According to the Sales Tax Act of 1990, everyone who engages in making taxable supply in Pakistan, including zero-rated sales, in the course or advancement of any taxable business that he engages in falls into one of the following categories: register if they haven’t done so before.
Such a person must register for tax via the following process, which the Federal Board of Revenue (FBR) posted on its official website.
On RTO’s e-file portal, you can also electronically submit the application. The concerned person should appropriately fill out Forms columns following the instructions included with the Form.
Upon verification, the Regional Tax Office will issue a registration certificate with a registration number, which will be mailed to the registered person on a designated form.
Office typically confirms the contents using the data at its disposal. Still, it has the power to request that a registration office inquiry be made to confirm the details of a declaration made by a person. The office may reject the application within fifteen days of the date it was received in total, with notification to the applicant and a list of the grounds for the decision.
Tax registration is a mandatory process for every business in Pakistan. It is important to know the tax laws and regulations of the government to avoid any confusion and to avoid further penalties. The following article will help you find out which information you need to register for tax.
Information Required For Sales Tax Registration
Tax registration in Pakistan is a complex process that requires the filing of several documents. If you are a small business owner or employer, you need to register under the Sales Tax Act 2000 and file several documents before you can start operating your business. Here is a list of documents you need to register for a sales tax return in Pakistan.
- Complete company name
- Nature, primary operation, or service of the business;
- Complete address of the head office, together with information on all company units, godowns, outlets, phone numbers, fax machines, and email addresses.
- With name and address, all Bank account numbers.
- NTN (National Tax Number)
- The NIC (National Identity Card) of the business’s owner, partners, or directors (passport number in case of foreigner).
- A company’s registration number and incorporation date.
- Every director and AOP member must complete the Form.
- The start date of the company and the actual money used.
It is also essential to clarify how business records are maintained. The FBR advises customers to request invoices/receipts with Sales Tax Registration Numbers (STRN) on purchases of goods and services due to customers being charged Sales Tax (ST) but not having it deposited into the national budget.
According to The Federal Board of Revenue (FBR) , many suppliers of goods and services are charging tax on invoices and receipts while failing to include their Sales Tax Registration Number (STRN) on these documents. The National Tax Number (NTN) may occasionally demonstrate the supplier’s registration on invoices.
The FBR advises customers to request invoices and receipts with Sales Tax Numbers (STRN) when purchasing products and services. Only if the supplier is registered for tax purposes and displays the Sales Tax Registration Number (STRN) on the invoice/receipt supplied to the client is the tax recoverable from the buyer.
The Sales Tax Registration Process In Pakistan
Sales tax is an indirect tax that is levied on the sale of goods and services. It is levied at both state and federal levels in Pakistan. With the right resources and a clear understanding of the tax structure in Pakistan, you can make the process a little easier and more efficient. This article will guide you through the sales tax registration process in Pakistan.
- Select Form 14(1) in the Registration Tab at the top of the screen when using IRIS Portal. The system will ask you the following questions after you choose the option:
- Tax Year, such as 2022
- Enter your type of person—whether you’re a manufacturer or not—under Individual Business. Pick one from the list.
- Please provide information about the Principle Officer and Authorized Representative for the Partnership Firm, AOP, and Company.
- The certificate of bank account maintenance with the IBAN.
- Enter your business’s information, such as name, activities, address, etc.
- GPS-tagged images of commercial real estate
- Send a picture of your utility bill and the unique consumer number on your gas and electricity bills.
After filling out Application Form 14(1) in its entirety, you will receive a temporary tax number valid for 30 days. Learn more about the sale of timber on tax return.
Verification Of Biometrics
For biometric verification, you must go to the NADRA E-Sahulat Center within 30 days of receiving your Registration Number. If Biometric verification fails, your sales tax registration will be canceled. Moreover, the related officials will also remove your name from the list of active taxpayers for tax.
For our cherished clients, we at CMA Law Associates have been successfully registering and filing tax reports so they can take advantage of various tax incentives in Pakistan. Additionally, we assist clients in disputes involving Custom, FBR, and PRA tax audits. We also offer our services regarding tax collection cases, waivers of penalties, and tax appeals. Additionally, we acknowledge the individuality of each case and have a thorough understanding of the legal and procedural difficulties involved in Tax disputes. Therefore, we look for solutions that give our clients the best chance of quickly achieving their objectives.