Sales Tax in Pakistan: FBR, PRA or SRB? Registration and Return Filing Guide

Understand sales tax in Pakistan: when to register with FBR, PRA (Punjab) or SRB (Sindh), the standard 18% rate, input tax adjustment and monthly return deadlines.

Sales tax is one of the most important compliance areas for Pakistani businesses. The standard rate on most goods is 18 percent, while services are taxed by the provincial authorities under their own laws. Choosing the right authority is the first step.

Which authority applies?

• FBR (federal): sales tax on supply of goods
• PRA (Punjab Revenue Authority): sales tax on services provided in Punjab
• SRB (Sindh Revenue Board): sales tax on services provided in Sindh
• KPRA and BRA: services in Khyber Pakhtunkhwa and Balochistan

A business that sells goods and also provides services may need to register with more than one authority.

How the system works

You charge sales tax on your sales (output tax) and claim credit for tax paid on purchases (input tax). The difference is paid to the government. Proper invoices with the supplier's registration number are essential to claim input tax.

Monthly return filing

Registered businesses file a sales tax return every month, normally due around the 15th of the following month. Late filing or wrong claims can lead to default surcharge, penalties and blocked input tax.

Good practices

1. Issue compliant tax invoices every time
2. Match purchase invoices with the supplier's filed returns
3. Reconcile books to the return before submission
4. Keep records for the period required by law

Use our calculator

The Pakistan Sales Tax tool on our site adds or extracts sales tax in seconds. For special rates, exemptions or sector-specific rules, speak to an adviser.

BIZEASE SOLUTIONS registers businesses with FBR, PRA and SRB and files monthly sales tax returns on your behalf.

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This article is general information, not legal, tax or financial advice. Rules and rates change, so confirm your situation with a qualified adviser.

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