Times of Islamabad

FBR makes a big announcement for Online websites across Pakistan

FBR makes a big announcement for Online websites across Pakistan

ISLAMABAD – The government has decided to reduce the sales tax for earningsmade via online websites. A 6 percent sales tax will be applicable ononline sales made through websites after providing the sale datatransmitted to the Federal Board of Revenue’s (FBR) Computerized Systemthrough the prescribed integration software.

FBR has amended Sales Tax Rules, 2006 through an SRO 180(1)/2019 issued onMonday to facilitate online sales made through websites.

The standard rate of sales tax is 17 percent but the online sales can availa lower rate of 6 percent sales tax if they register with the FBR’s systemunder FBR rules and provide necessary data.

According to the revised rules, online sales made through websites hostedwith a registered domain name shall also be treated as sales made throughpoint of sales on a notified outlet and accordingly covered under thepurview of this rule, provided the sale data transmitted to the Board’sComputerized System through a prescribed integration software with the sameparticulars as stipulated and invoice is provided to the customer withparticulars.

Such website or websites shall be registered with the Computerized Systemwith following details including a domain name; domain name provider; nameof service provider managing the website; and addresses of supply centresand warehouses.