Sales tax in Pakistan: rate, registration and filing
The 18% standard rate of Sales tax in Pakistan, who must register with Federal Board of Revenue (FBR), what a Sales tax invoice must show, and when returns and payments are due.
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Updated for 2026
Last reviewed September 2026
The rate
The standard rate in Pakistan is 18%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Registration becomes compulsory once taxable turnover passes the threshold Federal Board of Revenue (FBR) sets, measured over a rolling period. Below it, registration is usually voluntary, which makes sense if your customers are registered businesses that can reclaim what you charge.
Manufacturers and retailers above the thresholds in the Sales Tax Act must register; most service providers register with their provincial revenue authority instead.
How to register
Register with Federal Board of Revenue (FBR) on FBR IRIS portal using your NTN. Once registered you receive a Sales tax registration number or certificate, and from that date you must charge Sales tax on taxable sales, issue compliant invoices and file returns even when nothing is due.
Charging Sales tax on an invoice
Show the net amount, the Sales tax rate, the Sales tax amount and the gross total, with your registration number in the header. Prices quoted to consumers should include Sales tax; prices quoted to businesses usually exclude it and say so. The Pakistan calculator adds or removes Sales tax and shows the arithmetic.
Sales tax invoice with the seller's STRN and NTN, the buyer's NTN and tax shown separately; tier-1 retailers must integrate with the FBR POS system.
Filing and paying
Returns are periodic, most often monthly or quarterly, and report the Sales tax you charged less the Sales tax you paid on purchases. The difference is paid to Federal Board of Revenue (FBR) by the return deadline; a repayment is claimed when purchases exceed sales.
Monthly sales tax return on IRIS by the 18th of the following month, with the sales and purchase annexures by the 10th and payment by the 15th.
Penalties for getting it wrong
Late registration, late returns and late payment each attract penalties and interest with Federal Board of Revenue (FBR). Charging Sales tax while unregistered is an offence in most countries. If you missed the threshold, register now and declare the back period.
Questions people ask
How do I add Sales tax to a price?
Multiply the net price by 1.18. A Rs100 sale at 18% carries Rs18 of Sales tax and totals Rs118.
How do I remove Sales tax from a total?
Divide the gross by 1.18 to get the net, then subtract to find the tax. Dividing, not taking a percentage off, is the step people get wrong.
Should I register voluntarily?
If most of your customers are registered businesses, yes: they reclaim what you charge and you reclaim what you pay. If your customers are consumers, registration raises your prices by the tax rate or cuts your margin.
What if I am not registered?
Do not charge Sales tax and do not show a Sales tax line. State on the invoice that no Sales tax was charged. The generator prints that line when the toggle is off.
Written from published tax-authority guidance and reviewed on 2026-09-03. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Federal Board of Revenue (FBR) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Federal Board of Revenue (FBR).
🇵🇰 Pakistan
Tools for Pakistan
Invoices, quotations, purchase orders, credit notes and waybills in PKR, with Sales tax and the NTN on the document. Plus a Sales tax calculator and a salary tax calculator. Everything runs in your browser and nothing is uploaded.