Sales Tax Registration · PakistanBefore you register for sales tax, you need to know who you are registering with. In Pakistan, that depends on what you sell and where.
We register businesses with FBR for federal sales tax on goods and with the provincial authorities for sales tax on services, and prepare the evidence each one asks for.
Tax
At a glance
- Authorities
- Federal Board of Revenue (FBR) · Punjab Revenue Authority (PRA) · Sindh Revenue Board (SRB) · Khyber Pakhtunkhwa Revenue Authority (KPRA) · Balochistan Revenue Authority (BRA) · NADRA (biometric verification)
- Forms & references
- Form STR-1 (FBR)Sales Tax Act 1990Sales Tax Rules 2006, rule 5Provincial sales tax on services registration
- Goods
- FBR, on IRIS (Form STR-1)
- Services
- PRA, SRB, KPRA or BRA; FBR for Islamabad
- Verification
- Biometric at NADRA e-Sahulat; site checks for some
- After registering
- Monthly returns from the first period
Overview
What it is, and why it matters.
Sales tax in Pakistan has two systems. Sales tax on goods is federal, under the Sales Tax Act 1990, and registering with FBR gives you a Sales Tax Registration Number (STRN). Sales tax on services is provincial: PRA, SRB, KPRA and BRA each register service providers under their own law, and FBR handles services in Islamabad.
Federal registration is made on IRIS using Form STR-1. At the time of writing, FBR asks for a bank account certificate in the business name, gas and electricity consumer numbers, GPS-tagged photographs of the premises (and of machinery and industrial meters for manufacturers) and, for individuals, AOPs and single-member companies that are not manufacturers, a balance sheet showing business capital.
After registration, the owner, partners or director complete biometric verification at a NADRA e-Sahulat centre within a month, and individuals, AOP members and SMC directors re-verify every July. Registration also commits you to monthly returns from the first period, including months with no sales, so we make sure you are ready for that before the application goes in.
Who needs it
Who typically needs it.
- 01
Manufacturers
Required to register before making taxable supplies, unless they fall within the cottage industry exclusion.
- 02
Importers, wholesalers and distributors
Generally required to register for federal sales tax, and increasingly asked for an STRN by their buyers.
- 03
Tier-1 retailers
Larger retailers, as defined in the Sales Tax Act, must register and integrate their point-of-sale systems with FBR.
- 04
Service providers
Consultants, agencies, IT firms, contractors and others providing taxable services register with the province where the service is provided.
- 05
Suppliers to corporate buyers
Larger customers often need your sales tax invoices to claim input tax, and may withhold more from unregistered suppliers.
When you need it
The moments that usually trigger it.
- You are about to start manufacturing, importing or wholesaling taxable goods.
- A customer has asked for your STRN or sales tax invoices before placing an order.
- You have started providing taxable services in Punjab, Sindh, Khyber Pakhtunkhwa or Balochistan.
- You are expanding into another province and need a second registration.
- Your retail business has grown into the Tier-1 definition.
- Your registration was suspended because biometric verification was missed.
Scope
Exactly what we handle.
Our engagement letter lists these specifically, so you know what is included before any work begins.
- 01
Working out which authorities you must register with, based on your supplies and locations
- 02
Preparing Form STR-1 on IRIS and uploading the supporting evidence
- 03
Preparing the balance sheet of business capital required for non-manufacturers
- 04
Guiding you through biometric verification and any site visit
- 05
Provincial registration with PRA, SRB, KPRA or BRA
- 06
Responding to FBR or provincial requests for missing documents
- 07
Setting up compliant invoice formats and a first-return checklist
- 08
Reinstatement where a registration has been suspended or removed from the sales tax ATL
The process
How it runs, step by step.
Timings depend on the authority and on how quickly documents come together. We tell you what’s typical for your case at the start.
Start with a conversationScope the registrations
We look at what you sell, where you sell it and where you operate, then confirm which federal and provincial registrations you need.
Prepare the evidence
We gather bank, utility, premises and capital documents, and brief you on the GPS-tagged photographs FBR requires.
File the applications
We submit Form STR-1 on IRIS and the provincial applications on each authority’s portal.
Verification
You attend a NADRA e-Sahulat centre for biometric verification. Manufacturers may also have a site verification by FBR or a third party.
Ready to file
We confirm the registration, set up your invoice format and records, and diarise your first monthly return.
What we’ll need
The information to have ready.
A typical checklist. After the first conversation we send a version specific to your situation, so you don’t gather anything you don’t need.
Business identity
- NTN and IRIS access
- CNICs of the owner, partners or directors
- Certificate of incorporation or partnership deed
- Principal activity and a list of goods or services supplied
Premises and utilities
- Tenancy agreement or ownership documents
- Electricity and gas consumer numbers (industrial connections for manufacturers)
- GPS-tagged photographs of the premises, and of machinery for manufacturers
- Addresses of all branches, warehouses and factories
Financial
- Bank account certificate in the business name
- Balance sheet showing business capital, assets and liabilities (non-manufacturers)
- Recent sales and purchase records, if already trading
Please don’t email passports or bank statements. Once we’ve spoken, you’ll get access to a secure upload.
Common mistakes
Where this usually goes wrong.
The problems we are most often asked to fix, and what they tend to cost.
- Mistake 01
Registering with the wrong authority
Services registered only with FBR, or goods only with a province, leave the real obligation unmet and can lead to penalties for late registration.
- Mistake 02
Missing biometric verification
Without verification within a month, the registration can be taken off the sales tax Active Taxpayers List, which affects customers claiming input tax on your invoices.
- Mistake 03
Registering before you are ready to file
Returns start from the first period, including nil returns. Missed returns bring penalties, which the Finance Act 2026 increased.
- Mistake 04
Documents in someone else’s name
Utility bills in a landlord’s or relative’s name, or a personal bank account, are frequent reasons for queries and delays.
Worth knowing
The limits, stated upfront.
Approval, verification and suspension are decided by FBR and the provincial authorities; we cannot guarantee timing.
Biometric verification must be done by you in person at NADRA.
Registration conditions change often through SROs and provincial notifications, so we confirm the current checklist when we start.
Refund claims for exporters have extra requirements, which we scope separately.
Questions
Sales Tax Registration: frequently asked.
If yours isn’t here, ask us directly. We’ll answer in plain terms.
Ask a questionIs sales tax on services registered with FBR?
Only in Islamabad. Services provided in Punjab, Sindh, Khyber Pakhtunkhwa or Balochistan are registered with PRA, SRB, KPRA or BRA respectively, under each province’s own law.
What is the standard sales tax rate?
For goods, the federal standard rate is 18% at the time of writing, with different rates for some goods. Provincial rates on services vary by province and by service, so we confirm the rate for your supplies.
Can I register voluntarily?
Voluntary registration is possible, but it brings the same monthly filing and invoicing duties. It is usually worth it when your customers need to claim input tax on what they buy from you.
How long does registration take?
Online submission is quick once documents are ready, but FBR may review the application before approving it, and biometric verification must follow within a month. For most businesses the process takes days to a few weeks.
Do I need a separate registration for each province?
For services, generally yes, because each province registers service providers operating there. For federal sales tax on goods, one STRN covers the business, with branches declared on the registration.
What happens if I stop trading?
You keep filing monthly returns until the registration is cancelled. Once you have stopped making taxable supplies and settled any outstanding liability, we can apply for de-registration.
Related
Often needed alongside this.
The equivalent in our other countries
Speak with a consultant
Talk to us about sales Tax Registration.
Pick the closest match and we’ll take it from there. You’ll get a written scope and fee before any work begins.
Or use our three-step guide, or email hello@fiscorra.com