How to file sales tax return in Pakistan

Filing sales tax returns in Pakistan is a critical responsibility for businesses operating in the country.

The Federal Board of Revenue (FBR) oversees the collection of sales tax, which applies to the sale of goods and services. Filing sales tax returns accurately ensures that businesses remain compliant with tax regulations, avoid penalties, and can claim input tax credits.

This guide will explain how to file sales tax returns in Pakistan and highlight important aspects like online sales tax return filing through the FBR portal, required documents, and common mistakes to avoid.

Who Needs to File Sales Tax Return in Pakistan?

Not every business in Pakistan is required to file a sales tax return. Companies involved in the sale of taxable goods or services that exceed the threshold set by the FBR must register for sales tax and file returns.

Businesses with an annual turnover exceeding PKR 10 million are obligated to register.

Additionally, certain businesses, like manufacturers, retailers, and importers, are mandated to file sales tax returns regardless of their turnover.

Requirements for Filing Sales Tax Return

Before you can file your sales tax return online in Pakistan, there are specific requirements to meet. You must be registered with the FBR as a taxpayer, and the following documents are necessary:

• National Tax Number (NTN)
• Sales tax registration certificate
• Sales and purchase records for the filing period
• Bank statements and receipts for tax paid

Once you’ve gathered these documents, you’re ready to proceed with online sales tax return filing via the FBR portal.

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Steps to File Sales Tax Return in Pakistan

Filing a sales tax return in Pakistan follows a straightforward process if done systematically. Below is a step-by-step guide:

1. Register with FBR: Ensure your business is registered for sales tax on the FBR website.
2. Log in to the FBR Portal: Access your account through the FBR’s online portal using your NTN and password.
3. Select the Tax Period: Choose the month or quarter for which you are filing the return.
4. Enter Sales and Purchase Data: Accurately input your sales and purchase figures. Ensure that all sales are documented, including zero-rated sales for exporters.
5. Verify Tax Calculation: Review the calculated output tax (tax on sales) and input tax (tax on purchases) to ensure accuracy.
6. Submit the Return: Once you verify the information, submit the return electronically. You will receive a confirmation receipt upon successful submission.

How to File Sales Tax Return Online via FBR Portal

To file a sales tax return online in Pakistan, the FBR has created a user-friendly process through its web portal. Here’s how to complete the FBR sales tax return process:

1. Access the FBR Portal: Visit the official FBR website (https://fbr.gov.pk) and log in using your NTN and password.
2. Navigate to e-File: Go to the e-File section, where you can select the “Sales Tax Return” option.
3. Input Sales Data: Enter the total sales made during the period, along with the amount of sales tax collected.
4. Input Purchase Data: Enter all the purchases made, especially those on which you’ve paid sales tax. The system will automatically calculate your input tax credit.
5. Review and Submit: Verify the figures, and once you are confident of their accuracy, submit the return. A confirmation message will be generated after submission.

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FBR Sales Tax Return Filing Deadlines

It’s crucial to submit your sales tax return in Pakistan by the deadlines specified by the FBR. Generally, sales tax returns must be filed on a monthly basis, with the filing deadline set at the 15th of each month for the previous month’s transactions.

Failure to meet this deadline can result in penalties and additional fines. In the case of quarterly filings, the deadline is at the end of the month following the end of the quarter.

Filing Adjustments and Sales Tax Refund Claims

You may be eligible to claim a refund if you’ve paid more sales tax than was required. To do this, you need to file for a sales tax refund through the FBR portal.

Ensure that your input tax and output tax are correctly adjusted during filing. Refund claims should be made only if all documentation, including receipts and invoices, is accurately maintained.

Sales Tax Return for Exporters in Pakistan

Exporters in Pakistan benefit from zero-rated sales tax on their goods. This means that while they must still file a sales tax return, the sales tax on exports is not charged.

However, all export transactions must be properly documented to claim the zero-rating status.

Exporters must also ensure that they are correctly filing for refunds on input taxes paid on goods used for export.

You must know about these 8 benefits of hiring a tax consultant.

Hiring a Professional for Sales Tax Filing

Filing a sales tax return can be complex, particularly for businesses with high volumes of transactions.

Hiring a professional can ensure that the return is filed accurately and on time. Professionals are well-versed in Pakistani tax law and can help you avoid costly errors or delays.

Consider professional help, especially if your business deals with intricate tax matters, such as zero-rated sales or sales tax refunds.

If you need any expert help regarding sales tax filing call us at 03337703712 or contact us today for stress-free tax filing.