Pakistan Sales Tax

Section 1 — Quick reference

Quick reference table

Field	Value
Country	Pakistan (Islamic Republic of Pakistan)
Federal Sales Tax rate (goods)	18% (standard); 25% (luxury/sin goods); reduced rates via SRO
Provincial Sales Tax rate (services)	Varies: Sindh 13%, Punjab 16%, KP 15%, Balochistan 15%
Zero rate	0% (exports, certain essential goods via SRO)
Exempt	Basic food (unprocessed), education, healthcare, financial services
Return form	Federal: monthly via IRIS; Provincial: via respective portals
Filing portal	https://iris.fbr.gov.pk (IRIS — federal); SRB/PRA/KPRA/BRA portals (provincial)
Authority	Federal Board of Revenue (FBR) — goods; SRB/PRA/KPRA/BRA — services
Currency	PKR (Pakistani Rupee)
Filing frequency	Monthly (federal and most provincial)
Deadline	Federal: 18th of following month; Provincial: varies (typically 15th-18th)
Companion skill	vat-workflow-base v0.1 or later — MUST be loaded
Validated by	Pending local practitioner validation

• Federal/provincial split — Pakistan has SPLIT federal/provincial sales tax. Federal covers goods (FBR). Provincial covers services (SRB for Sindh, PRA for Punjab, KPRA for KP, BRA for Balochistan). A single business may file BOTH.

Conservative defaults

Ambiguity	Default
Unknown rate on goods	18% (federal)
Unknown rate on services	Apply province rate based on client location
Unknown input tax status	Not deductible
Unknown counterparty location	Domestic Pakistan
Unknown business-use proportion	0% recovery

Section 2 — Required inputs and refusal catalogue

Required inputs

• Minimum viable inputs — Minimum viable — bank statement for the month. Acceptable from: HBL (Habib Bank), UBL (United Bank), MCB (Muslim Commercial Bank), Allied Bank, Bank Alfalah, Meezan Bank, Standard Chartered PK, or any other. JazzCash and Easypaisa statements also accepted.
• Recommended inputs — Recommended — sales invoices, purchase invoices with supplier NTN/STRN, client's NTN and STRN.

Pakistan-specific refusal catalogue

• R-PK-1 — Provincial service tax complexity — Trigger: client provides services in multiple provinces. Message: "Multi-province service tax filing requires separate returns to each provincial authority. Please escalate for province-by-province analysis." (R-PK-1)
• R-PK-2 — Manufacturing under SRO regime — Trigger: client is a manufacturer with SRO-based reduced rates or exemptions. Message: "SRO-based manufacturing exemptions require gazette-level verification. Please escalate." (R-PK-2)
• R-PK-3 — Withholding agent (sales tax) — Trigger: client is a designated withholding agent for sales tax. Message: "Withholding agent obligations require tracking of certificates and deposits. Please escalate." (R-PK-3)
• R-PK-4 — Export-oriented units (EOU) — Trigger: client in export-oriented unit with zero-rating facility. Message: "EOU zero-rating requires SRO-level verification. Please escalate." (R-PK-4)

Section 3 — Supplier pattern library

3.1 Pakistani banks (fees — check)

Pakistani banks pattern table

Pattern	Treatment	Notes
HBL, HABIB BANK	EXCLUDE for bank charges	Financial service (provincial ST may apply)
UBL, UNITED BANK	EXCLUDE for bank charges	Same
MCB, MUSLIM COMMERCIAL	EXCLUDE for bank charges	Same
ALLIED BANK, BANK ALFALAH	EXCLUDE for bank charges	Same
MEEZAN BANK	EXCLUDE for bank charges	Same
STANDARD CHARTERED PK	EXCLUDE for bank charges	Same
INTEREST, LOAN, REPAYMENT	EXCLUDE	Out of scope

3.2 Mobile financial services

Mobile financial services pattern table

Pattern	Treatment	Notes
JAZZCASH, JAZZ CASH	EXCLUDE for transaction fees	Financial service
EASYPAISA, EASY PAISA	EXCLUDE for transaction fees	Same
NAYAPAY, SADAPAY	EXCLUDE for transaction fees	Same

3.3 Government (exclude)

Government pattern table

Pattern	Treatment	Notes
FBR, FEDERAL BOARD OF REVENUE	EXCLUDE	Tax payment
CUSTOMS, PAKISTAN CUSTOMS	EXCLUDE	Duty
SRB, SINDH REVENUE, PRA, PUNJAB REVENUE	EXCLUDE	Provincial tax payment
EOBI, SOCIAL SECURITY	EXCLUDE	Social security
SECP	EXCLUDE	Registration fee

3.4 Utilities

Utilities pattern table

Pattern	Treatment	Notes
K-ELECTRIC, KESC, LESCO, FESCO, IESCO	Domestic 18% (federal ST on electricity)	Electricity
SSGC, SNGPL	Domestic 18%	Gas
PTCL, JAZZ, ZONG, TELENOR, UFONE	Provincial service tax applies	Telecoms

3.5 SaaS and international services

SaaS and international services pattern table

Pattern	Treatment	Notes
GOOGLE, MICROSOFT, META, AWS	Self-assess (federal 18% on digital goods; provincial on services)	Non-resident
ZOOM, SLACK, CANVA, FIGMA	Self-assess	Same

3.6 Professional services

Professional services pattern table

Pattern	Treatment	Notes
AUDIT, CA FIRM, ACCOUNTING	Provincial service tax	Check province
LAW FIRM, ADVOCATE	Provincial service tax	Same
CONSULTANT, ENGINEERING	Provincial service tax	Same

3.7 Payroll and exclusions

Payroll and exclusions pattern table

Pattern	Treatment	Notes
SALARY, WAGES, TANKHWAH	EXCLUDE	Outside sales tax scope
OWN TRANSFER, INTERNAL	EXCLUDE	Internal
CASH WITHDRAWAL, ATM	TIER 2 — ask	Default exclude

Section 4 — Worked examples

Example 1 — Federal sales tax on goods at 18%

Input line: 05.04.2026 ; DOMESTIC BUYER LTD ; CREDIT ; Invoice PK-041 manufactured goods ; PKR 1,180,000

Reasoning: Manufacturer selling taxable goods. Federal 18%. Net = PKR 1,000,000, ST = PKR 180,000.

Example 1 worked table (FBR)

Date	Counterparty	Gross	Net	Tax	Rate	Authority	Default?	Excluded?
05.04.2026	DOMESTIC BUYER	+1,180,000	+1,000,000	180,000	18%	FBR	N	—

Example 2 — Provincial service tax (Sindh 13%)

Input line: 10.04.2026 ; CLIENT CO ; CREDIT ; Consulting fee ; PKR 226,000

Reasoning: Service in Sindh. SRB 13%. Net = PKR 200,000, Tax = PKR 26,000.

Example 2 worked table (SRB)

Date	Counterparty	Gross	Net	Tax	Rate	Authority	Default?	Excluded?
10.04.2026	CLIENT CO	+226,000	+200,000	26,000	13%	SRB	N	—

Example 3 — Export, zero-rated

Input line: 15.04.2026 ; US IMPORTER INC ; CREDIT ; Textile export ; PKR 5,000,000

Example 3 worked table (FBR)

Date	Counterparty	Gross	Net	Tax	Rate	Authority	Default?	Excluded?
15.04.2026	US IMPORTER INC	+5,000,000	+5,000,000	0	0%	FBR	N	—

Example 4 — Non-resident digital service

Input line: 18.04.2026 ; GOOGLE CLOUD ; DEBIT ; Cloud April ; PKR -50,000

Reasoning: Non-resident digital service. Self-assess federal 18%. Input credit if for taxable supplies.

Example 4 worked table (FBR)

Date	Counterparty	Gross	Net	Tax	Rate	Authority	Default?	Excluded?
18.04.2026	GOOGLE CLOUD	-50,000	-50,000	9,000	18%	FBR	N	—

Example 5 — JazzCash transfer fee

Input line: 25.04.2026 ; JAZZCASH ; DEBIT ; Transfer fee ; PKR -50

Example 5 worked table (—)

Date	Counterparty	Gross	Net	Tax	Rate	Authority	Default?	Excluded?
25.04.2026	JAZZCASH	-50	—	—	—	—	N	"Financial service"

Section 5 — Tier 1 classification rules (compressed)

5.1 Federal sales tax on goods — 18% standard. Manufacturers, importers, and specified retailers.

• Federal sales tax on goods — 18% standard. Manufacturers, importers, and specified retailers.

5.2 Provincial service tax — Varies by province (Sindh 13%, Punjab 16%, KP 15%, Balochistan 15%).

• Provincial service tax — Varies by province (Sindh 13%, Punjab 16%, KP 15%, Balochistan 15%).

5.3 Zero rate — Exports (federal). Input tax credit available.

• Zero rate — Exports (federal). Input tax credit available.

5.4 Exempt — Basic food (unprocessed), education, healthcare.

• Exempt — Basic food (unprocessed), education, healthcare.

5.5 Input tax credit — Federal: available on goods. Provincial: varies. Valid invoice with NTN/STRN required.

• Input tax credit — Federal: available on goods. Provincial: varies. Valid invoice with NTN/STRN required.

5.6 Blocked input — Personal consumption, entertainment, passenger vehicles.

• Blocked input — Personal consumption, entertainment, passenger vehicles.

5.7 Imports — Federal sales tax at customs. Provincial not applicable at import.

• Imports — Federal sales tax at customs. Provincial not applicable at import.

5.8 Reverse charge — Non-resident services: self-assess.

• Reverse charge — Non-resident services: self-assess.

5.9 Withholding — Designated agents withhold sales tax at prescribed rates.

• Withholding — Designated agents withhold sales tax at prescribed rates.

5.10 Further tax / extra tax — Additional levies on sales to unregistered persons.

• Further tax / extra tax — Additional levies on sales to unregistered persons.

Section 6 — Tier 2 catalogue (compressed)

6.1 Federal vs provincial split — Default: flag. Question: "Is this goods (FBR) or services (provincial)?"

• Federal vs provincial split — Default: flag. Question: "Is this goods (FBR) or services (provincial)?"

6.2 Province identification — Default: client's registered province. Question: "Which province is the service provided in?"

• Province identification — Default: client's registered province. Question: "Which province is the service provided in?"

6.3 SaaS entities — Default: self-assess federal 18%. Question: "Goods or services? Check invoice."

• SaaS entities — Default: self-assess federal 18%. Question: "Goods or services? Check invoice."

6.4 Cash withdrawals — Default: exclude.

• Cash withdrawals — Default: exclude.

6.5 JazzCash/Easypaisa transactions — Default: classify underlying transaction, not payment method.

• JazzCash/Easypaisa transactions — Default: classify underlying transaction, not payment method.

Section 7 — Excel working paper template

Per vat-workflow-base Section 3, with Pakistan fields: Federal output 18%, Zero-rated, Exempt, Federal input, Provincial output (by province), Provincial input, Net payable (federal), Net payable (provincial).

Section 8 — Bank statement reading guide

HBL, UBL, MCB exports CSV. PKR primary. JazzCash/Easypaisa exports also usable. Urdu descriptions possible. Internal transfers: exclude. Convert foreign currency at SBP rate.

Section 9 — Onboarding fallback

9.1 NTN/STRN — "What is your FBR NTN? Provincial STRN?"

• NTN/STRN question — "What is your FBR NTN? Provincial STRN?"

9.2 Province — "Where is the business registered?"

• Province question — "Where is the business registered?"

9.3 Registration type — "Federal (goods), provincial (services), or both?"

• Registration type question — "Federal (goods), provincial (services), or both?"

9.4 Filing period — Monthly. "Which month?"

• Filing period question — Monthly. "Which month?"

9.5 Exports — "Do you export?"

• Exports question — "Do you export?"

9.6 Credit brought forward — Always ask.

• Credit brought forward — Always ask.

Section 10 — Reference material

Sources

1. Sales Tax Act 1990 (federal, as amended). 2. Provincial sales tax acts (Sindh, Punjab, KP, Balochistan). 3. FBR IRIS portal. 4. SROs for exemptions and reduced rates.

Known gaps

1. Multi-province filing refused. 2. SRO-based manufacturing exemptions refused. 3. Withholding agent obligations refused. 4. Provincial rate changes frequent — verify before filing.

Change log

• v2.0 (April 2026): Full rewrite to Malta v2.0 ten-section structure. Federal/provincial split emphasized.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. All outputs must be reviewed by a qualified professional before filing.

The most up-to-date version is maintained at openaccountants.com.

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.