Sale Tax Registration
Here we’ll see the process of sale tax registration with Federal Board Revenue (FBR). Before registration please note that Only those persons having active Iris Portal credentials can Register for Sales Tax. A good news for those people who want to get online sale tax registration in easy way, FBR introduced an Automated System for Sales Tax Registration w.e.f. July 1st, 2019, system allow of the person to sale tax registration through FBR Iris Portal . After that FBR provides a Tax Registration Number (STRN) or User ID and password, these credentials allow access to efile portal. After login into this portal the person select Form 14(1) (Form of Registration filed voluntarily through Simplified) (Sales Tax) from the Registration drop down menu. the person will be asked to furnish the following information after select FORM 14(1):
- Tax Period
- Sales Tax information, in case of:
- Individual, the type of registration, whether it is a Manufacturer or Non-Manufacturer
- AOP or Company, CNIC of the Member/Director/Principal Officer along with the type of registration, whether it is a Manufacturer or Non-Manufacturer
- Bank Account details that include the Bank Account Certificate issued by the bank in the name of the business
- Business details including Business Name, Acquisition Date, Capacity and Business Activity along with particulars of all branches in case of multiple branches at various locations
- GPS-tagged photographs of the business premises
- Registration / consumer number with the gas and electricity supplier along with pictures of utilities meter
- In case of Manufacturer, also the GPS-tagged photographs of machinery and industrial electricity or gas meter installed
On submitting the above information and documents, the system shall register the person for Sales Tax. Complete Sales Tax Registration procedure is provided in the link below:
Simplified Sales Tax Registration – Iris (Attached PDF File)
CATEGORIES REQUIREMENTS OF SALE TAX REGISTRATION
- Importer
- Manufacturer
- Wholesaler
- Distributor
- Retailer
- Exporter
Sale Tax Return
Sales Tax is a tax levied by the Federal Government under the Sales Tax Act, 1990, on sale and supply of goods and on the goods imported into Pakistan. Sales Tax on services is levied by the Federal Government under The Islamabad Capital Territory (Tax on Services) Ordinance, 2001.
Online Sales Tax Return can only be filed while logging into efile portal. Every person registered under the Sales Tax Act,1990, or the Federal Excise Act, 2005, is required to file a Sales Tax Return.
A Sales Tax return is the taxpayer’s document of declaration through which taxpayer not only furnishes the details of transactions during a tax period but also deposits his Sales Tax liability.
On the return form, the taxpayer declares for a particular tax period and respective input tax and output tax, at prescribed rate of Sale Tax. In case input tax exceeds output tax, the amount of refund claimed or excess input tax is also declared in the return.
A registered person shall file a single return for all the possible sectors that the registered person is operating in. Due date for the single return for the sectors would be the due date applicable to his major activity in terms of sales tax or federal excise duty payable.
Where a Sales Tax Return is not filed within a period of six months after the due date, the same shall be filed only after approval of the Commissioner Inland Revenue having the appropriate jurisdiction.
CATEGORIES OF SALES TAX RETURN
For different categories of taxpayers, monthly, quarterly or annual returns may be filed on prescribed format as follows:
MONTHLY RETURN:
Under the standard procedure a registered person is required to file monthly return Annexure C on 10th and Payment on 15th and return by the 18th day of the month following the period in which the supplies were made, in the designated Branches of National Bank of Pakistan. In case of certain categories as mentioned below Procedure has been devised to file return on monthly and quarterly basis.
QUARTERLY RETURN:
The taxpayers falling exclusively in the category of CNG required to file the return on quarterly basis.
ANNUAL RETURN:
A manufacturer is to file annual Sales Tax return, for a financial year by the 30th September of the following financial year.
FINAL RETURN:
If a person applies for de-registration, the person shall before such de-registration, furnish a final return to the appropriate Commissioner having jurisdiction in the at such time as directed by the appropriate Commissioner.