Classification
Tariff heading and schedule for each product.
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Sales tax mistakes are expensive because they repeat on every invoice. Our sales tax advisory in Pakistan answers the questions that decide your liability: which rate and schedule apply, whether a supply is exempt or zero-rated, which province taxes your services, and how withholding and further tax affect your pricing.
Whether a product is taxed at the standard rate, a reduced rate, on retail price, at zero or not at all depends on its classification, the schedule it falls in and the conditions attached. Getting that answer right before you invoice avoids years of exposure.
Federal sales tax on goods is charged under the Sales Tax Act, 1990, at the standard rate under section 3 unless a schedule provides otherwise. The Third Schedule taxes specified goods on their printed retail price, the Fifth Schedule zero-rates exports and certain supplies, the Sixth Schedule exempts listed goods, and the Eighth Schedule provides reduced rates, many of them conditional. Classification normally follows the Pakistan Customs Tariff headings, and many reliefs depend on SROs that change during the year. Sales tax on services, in contrast, is charged mainly by the provinces and Islamabad Capital Territory under their own laws, administered by PRA, SRB, KPRA, BRA and, for ICT, FBR.
Advisory questions also arise from further tax on supplies to unregistered persons, sales tax withholding by government bodies and other withholding agents, input tax rules in sections 7, 8 and 8B, integration requirements for Tier-1 retailers, and the treatment of mixed businesses that supply both goods and services. We give written answers that cite the law and the SROs relied on, so you can apply them consistently.
This service answers specific questions and reviews arrangements. For monthly filing, see sales tax compliance. For income tax questions on the same transaction, our tax advisory service covers both sides, and our financial modeling team can show the effect of sales tax on pricing and margins.
A fixed fee per question or review, agreed before work starts.
Tariff heading and schedule for each product.
Standard, reduced, retail-price or zero rate confirmed.
Whether an exemption applies and its conditions.
Which authority taxes your services, and where.
Effect of sales tax withholding and further tax.
Admissible and inadmissible input tax, and limits.
Tier-1 status, POS integration and invoicing.
Tax-inclusive or exclusive pricing and contract terms.
Each of these tends to repeat on every invoice until it is caught.
Goods taxed under the wrong schedule create short-payment on every sale.
We classify correctly.Many Eighth Schedule rates need conditions to be met.
We check conditions.Services taxed by the wrong authority can lead to double tax.
We confirm jurisdiction.Supplies to unregistered buyers can attract further tax under section 3(1A).
We review your buyers.Claims barred by section 8 are reversed with surcharge.
We review input claims.Relief withdrawn by a new SRO or Finance Act is often missed.
We cite current law.Most questions are answered within days.
Tell us the product, service or transaction.
Scope and timing confirmed.
Tariff, schedules, SROs and provincial law reviewed.
Written opinion with the law cited.
Invoices, ERP settings and contracts updated.
Classification, rates and input tax.
Import stage tax and onward supplies.
Tier-1 rules, retail price goods and POS.
Provincial services tax and registration.
Zero rating and refunds.
Sales tax withholding on supplies.
We advise from the same desk that files sales tax returns, so our advice is tested against real filings.
Goods and services taxes considered together.
ACCA and ICAP Chartered Accountant qualifications and an FBR-registered income tax practitioner.
LLB-qualified advocate for schedule and SRO interpretation.
Advice you can rely on and show to auditors.
Help updating invoices and systems.
Agreed per question or review.
Have a question that is not here? Send it to us on WhatsApp and we will reply the same day.
Tell us what you sell and to whom. We will confirm the rate, schedule and authority, and quote a fixed fee for written advice.
Book your free consultationThis page is general information about our services, not tax, legal or financial advice for your specific situation. Laws, rates and deadlines change with each Finance Act and official notification.