How to Register for Sales Tax in Pakistan

How to Register for Sales Tax in Pakistan

The Sales Tax Act of 1990 applies to nearly every business involved in the import, export, sale, and purchase of goods within its jurisdiction. This means that any individual or entity engaged in making taxable supplies, including zero-rated supplies, in Pakistan, such as importers, exporters, sellers, distributors, retailers, or wholesalers, is required to register for sales tax with the Federal Board of Revenue (FBR).

Essential Documents for Sales Tax Registration in Pakistan:

  • Bank Account Maintenance Certificate with IBAN Number
  • GPS-tagged Photos of Business Premises
  • Electricity Bill for Business Premises

The Procedure for Sales Tax Registration in Pakistan:

  1. Access the IRIS Portal: Navigate to the Registration Tab and select Form 14(1).
  2. Provide Necessary Information: Enter the Tax Period (e.g., 2023) and specify your business type (individual, partnership firm, AOP, or company). For partnerships, AOPs, and companies, provide details of the Principal Officer/Authorized Representative.
  3. Attach Required Documents: Upload the Bank Account Maintenance Certificate displaying the IBAN Number, along with business details like name, activities, and address. Also, include GPS-tagged photographs of the business premises.
  4. Utility Bill Information: Enter the unique Consumer Number from your Gas and Electricity Bill, and upload a picture of the utility bill.
  5. Submit Application: Complete the Form 14(1) with all necessary details and submit it.
  6. Temporary Sales Tax Number: Upon submission, you’ll be allotted a temporary Sales Tax Number valid for 30 days.

Biometric Verification:

After receiving the Registration Number, visit the E-Sahulat Centre of NADRA within 30 days for biometric verification. Failure to complete biometric verification will result in the cancellation of your Sales Tax registration, and your name will be removed from the Active Taxpayer list of Sales Tax.

For guidance on filing sales tax returns, refer to our guide on How to File Sales Tax Returns in Pakistan.

At Mithan Enterprises, we specialize in registering and filing sales tax returns for our clients, ensuring they benefit from various tax incentives in Pakistan. Additionally, we offer services for clients involved in disputes related to customs, FBR, and PRA tax audits, tax collection cases, penalty waivers, and tax appeals. With our expertise in legal and procedural matters concerning tax disputes, we tailor solutions to help our clients achieve their objectives efficiently.

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