Which Authority Taxes You? The Starting Point of Sales Tax Registration In Pakistan
FBR and The Provinces Share Sales Tax Registration In Pakistan
Sales tax registration in Pakistan is with FBR for goods at a standard 18%, and with the province where services are provided — SRB, PRA, KPRA or BRA. Many businesses need more than one registration, and every registration needs a monthly return.
Call 0333 1127834 to map your sales tax registrations.
Sales Tax Registration In Pakistan: Five Authorities, One Business
Sales tax registration in Pakistan is split between the federal government and the provinces. FBR taxes goods under the Sales Tax Act, 1990, at a standard rate of 18%. Services are taxed by the province where they are provided: SRB in Sindh, PRA in Punjab, KPRA in Khyber Pakhtunkhwa and BRA in Balochistan, while services in Islamabad Capital Territory are administered by FBR. The first question in any sales tax registration in Pakistan is therefore not "how" but "where and with whom".
| Authority | Taxes | Standard rate | Law |
|---|---|---|---|
| FBR | Goods across Pakistan; services in Islamabad | 18% on goods | Sales Tax Act, 1990; ICT (Tax on Services) Ordinance, 2001 |
| SRB | Services in Sindh | 15% | Sindh Sales Tax on Services Act, 2011 |
| PRA | Services in Punjab | 16% | Punjab Sales Tax on Services Act, 2012 |
| KPRA | Services in Khyber Pakhtunkhwa | As notified | KP Sales Tax on Services Act, 2022 |
| BRA | Services in Balochistan | As notified | Balochistan Sales Tax on Services Act, 2015 |
Who Must Apply for Sales Tax Registration In Pakistan
Federal Sales Tax Registration In Pakistan (Goods)
- Manufacturers, other than cottage industry below the notified threshold.
- Importers and exporters claiming refunds.
- Wholesalers, distributors and dealers.
- Tier-1 retailers, who must also integrate their point-of-sale with FBR.
- Persons required to register by a notification or by the Commissioner.
Provincial Sales Tax Registration In Pakistan (Services)
Any person providing a taxable service from a place of business in a province must register with that province's authority. A company with offices in Karachi and Lahore providing taxable services in both normally needs both SRB and PRA registration.
What FBR Now Requires for Sales Tax Registration In Pakistan
- An active NTN and IRIS profile.
- Bank certificate for the business account; gas and electricity consumer numbers; branch details.
- Balance sheet showing business capital for non-manufacturers (since January 2025).
- For manufacturers, GPS-tagged machinery photographs and proof of industrial utility connections.
- Biometric verification of the authorised person at NADRA e-Sahulat within one month, and annual re-verification each July for individuals, AOP members and single-member company directors.
Step By Step Through Sales Tax Registration In Pakistan
- Map your activities: goods, services, or both, and in which provinces.
- Bring the NTN and IRIS profile up to date.
- Apply to FBR and/or the relevant provincial authority with documents.
- Complete biometric verification (FBR) and answer any queries or premises visits.
- Start issuing sales tax invoices and file monthly returns with each authority.
Common Mistakes In Sales Tax Registration In Pakistan
- Registering with FBR only when the business actually provides services taxable by a province.
- Registering in one province when services are provided from offices in two.
- Missing biometric verification and falling off the sales tax ATL.
- Buying from unregistered or inactive suppliers and losing input tax.
- Not filing nil returns in months with no sales.
Fees for Sales Tax Registration In Pakistan
| Service | What we do | Fee |
|---|---|---|
| Government fee (FBR and provinces) | — | Nil for registration |
| FBR sales tax registration | IRIS application, documents, biometric guidance | PKR 15,000 – 20,000 |
| Provincial registration (SRB, PRA, KPRA, BRA) | Taxability review, application, follow-up | PKR 15,000 – 20,000 |
| Multi-province registration | All authorities for one business | PKR 15,000 – 20,000 |
| Monthly returns | Federal and provincial returns, reconciliation | Based on the number of monthly sales invoices — negotiable |
Our fee for sales tax registration in Pakistan depends on the number of authorities, branches and activities involved.
How Taxocrate Handles Sales Tax Registration In Pakistan
- We map where your business needs to register and confirm the rates that apply.
- We prepare and file each application and follow up to approval.
- We guide biometric verification and set up compliant invoices.
- We file monthly federal and provincial returns from one team.
Related Taxocrate Guides
Frequently Asked Questions On Sales Tax Registration In Pakistan
Who Handles Sales Tax Registration In Pakistan?
FBR for goods (and services in Islamabad), and the provincial authorities for services: SRB in Sindh, PRA in Punjab, KPRA in Khyber Pakhtunkhwa and BRA in Balochistan.
What Is The Federal Sales Tax Rate?
The standard rate of sales tax on goods under the Sales Tax Act, 1990 is 18%.
Do I Need An NTN for Sales Tax Registration In Pakistan?
Yes. Federal and provincial registrations are created against the NTN.
Is Biometric Verification Required?
Yes, for FBR. The authorised person must verify at NADRA e-Sahulat within one month of registration; individuals, AOP members and single-member company directors re-verify every July.
Can One Business Need Registration With More Than One Authority?
Yes. A business supplying goods and services, or providing services from more than one province, may need FBR and several provincial registrations.
Is There A Fee for Sales Tax Registration In Pakistan?
No government fee is charged for registration. Professional fees apply if you use a consultant.
Official sources: Federal Board of Revenue and FBR IRIS, Sindh Revenue Board and Punjab Revenue Authority
Reviewed by: Syed Mohsin Ali Shah, Senior Consulting Lawyer
Published by: Taxocrate (Pvt) Limited
Last updated: 31 October 2026