Pakistani GST rates and GST compliance

In Pakistan, a VAT-like system applies under the name Sales Tax (GST), administered federally by the FBR — and provincially for services.

Certain supplies may be exempt or otherwise outside the standard GST regime — e.g. some essential goods or supplies defined under law/notifications.

A valid Sales Tax Registration Number (STRN) is required for any business making taxable supplies in Pakistan, whether goods or services. Businesses involved in manufacturing, import, export, distribution, or retailing of taxable goods, or providing taxable services (under provincial law) must register.

There is no general turnover threshold — certain businesses must register regardless of size (e.g., importers, wholesalers, exporters, Tier1 retailers).

After registration, the business must issue tax invoices, collect sales tax, maintain records, and file monthly returns via the FBR’s IRIS portal (for goods) or provincial tax systems (for services).

Find out more about sales tax registration in Pakistan.

Registered businesses must file regular monthly sales tax returns, even if no taxable activity occurred during the period. Returns must report total sales, purchases, output tax, input tax, and tax payable or refundable.

Returns are due by the 18th of each month.

Payment of tax due must be made by the 15th. 

Returns must be filed electronically through the FBR (goods) or provincial authority systems (services).

Input tax can be offset against output tax if supported by proper documentation.

Find out more about sales tax returns in Pakistan.

Because of constitutional arrangements, services are taxed at the provincial level, not federal. Typical provincial sales tax rates on services range from 13–16%, depending on province and service type.