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Sales tax in Pakistan: federal and provincial guides
Sales tax turns on the supply, the place of supply and the registration regime — federal for goods, provincial for most services. These guides work through that fork before touching a rate.
The rule this topic turns on: Sales tax depends on the supply, place of supply, registration regime, applicable rate and documentary chain. Output tax and admissible input tax must be supported invoice by invoice.
In depthSales taxSales tax calculator for Pakistan: picking the right rate
Why 18% is the wrong default for many supplies, how to work out the rate that actually applies, and the checks to run before you quote.
In depthSales taxTax-inclusive vs tax-exclusive pricing in Pakistan
Both formulas worked at several rates, the margin error that comes from confusing them, rounding conventions, and how to word the pricing basis.
In depthSales taxSales tax registration in Pakistan: FBR and provincial
Whether to register with FBR or a provincial authority, when registration becomes compulsory, the documents needed, and what changes on day one.
In depthSales taxSTRN vs NTN in Pakistan: what each one does
What each registration authorises, why holding one does not imply another, and the sequence in which they have to be obtained.
In depthSales taxHow to file a sales tax return in Pakistan
The annexure structure, the monthly reconciliation to build before filing, nil returns, revision, and the differences that trigger enquiry.
In depthSales taxSales tax invoice requirements in Pakistan
The mandatory particulars, serial control, credit and debit notes, and why a customer input tax claim depends on getting the invoice right.
In depthSales taxInput tax and output tax in Pakistan explained
How the monthly sales tax position is computed, which inputs are claimable and which are blocked, apportionment, and carry forward of excess.
In depthSales taxSales tax refunds in Pakistan
When a refund is available rather than a carry-forward, the exporter position, the evidence a claim needs, and realistic expectations on timing.
In depthSales taxZero-rated vs exempt supplies in Pakistan
Why zero-rated and exempt supplies produce the same nil tax but opposite input tax outcomes, how to classify correctly, and what each means for pricing.
In depthSales taxThe sales tax Active Taxpayer List explained
Why the sales tax list is separate from the income tax ATL, what supplier status means for your input claim, and how to verify before you pay.
In depthSales taxFBR POS integration for retailers in Pakistan
Who has to integrate, what integration involves at the till, the Finance Act 2026 retailer scheme relief, and how POS differs from digital invoicing.
In depthSales taxFBR digital invoicing in Pakistan: what it requires
What digital invoicing requires, how integration works, what changes on the invoice itself, and the operational readiness work to do before your date.
In depthSales taxPreparing for a sales tax audit in Pakistan
The annexure-to-ledger tracing an audit performs, how to defend an input tax claim, and the file to build before you are ever selected.
In depthSales taxSales tax record retention in Pakistan
The statutory retention period, what counts as a record, electronic form and audit trail, and why routine destruction must stop during a proceeding.
In depthSales taxFederal vs provincial sales tax in Pakistan
Goods go to FBR, services to the provincial authority. How to classify mixed supplies, apply place-of-provision rules, and register correctly.
In depthSales taxSales tax on e-commerce in Pakistan
Marketplace operator registration, the simplified regime for non-resident digital service providers, platform withholding, and what a seller must account for.
In depthSales taxPunjab sales tax on services and PRA registration
The 16% standard PRA rate, the 5% reduced rate for IT and notified sectors, why input tax is blocked at the reduced rate, and how filing works.
In depthSales taxSindh sales tax on services and SRB registration
The 15% SRB standard rate, sector-specific and reduced rates, how registration and monthly filing work, and where Sindh differs from Punjab in practice.
In depthSales taxKhyber Pakhtunkhwa sales tax on services and KPRA
The KP rate, how the negative-list approach differs from other provinces, registration and returns, and what a business operating into KP needs to know.
In depthSales taxBalochistan sales tax on services and BRA
The Balochistan rate and regime, why project-based and resource-sector work makes this province distinctive, and how registration and returns work.
In depthSales taxSales tax on services versus goods in Pakistan
Why sales tax on services and on goods are administered separately: the federal-provincial split, which authority to register with, and mixed supplies.
In depthSales taxInput tax adjustment and apportionment in Pakistan
How input tax adjustment works: the output-minus-input mechanism, inadmissible input tax, apportionment for mixed supplies, and carry-forward.
In depthSales taxSales tax invoice format in Pakistan, field by field
A field-by-field layout for a compliant sales tax invoice, how the tax line is shown, sequential numbering, and how it feeds FBR digital invoicing.
In depthSales taxSales tax on stock transfers between branches
Moving goods between your own branches or warehouses is generally not a taxable supply. When separate registration changes that, and the records.
In depthSales taxReversing sales tax on returns and rejected goods
When goods are returned or rejected, the supply is reversed through a credit note and an output-tax adjustment. The time limit, and matching both sides.
In depthSales taxSales tax on advance payments and deposits
Under the time-of-supply rule a payment can trigger sales tax before delivery. How advances and booking amounts differ from refundable deposits.
In depthSales taxSales tax on trade discounts, rebates and incentives
A trade discount reduces taxable value only if shown on the invoice and in line with normal practice. How post-sale rebates and volume incentives differ.
In depthSales taxSales tax on goods lost, stolen or destroyed
There is no output tax on goods lost or destroyed, but input tax claimed on them may need reversing. The documentation and insurance recoveries.
In depthSales taxInput tax on damaged and obsolete inventory
Writing off unsaleable stock can require reversing the input tax claimed on it, and why selling damaged stock cheaply is still a taxable supply.
In depthSales taxSales tax on warranty replacements and repairs
A free warranty replacement already priced into the original sale is generally not a fresh supply. Paid repairs, parts, and the goods-service line.
In depthSales taxSales tax on consignment sales
On consignment, ownership stays with the principal until sale, so sending stock is generally not a supply. When the taxable supply actually happens.
In depthSales taxSales tax on principal-agent and commission deals
Where an agent sells for a principal, the goods supply is the principal while the commission is a separate taxable service. How both regimes apply.
In depthSales taxSales tax on hire-purchase and installment sales
For hire-purchase the time of supply is when the agreement is entered into, so tax is not spread over the instalments. How a credit sale differs.
In depthSales taxRenting and leasing goods: federal or provincial?
Renting or leasing movable goods is a service, the right to use goods, so it falls under provincial sales tax rather than the federal goods regime.
In depthSales taxSales tax on used and second-hand goods
A supply of taxable goods by a registered person is taxable new or used. When a dealer must charge, when a private sale is out, and vehicles.
In depthSales taxSales tax on scrap, waste and by-products
Scrap, waste and by-products are goods, so selling them is a taxable supply. Why some categories carry withholding, and the input tax already claimed.
In depthSales taxBundled goods and services: which sales tax?
When a supply combines goods and services the goods element is federal and the services element provincial. When to apportion, and dominant element.
In depthSales taxInput tax when the supplier has not deposited it
Input tax is not admissible where the supplier has not declared or paid it. How cross-matching, the active taxpayer check and joint liability bite.
In depthSales taxProvincial sales tax on software and IT services
Software and IT services are provincial services taxed by SRB, PRA, KPRA or BRA, with ICT under FBR. Reduced rates, and multi-province registration.
In depthSales taxSales tax on advertising and digital marketing
Advertising and digital-marketing are taxable provincial services. How agencies serving clients across provinces handle place of provision.
In depthSales taxProvincial sales tax for construction contractors
Construction and contractor services are taxable provincial services, often reduced-rate with conditions and subject to withholding. Where to register.
In depthSales taxSales tax for restaurants and food delivery
Restaurant, catering and food-delivery services are taxable provincially, often at a reduced rate for card payments. Delivery platforms explained.
In depthSales taxSales tax for hotels, guest houses and venues
Hotel, guest-house and venue services are taxable provincial services. How accommodation, food and hall hire are taxed, and where relief applies.
In depthSales taxSales tax on transport, logistics and courier
Carriage of goods, courier, freight-forwarding and logistics are taxable provincial services. Cross-province routes and the passenger-goods line.
In depthSales taxSales tax on medical and healthcare services
Core healthcare is often exempt or reduced provincially, but diagnostic, cosmetic and support services can be taxable. Telling which is which.
In depthSales taxSales tax on education and training services
Formal education is often exempt provincially, but commercial coaching, vocational training and professional courses can be taxable. Which is which.
In depthSales taxSales tax for accountants, lawyers and consultants
Professional and consultancy services are taxable provincial services at the standard rate. Place of provision, and multi-province registration.
In depthSales taxProvincial sales tax for security agencies
Security and guarding services are taxable provincial services, often subject to withholding. Why the taxable value is usually the full charge.
In depthSales taxSales tax on manpower and outsourcing services
Manpower supply, recruitment and outsourcing are taxable provincial services. Why the value may include staff salaries, and how recruitment differs.
In depthSales taxProvincial sales tax on insurance services
General insurance services are taxable provincial services, while life and health cover is often exempt. How agent and broker commission is treated.
In depthSales taxSales tax on banking and financial services
Fee-based banking, financial and payment services are taxable provincially, while core mark-up on financing is outside. The fee-financing line.
In depthSales taxSales tax on franchises, royalties and IP
Franchise fees, royalties and IP licensing are taxable provincial services. How cross-border royalties bring in withholding considerations.
In depthSales tax