Sales Tax Registration in Pakistan

Sales tax is an essential component of Pakistan’s tax system, imposed on the sale of goods and services within the country. It is a value-added tax levied at various stages of production and distribution, meaning that businesses must collect and remit sales tax to the Federal Board of Revenue (FBR). Understanding the process of sales tax registration is crucial for all business owners in Pakistan, as it ensures compliance with the law and offers various benefits, such as the ability to claim input tax credits. Who Needs to Register for Sales Tax in Pakistan? Sales tax registration is mandatory for businesses that meet certain criteria outlined by the FBR. Primarily, businesses with an annual turnover exceeding a specified threshold are required to register. This includes manufacturers, wholesalers, retailers, and service providers. The government has made it easier for businesses to register through an online portal, ensuring a streamlined process for compliance. Eligibility Criteria...