Pakistan Invoice Template
Create free Pakistan invoices online with VAT/ST
Create free Pakistan invoices online with VAT/ST
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.
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.
|✔ Supplier name & address|
|✔ Supplier tax number|
|✔ Customer Name & Address|
|✔ Date of supply|
|✔ Unique invoice number|
|✔ Description of goods or services provided|
|✔ Sales tax rate|
|✔ Sales tax amount|
|✔ If paid in foreign currency, this amount must be converted into PKR at the public exchange rate at the time of sale.|
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.
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.
|Zero-rated goods in Pakistan are:|
✔ Ship and aircraft supplies & maintenance
✔ Raw materials & goods for export
✔ Diplomatic supplies
✔ Agricultural supplies
✔ Export supplies
|Tax-exempt items in Pakistan are:|
✔ Vegetables and fruits
✔ Live animals, poultry, & plants
✔ Basic supplies such as sugar or salt
✔ Bicycles & wheelchairs
✔ Reading products, including newspapers, books, magazines, etc.
|Tax Rates||Supplies Included|
|17% (Federal)||Most goods supplied in Pakistan, including imports. There is an additional 1% levied where the customer is a non-Sales Tax registered consumer.|
|13%-16% (Provincial)||Services in Pakistan are taxed at rates determined by the provinces. Types of services included are banking, construction, shipping and delivery, business services, hotels, and restaurants. Telecoms (17%), advertising, specialist advice and consulting, outsourced businesses services, event organisation and related services, temp or contract employees, hotel and restaurants.
●Sindh Province: 13%
●Punjab Province: 16%
●Baluchistan Province: 15%
●Khyber Pakhtunkhwa (KPK) Province: 15%
●Islamabad Capital Territory: 16%
|3%-10%||Goods imported to Pakistan and export produce, depending on the product. Sugar. Certain plant and machinery.|
|18.5% – 25%||Metals, chemicals, and petroleum products|
|Zero-rated||Exports; office stationery|
|Tax-exempt||Pharmaceuticals; books and newspapers; agriculture produce; medical supplies
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.
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.
Individuals or businesses that are sales tax registered will file monthly via the FBR’s online system. If the input tax paid on taxable purchases exceeds the output tax, the excess amount of input tax will be refunded. Output tax is collected from the end customer by a supplier of taxable goods or services, while input tax refers to taxes paid by the supplier on business-related purchases.