Services
Registration in Sales Tax
Documents Required
Sales Tax Registration
As per the Sales Tax Act applicable in Pakistan Following persons are liable to be registered in Federal Board Revenue (FBR) under the Sales Tax Act.
- A manufacturer, except one classified as a cottage industry
- An importer
- An exporter
- Every Wholesaler, dealer, distributor
- A Tier-1-Retailer (As defined in section 2(43A)- Tier-1 retailers)
Consequences
The above-mentioned persons are required to register under the Income Tax Ordinance. If anybody is required to registered and does not register himself, he has to face the following consequences;
- Penalty of PKR 10,000, or 5% of the tax payable for the period during which the default continues.
- Disallowance of Input Tax Adjustment for purchases or business expenses made during the non-registration period.
- Inability to Issue Sales Tax Invoices
- Imposition of Further Tax (certain conditions applied
- Restrictions on Imports and Exports
Documents Required
The registration of sales tax with the FBR requires the following documents
For Individuals/Proprietors:
- Copy of the Computerized National Identity Card (CNIC) of the applicant.
- Bank account maintenance certificate or account statement.
- Proof of business address (utility bills, rent agreement, or ownership documents).
- Details of business activity and premises.
- Recent photograph of the proprietor.
For Partnerships:
- Partnership deed and CNICs of all partners.
- Registration certificate of the partnership firm.
- Bank account maintenance certificate or account statement.
- Proof of business address and business activity details.
For Companies:
- Memorandum and Articles of Association.
- Incorporation certificate issued by SECP (Securities and Exchange Commission of Pakistan).
- CNICs of all directors and principal officers.
- Bank account maintenance certificate or account statement.
- Proof of business premises (utility bills, rent agreement, or ownership proof).
This registration ensures proper identification by tax authorities. It formalizes businesses within the tax system, promotes economic transparency, and helps broaden the tax base for revenue generation.
Disclaimer
The information available on this website is for general guidance only and does not constitute legal or professional advice. Decisions made based on this content are at your own risk, and we are not liable for any consequences. For specific advice, please contact at [email protected].