In a major step to increase the size of Pakistan’s tax base, the Federal Board of Revenue (FBR) has implemented a new sales tax law that targets internet companies.
Digital marketplaces, couriers, and payment agents must now deduct sales tax from all online orders, including cash on delivery, and send the information to the FBR in accordance with recently updated regulations.
FBR modifies the 2006 Sales Tax Regulations
A new chapter that is especially targeted at digital transactions and e-commerce platforms has been added to the Sales Tax Rules 2006 by a formal notification issued by the FBR. An important step toward regulating internet companies and integrating them into the official tax system is this change.
In accordance with the amended law:
Sales tax must be subtracted at the point of sale by payment agents, courier services, and online marketplaces.
