Quick answer
Federal sales tax registration is done on FBR's IRIS portal by filing Form 14(1), with a bank account certificate in the business name, GPS-tagged photos of your premises and your electricity and gas consumer numbers. After registering, you must complete biometric verification at a NADRA e-Sahulat centre within a month, or you are taken off the sales tax Active Taxpayer List.
What do you need before you apply?
FBR's registration procedure starts with your IRIS login, so get your income tax registration in place first. You then choose Form 14(1) from the Registration menu.
Which documents does FBR ask for?
Rule 5 of the Sales Tax Rules, 2006 and FBR's own registration page list:
- a bank account certificate issued by the bank in the name of the business
- the registration or consumer number with your electricity and gas supplier, with pictures of the utility meters
- particulars of all branches if you operate from more than one location
- GPS-tagged photographs of the business premises
- for manufacturers, GPS-tagged photographs of machinery and the industrial electricity or gas meter
- for an individual, an association of persons or a single member company that is not a manufacturer, a balance sheet showing business capital, assets and liabilities
For AOPs and companies, the form also asks for the CNIC of a member, director or principal officer, and whether you are a manufacturer or non-manufacturer.
Is registration instant?
Not always. Rule 5 says that for individuals, AOPs and single member companies, IRIS registers the person only after the Local Registration Office is satisfied the documents are uploaded and approves the application. Manufacturers may also face pre- or post-registration verification by field offices.
What happens after you register?
Rule 5(4) requires biometric verification at a NADRA e-Sahulat centre within a month. If you miss it, or the verification fails, your name comes off the sales tax Active Taxpayer List. Individuals, AOP members and directors of single member companies must also re-verify every July. If they do not, they can only file returns with the Commissioner's prior authorisation.
If your name, address or other particulars change later, rule 7 asks you to notify FBR on Form STR-1 within 14 days.
Which authority covers services in the twin cities?
It depends where the service is provided. Services provided in Islamabad Capital Territory are taxed under the Islamabad Capital Territory (Tax on Services) Ordinance, 2001, which FBR administers. Section 3(3) of that Ordinance applies the Sales Tax Act, 1990 for registration and returns. Services provided from Rawalpindi fall under the Punjab Revenue Authority. Goods are covered by FBR's federal sales tax. If you work across the boundary, get advice first.
Where can you get help with your set-up?
Tax support at TheWing.pk is led by our co-founder, a Chartered Accountant. A dedicated desk at Central Mall, 2nd Floor, GT Road, opposite DHA Phase 2, is PKR 36,400 a month and includes a complimentary 30-minute tax consultation. Book a free tour and bring your questions.
Frequently asked questions
Which IRIS form is used for sales tax registration?
Form 14(1), the form of registration filed voluntarily through the simplified procedure, under the Registration menu in IRIS.
Do I need a business bank account to register for sales tax?
Yes. FBR asks for a bank account certificate issued in the name of the business.
How long do I have for biometric verification?
One month from registration, at a NADRA e-Sahulat centre, under rule 5(4) of the Sales Tax Rules, 2006.
Can I register for sales tax on my phone?
Yes. FBR says registration can also be done through the IRIS mobile application or the Tax Asaan mobile application.
Is IT work in Islamabad registered with FBR or PRA?
Services provided in Islamabad Capital Territory come under the ICT (Tax on Services) Ordinance, 2001, administered by FBR. Services provided from Rawalpindi come under the Punjab Revenue Authority.
