Pakistan Invoice & Bill Template

VAT invoicing in Pakistan

Filing VAT in Pakistan? With our tax invoice templates, you can create compliant invoices, including all required information. Just fill the pre-created fields, download, and send. Build your VAT-compliant invoice for Pakistan today.

Invoicing in Pakistan

All Pakistani sales tax registered businesses must produce a tax invoice, including the following details:

Businesses registered for sales tax in Pakistan should maintain invoice records for several years in case of an audit. Exporters are eligible for sales tax refunds via FBR’s online tax refund portal and must file sales tax invoices monthly, so this makes it vital to use compliant invoices for all sales.

VAT/GST in Pakistan

VAT in Pakistan is called sales tax (ST) and is generally levied at a rate of 17% on the value of goods and supplies unless specifically exempt. Sales tax is collected at the final point of sale from the end customer and transferred to the federal government. An important component of the country’s GDP, sales tax compliance, is administered by Pakistan’s Federal Board of Revenue (FBR). Pakistani provinces are also permitted to levy VAT/sales tax on services. Sales tax on services, therefore, varies depending on the Pakistani province.

Sales Tax Rates in Pakistan

Pakistani sales tax is levied at different rates depending on the goods or supplies being provided. Export sales are subject to 0% sales tax, as well as other supplies in the zero-rated category. It’s also important to note that Pakistan’s provinces levy different tax rates on services.

Products and supplies not included in these categories are likely liable for sales tax. Additionally, the commercial import of goods to Pakistan is subject to 3% VAT as well as sales tax.

Registering for VAT in Pakistan

All businesses supplying taxable supplies, goods, or services are required to register for sales tax. This includes all businesses:

● Importing goods into Pakistan
● Supplying remote digital services
● Supplying goods or services in Pakistan (except for exempted goods)

Any Pakistani manufacturers, importers, retailers, wholesalers, service providers, or exporters are included in this registration requirement.

Who Should Register for VAT/Sales Tax in Pakistan

All businesses and suppliers of taxable goods must register for Pakistani sales tax via FBR’s online portal. Generally, tax registration will also require an in-person meeting. In order to process the application, you will be asked to provide the following:

● Business name
● Business address
● Business bank accounts
● Tax identification business directors
● Passports of business directors

Any Pakistani business that fails to register for sales tax may be fined. Since there is no threshold for businesses required to register for sales tax, most businesses will have to register with BIR. Although the registration threshold is nil, businesses with low business turnover may be eligible for a simplified sales tax scheme. Sales tax is due in Pakistan at the time of supply or at the time of payment.

Businesses registering with FBR for sales tax will receive a Sales Tax Registration Number (STRN) or User ID and password that will be used in all electronic filing for sales tax returns. Unlike many countries, non-resident businesses operating in Pakistan may not register for sales tax, regardless of turnover.