Pakistan — Sales tax
|General VAT Rate||Other Rates||Local Currency|
|17%||24%, 19.5%, 18.5%, 18%, 10%, 8%, 6%, 5%, 4%, 3%, 2%, 1%, 0%||Rupee (PKR)|
Pakistan's general VAT rate is 17%, with other rates including 24%, 19.5%, 18.5%, 18%, 10%, 8%, 6%, 5%, 4%, 3%, 2%, 1% and 0% that can apply to certain transactions. The Sales tax is administered by the Federal Board of Revenue (http://www.fbr.gov.pk) in Islamabad.
Pakistan's General Sales Tax (GST) is 17%, with a 14%-16% tax applying to services.
Pakistan's consumption tax is called the Sales tax, which was introduced in November 1990.
Pakistan Sales tax rates for 2018
- 17% for goods, 16%, 15% and 14% for services
- 1%, 2%, 3%, 4%, 5%, 6%, 8%, 10%
- 24%, 19.5%, 18.5%, 18%, zero-rated and exempt
Pakistan Sales tax number format
Businesses in Pakistan that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the Federal Board of Revenue, and will follow a certain format. The Sales tax number format is 11-11-1111-111-11 and 1111111-1 with prefix (S, P, K or B).
Pakistan Sales tax return periods
Businesses in Pakistan that are required to collect tax from consumers must file regular tax returns with the Federal Board of Revenue in Islamabad. Pakistan's Sales tax return periods are:
Monthly, quarterly and annual
Pakistan Sales tax Thresholds
These are the revenue thresholds at which businesses in Pakistan are required to start collecting and remitting tax.
- PKR5 million or utility bills exceed PKR800,000
- Special provisions apply
Recovery of sales tax by non-established businesses
Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in Pakistan are not required to collect taxes from the consumer.
Pakistan VAT Refunds
Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the Pakistan VAT refund program, more info can be obtained from the Federal Board of Revenue.
Pakistan Tax Sources & Citations
- EN: Pakistan Value Added Tax
- RU: НДС
- CN: 增值税
- Pakistan Federal Board of Revenue (http://www.fbr.gov.pk)
- Ernst & Young global VAT tax study, Pakistan (updated 2018)
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