies, event managers, transporters and freight forwarders.

Punjab Revenue Authority (PRA)

For services provided from Lahore and other Punjab based offices. Threshold, rates and exempted services differ from Sindh.

KPRA and BRA

For businesses operating from Khyber Pakhtunkhwa or Balochistan.

Monthly Return Filing

Once registered, a return is due every month on the eFBR or the respective provincial portal. Our monthly compliance service includes:

• Reconciliation of sales and purchase invoices
• Input tax review, disallowance identification and adjustment
• Preparation and filing of the return on the applicable portal
• Challan generation and payment tracking
• Handling short filing or nil filing where applicable

Refund Applications

Exporters, zero rated suppliers and certain service providers accumulate refundable input tax. We prepare STARR and FASTER refund applications, respond to deficiencies raised by the refund officer and pursue release of funds.

Notices and Audit Support

Sales tax notices are common, especially under section 25 (audit), section 11 (assessment) and section 38 (access to records). We draft replies, appear before the Deputy Commissioner and pursue matters through appeal where required.

Documents We Ask For

• NTN and CNIC of proprietor or directors
• Business bank account details
• Utility bill of business premises
• Rent agreement or ownership document for premises
• Bio metric verification of authorised person (visit to NADRA e-Sahulat centre)
• List of goods or services being supplied

FAQs

Can I register for sales tax if I work from home?

Yes, provided you can produce a utility bill and ownership or tenancy document for the address, and the location is verified during the post registration inspection.

Do I need FBR and SRB both?

If you supply goods anywhere in Pakistan and also provide services from Sindh, yes. Most single service providers based in Karachi only need SRB.

What if I filed nothing for several months?

We can file the pending returns as nil or with figures, whichever applies, and negotiate on the late filing surcharge. Continued non filing can lead to suspension and blacklisting, so this is best handled soon.