Sales Tax Registration

Broadly there are two main categories for sales tax

  1. Supply of Goods
  2. Supply of Services

The persons engaged in the supply of goods are required to get themselves registered in Federal Board Of Revenue (FBR), after the 18th amendment, the Sales Tax on supply of services is now provincial subject therefore registration in respective province’s revenue board is mandatory.

Who Is Required To Get Sales Tax Registration

As per Sales Tax Act following persons are required to get Sales Tax registration:-
Every person who is supplying taxable goods/services and the person is

  1. Importer
  2. Exporter
  3. Trader, Wholesaler, Manufacturer, professional, architectures, builders & developers, and other service providers, whose annual turnover is more than Rs. 5 Million.
  4. Retailer (Different categories are available for retailers)

Responsibilities of Sales Tax Registered Person

A Sales Tax registered person has to file monthly Sales Tax Returns, stating

  1. Sales Tax charged by him on his supplies (known as output tax)
  2. Sales Tax charged by his suppliers (known as input tax)
  3. Sales Tax withheld by his customers & Sales tax he has withheld from his suppliers.

The difference of output and input tax after adjustments of Sales Tax withholding is to be deposited into Government’s treasury, by 18th of every month.

A Sales Tax Registered person becomes

  1. Income Tax Withholding Agent
  2. Sales Tax Withholding Agent