HOW TO REGISTER FOR SALES TAX IN FBR PAKISTAN?

Sales tax registration in Pakistan is mandatory for certain businesses and service providers under the Sales Tax Act, 1990 and is governed by the Federal Board of Revenue (FBR). It ensures that taxable persons collect, report, and deposit sales tax on goods and services. The process is now largely digitized and can be completed via the FBR IRIS portal or mobile apps like Tax Asaan.

Below is the updated and detailed guide for Sales Tax Registration in 2025, along with eligibility criteria and the complete step-by-step process.

Who Must Register for Sales Tax in Pakistan (2025 Update)?

The following categories of persons are required to register for sales tax:

1. All Importers
   Any person or entity importing goods into Pakistan must obtain Sales Tax Registration.

2. All Wholesalers and Distributors
   Those engaged in wholesale business or supply chains including dealers and agents are required to register.

3. Manufacturers (Excluding Cottage Industry)
   A cottage industry is exempt if:

   • Annual turnover is less than PKR 10 million, and

   • Annual utility bills (electricity, gas, telephone) are less than PKR 800,000

4. Retailers – Especially Tier-1 Retailers
   Tier-1 retailers are defined as:

   • A retailer operating as a unit of a national/international chain

   • A retailer operating in an air-conditioned shopping mall, plaza, or center (excluding kiosks)

   • A retailer with annual electricity bills exceeding PKR 600,000

   • Wholesaler-cum-retailer engaged in bulk imports and direct-to-consumer retail sales

5. Service Providers under Federal or Provincial Laws
   Includes but is not limited to:

   • Hotels and Clubs

   • Caterers and Customs Agents

   • Ship Chandlers, Stevedores

   • Courier Services, Event Planners, etc.

6. Zero-Rated Suppliers
   Persons engaged in zero-rated supplies (e.g., exporters) who want to claim refunds must register for sales tax.

7. Persons Liable for Compulsory Registration
   A person falling under any of the above categories but failing to register voluntarily may be forcefully registered by the FBR under Rule 6(1) of Sales Tax Rules, 2006 after due inquiry.

Step-by-Step Process to Register for Sales Tax (Online – 2025)

Step 1: Visit the FBR Website
Go to https://www.fbr.gov.pk and click on the “e-Services” tab.

Step 2: Select “NTN/STRN Registration”
This section leads to the online registration portal to apply for both National Tax Number (NTN) and Sales Tax Registration Number (STRN).

Step 3: Create a User Account (if not already created)
Provide your CNIC, mobile number (registered in your name), and email address to create an account.

Step 4: Fill in the Online Application Form (Form 181)
Enter the following:

• Business information (type, name, address)

• Principal activity and sector

• Ownership or tenancy details of the premises

• Bank account details linked with the business

• Upload scanned documents (see list below)

Step 5: Upload Required Documents (PDF Format)
• CNIC/NICOP (for individuals)
• SECP Certificate (for companies)
• Partnership deed (for AOPs/firms)
• Business address proof (rent deed or ownership document)
• Recent utility bill (not older than 3 months)
• Bank maintenance certificate or account statement

Step 6: Verification and STRN Issuance
Once FBR verifies your documents and business activity, you will be issued:
• National Tax Number (NTN)
• Sales Tax Registration Number (STRN)

These credentials are available in your IRIS profile and emailed/SMS to you upon approval.

Step 7: Start Filing Monthly Sales Tax Returns
Sales tax registered persons must file monthly returns (Form STR-7) by the 15th of every month, even if there is no taxable activity during the month.

Alternate Methods of Registration (Mobile App – 2025 Update)

Sales Tax Registration is also available via:
• IRIS Mobile App (Available on Google Play and iOS)
• Tax Asaan App – Simple interface for both salaried and business users

These apps support registration, return filing, payment tracking, and real-time alerts. Detailed instructions for using these apps are available within the apps or on FBR’s official website.

Post-Registration Compliance

Once registered, the taxpayer must:
• Display the registration certificate at the business premises
• Issue Sales Tax Invoices with proper STRN
• Maintain proper books of accounts
• Submit accurate and timely monthly sales tax returns
• Make online payments of sales tax liability before filing the return