A step-by-step walkthrough on obtaining your Sales Tax Registration Number, filing monthly returns on FBR, and navigating provincial sales tax obligations.
Sales tax in Pakistan is a consumption-based tax levied on goods and services. For businesses manufacturing, importing, or supplying taxable goods, registration with the Federal Board of Revenue (FBR) for a Sales Tax Registration Number (STRN) is mandatory once your annual turnover exceeds PKR 10 million. Understanding the process ensures smooth compliance and avoids costly penalties.
Who Must Register?
Manufacturers, importers, wholesalers, distributors, and retailers exceeding the threshold must register. Additionally, businesses providing taxable services in Islamabad Capital Territory must register with FBR, while those operating in Punjab, Sindh, KP, or Balochistan register with the respective provincial revenue authority — PRA, SRB, KPRA, or BRA.
How to Obtain STRN
Registration is done online through the FBR IRIS portal. You need your NTN, CNIC, business registration documents, bank account details, and utility bills for your business premises. FBR may conduct a premises verification before issuing the STRN. The process typically takes 7–15 working days.
Monthly Sales Tax Returns
Registered persons must file monthly sales tax returns by the 18th of the following month. The return includes output tax collected on sales, input tax paid on purchases, and the net tax payable or refundable. Annexures detailing all invoices (both sales and purchases) must be attached. Late filing attracts a penalty of PKR 5,000 plus 0.1% of turnover per day.
Provincial Sales Tax on Services
Services are taxed by provincial authorities. For example, SRB levies sales tax on services provided in Sindh at rates varying from 13% to 15%. IT services, freelancing, and software exports enjoy reduced rates or exemptions under certain conditions. Each province has its own portal, filing deadlines, and compliance requirements.
Input Tax Credits & Refunds
Businesses can claim input tax credits on purchases used in taxable supplies. Exporters can claim refunds on input tax as their exports are zero-rated. The refund process requires meticulous documentation — invoices, bank statements, export documents, and customs records. WeFile ensures your refund claims are properly documented for smooth processing.
WeFile Sales Tax Services
Our taxation team handles STRN registration, monthly return preparation and filing, input tax reconciliation, and refund claims. We ensure your sales tax compliance is accurate and timely across both federal and provincial jurisdictions.