Sales Tax is a tax levied by the Federal Government under the Sales Tax Act, 1990, on sale and supply of goods and services and on the goods imported into Pakistan. Sales tax applies to the; Goods (All goods are taxable except those that have been exempted under section 13 of the Sales Tax Act, 1990. For sales tax purposes goods include every kind of movable property other than actionable claims, money, stocks, shares and securities.) & Services.
Following persons require to be registered in Sales Tax;
- All importers
- All wholesalers (including dealers) and distributors
- Manufacturers
- A person required under any Provincial or Federal Law to be registered
- Persons making zero-rated supplies including commercial exporter.
A registered person must provide a sales tax invoice for all taxable supplies and declare it in his monthly return and pays outstanding dues on or before 15th of every month. A registered person also must keep a record of all the goods and services supplied, purchased or imported in the course of business.All registered/enrolled taxpayers are liable to audit by authorized sales tax Auditors at least once in a year.