Sales tax registration is a process through which a business becomes a registered taxpayer with the Federal Board of Revenue (FBR). The process is simple and straightforward, and can be completed online. This guide will walk you through the steps of sales tax registration in Pakistan.
The Sales Tax Act of 1990 states that the following categories apply to anyone who makes taxable supplies in Pakistan, including zero-rated sales, in the course or development of any taxable business that he engages in. If they haven’t registered before, they should.
The Federal Board of Revenue (FBR) published the following procedure on its official website for such a person to register for tax. You can also electronically apply through RTO’s e-file portal. The person in question should accurately complete the Form’s columns by following the directions.
A registration certificate with a registration number will be issued by the Regional Tax Office following verification and mailed to the registered person on a designated form. Usually, the Office verifies the information with the data at its disposal. Nevertheless, it has the authority to ask for a registration office investigation to be conducted to verify the specifics of a declaration made by a person. Within fifteen days of the application’s total receipt, the Office has the right to reject it, notifying the applicant and providing a list of why.
In Pakistan, registering for taxes is a requirement for all businesses. Knowing the government’s tax laws and regulations is essential to avoid misunderstandings and further fines. You can learn what information you need to register for taxes by reading the following text.
Information Needed To Register For Sales Tax
In Pakistan, registering for taxes is a complicated process that requires submitting numerous documents. Before you may begin operating your firm, you must register under the Sales Tax Act 2000 and submit several pieces of documentation if you are a small business owner or an employer. Here is a list of the paperwork required for sales tax registration in Pakistan:
- Complete business name
- the business’s nature, core business, or service;
- Complete main office address and data on all business divisions, god owns, outlets, phone numbers, fax numbers, and email addresses.
- All bank account numbers, together with name and address.
- The NIC (National Identity Card) of the business’s owner, partners, or directors serves as the NTN (National Tax Number) (passport number in case of a foreigner).
- Date of incorporation and registration number of a firm.
- Each director and AOP participant must fill out the Form.
- The company’s founding date and the amount of money spent.
Clarifying how corporate records are kept is also crucial. Due to the fact that customers are charged sales tax (ST), but it is not deposited into the national budget, the FBR urges clients to request invoices/receipts with STRNs on purchases of products and services.
The Federal Board of Revenue (FBR) asserts that many vendors include the tax on receipts and invoices while omitting to enter their Sales Tax Registration Number (STRN) on these records. The supplier’s registration may occasionally be shown by the National Tax Number (NTN) on invoices.
The FBR urges clients to ask for invoices and receipts bearing tax Numbers (STRN) when buying goods and services. One can only recover the tax from the buyer if the supplier has registered himself for tax purposes and lists the Sales Tax Registration Number (STRN) on the invoice or receipt given to the client.
The Sales Tax Registration Process in Pakistan
On the sale of goods and services, tax is an indirect tax which customs impose. In Pakistan, authorities process tax registration at both the state and federal levels. You may simplify the procedure with the correct tools and a thorough understanding of Pakistan’s tax laws. You can follow the instructions on this page to register for Pakistan’s tax return.
- When using IRIS Portal, choose Form 14(1) from the Registration Tab at the top of the screen. Following your selection of the option, the computer will query you on the following topics:
- A tax year
- Whether you are a manufacturer, select your category under Individual Business. Choose a name from the list.
- Please give details about the Partnership Firm, AOP, and Company’s Principal Officer and Authorized Representative.
- The IBAN-based bank account maintenance certificate.
- Please enter the details of your company, including its name, functions, address, etc.
- You need to provide the images of commercial real estate with GPS tags
- Attach a picture of your utility bill and your consumer number for gas and electricity bills.
Authorities will give you a temporary tax number for 30 days after completing Application Form 14(1).
Checking Biometric Data
Within 30 days of acquiring your Registration Number, you must visit the NADRA E-Sahulat Center for biometric verification. PRA will terminate your sales tax registration if biometric verification is unsuccessful. Additionally, the relevant officials will take your name off the list of current taxpayers.
CMA Law Associates has been successfully registering and filing tax reports for our cherished clients so they can benefit from different tax incentives in Pakistan. We also support clients in disagreements over Custom, FBR, and PRA tax audits. Moreover, we also provide our services for tax appeals, penalty waivers, and situations involving tax collection. Additionally, we also recognize the uniqueness of every case and have a thorough awareness of the obstacles that arise in tax disputes in terms of law and procedure. We search for solutions to give our clients the best possibility of promptly accomplishing their goals.