FBR makes a big announcement for Online websites across Pakistan
ISLAMABAD - The government has decided to reduce the sales tax for earnings made via online websites. A 6 percent sales tax will be applicable on online sales made through websites after providing the sale data transmitted to the Federal Board of Revenue’s (FBR) Computerized System through the prescribed integration software.
FBR has amended Sales Tax Rules, 2006 through an SRO 180(1)/2019 issued on Monday to facilitate online sales made through websites.
The standard rate of sales tax is 17 percent but the online sales can avail a lower rate of 6 percent sales tax if they register with the FBR’s system under FBR rules and provide necessary data.
According to the revised rules, online sales made through websites hosted with a registered domain name shall also be treated as sales made through point of sales on a notified outlet and accordingly covered under the purview of this rule, provided the sale data transmitted to the Board’s Computerized System through a prescribed integration software with the same particulars as stipulated and invoice is provided to the customer with particulars.
Such website or websites shall be registered with the Computerized System with following details including a domain name; domain name provider; name of service provider managing the website; and addresses of supply centres and warehouses.