Sales Tax Registration in Pakistan: How to Get an STRN and File Monthly Returns

Manufacturers, importers, wholesalers, distributors and certain retailers must register for sales tax with FBR. You apply online through IRIS using Form 14(1), then complete biometric verification at a NADRA e-Sahulat centre within 30 days. Once registered, you generally file a return every month by the 18th and pay by the 15th, and the penalties for missing these dates rose sharply in 2026.

This guide covers federal sales tax on goods, charged at the standard 18% rate. If you provide services, you register with your province instead: see our guide to sales tax on services.

Who must register for sales tax

Under section 14 of the Sales Tax Act 1990, you must register if you make taxable supplies, including zero-rated supplies, and you are:

• A manufacturer, unless you run a cottage industry
• An importer
• A wholesaler, dealer or distributor
• A retailer liable to pay sales tax, which excludes retailers who pay through their electricity bill
• An exporter who wants a sales tax refund on zero-rated supplies
• A person required to register under another federal or provincial law for a duty or tax collected as sales tax
• An online seller of digitally ordered goods within Pakistan, with exceptions for cottage industries and retailers who pay through their electricity bill

Note that this list depends mainly on what you do, not on your turnover. An importer or distributor can't rely on being small.

Are you a cottage industry?

A manufacturer is outside the requirement only if it meets all of these conditions:

• No industrial gas or electricity connection
• Located in a residential area
• No more than ten workers
• Annual turnover from all supplies of no more than Rs 8 million

Are you a Tier-1 retailer?

Tier-1 retailers must register and follow stricter rules, such as linking their point of sale with FBR. The categories include national or international chains and retailers in air-conditioned malls. The Finance Act 2026 added retailers with annual turnover above Rs 200 million.

What if you don't register?

FBR can register you compulsorily after an inquiry and a hearing. The penalty for not applying before making taxable supplies is the higher of Rs 50,000 or 5% of the tax involved.

What you need before you apply

You need active IRIS credentials, so get your National Tax Number and IRIS login first. FBR's procedure then asks for:

• Your details: your CNIC if you're an individual, or the CNIC of a member, director or principal officer for an AOP or company, and whether you're a manufacturer or non-manufacturer
• A bank account certificate, issued by the bank in the business's name
• Business details: name, acquisition date, capacity, business activity and all branches
• GPS-tagged photographs of your business premises
• Gas and electricity consumer numbers, with pictures of the meters
• For manufacturers: GPS-tagged photographs of the machinery and the industrial electricity or gas meter

Get the photographs and bank certificate ready first. They usually take the longest, and you can't complete the form without them.

How to register on IRIS: step by step

1. Log in to IRIS with your credentials.
2. Open the Registration menu and select Form 14(1), the simplified sales tax registration form.
3. Complete the form with your sales tax, bank and business information.
4. Attach your documents and submit. On submission, the system registers you.
5. Complete biometric verification at a NADRA e-Sahulat centre within 30 days. If you miss this, or verification fails, you'll be taken off the Active Taxpayer List.
6. Check that you appear on the Active Taxpayer List.

You can also register through FBR's Tax Asaan mobile app.

Manufacturers should expect further checks. FBR may verify your details after registration, through its field offices or a third party. If a document is found to be missing or wrong, you'll have 15 days to provide it or you'll be taken off the Active Taxpayer List.

Being off the list has a commercial cost as well: your suppliers then have to charge you 4% further tax when you buy from them.

Monthly sales tax return: key dates

Under the standard procedure, these dates fall in the month after the tax period:

Step	Due by
Submit Annexure C (sales)	10th
Pay the tax	15th
File the return	18th

So for January's sales, you'd submit Annexure C by 10 February, pay by 15 February and file by 18 February. FBR sometimes extends these dates, so check its notices.

File even if you had no sales. The Act requires every registered person to file, so a quiet month normally means a nil return. Missing two consecutive returns can also cost you your active status.

How to file on IRIS

1. Go to Declaration in the IRIS menu, then select 26(1) (Sales Tax and Federal Excise Return filed voluntarily).
2. Select the tax period.
3. Complete the annexures that apply to you:
   • Annex-C: sales
   • Annex-A: purchases
   • Annex-B: imports
   • Annex-D: exports
   • Annex-H: stock statement, Annex-J: production data and Annex-E: federal excise, where relevant
4. Click Calculate in the Sales Tax Credit, Sales Tax Debit and Payable sections, and in Annex-F (balance credit) and Annex-G (arrears) where relevant.
5. Pay the tax due, then submit the return.
6. Save your acknowledgement and payment receipt.

Before you submit, reconcile your figures. Compare your purchases with what your suppliers declared, because section 7 can deny input tax where a supplier hasn't declared the supply or paid the tax. To check the sales tax on your invoices, use our free sales tax calculator, and see how sales tax is calculated for how the return figure is worked out.

Penalties increased in 2026

The Finance Act 2026 raised many section 33 penalties.

Offence	Previous penalty	Penalty now
Late return	Rs 10,000, or Rs 200 a day if filed within 10 days	Rs 50,000, or Rs 2,000 a day if filed within 10 days
Late payment	Higher of Rs 10,000 or 5% of the tax, or Rs 500 a day if paid within 10 days	Higher of Rs 50,000 or 5% of the tax, or Rs 5,000 a day if paid within 10 days
Not issuing an invoice	Higher of Rs 5,000 or 3% of the tax	Higher of Rs 25,000 or 5% of the tax
Not applying for registration before making taxable supplies	Higher of Rs 10,000 or 5% of the tax	Higher of Rs 50,000 or 5% of the tax
Not keeping required records	Higher of Rs 10,000 or 5% of the tax	Higher of Rs 50,000 or 5% of the tax

Unpaid tax also carries a default surcharge under section 34, at the higher of 12% a year or KIBOR plus 3%.

Example: you pay Rs 200,000 of tax and file your return five days late.

• Late payment: 5 days × Rs 5,000 = Rs 25,000
• Late return: 5 days × Rs 2,000 = Rs 10,000
• Total penalties: Rs 35,000, plus default surcharge on the tax

Under the old rates, the same delay cost Rs 3,500.

Other things to know after you register

• Invoices. The Finance Act 2026 requires tax invoices for exempt supplies and advance receipts too. They'll need a verifiable FBR invoice number from a date FBR notifies.
• E-invoicing. FBR can now de-register, blacklist or suspend businesses that fail to integrate their electronic invoicing system with its system.
• Paying suppliers. To claim input tax, you generally need to pay above Rs 50,000 per supplier per tax period through your business bank account.
• Staying active. Your active status also depends on filing your income tax return and withholding statements.

Cancelling your registration

You can apply to your Commissioner Inland Revenue to de-register if you've stopped trading, your supplies have become exempt, or your turnover has fallen below the threshold. FBR's page says this happens within 90 days of your application or of clearing all dues, whichever is later.

Frequently asked questions

How do I get an STRN in Pakistan? Log in to IRIS, select Form 14(1) from the Registration menu, submit your details and documents, then complete biometric verification at a NADRA e-Sahulat centre within 30 days.

Is there a turnover threshold for sales tax registration? Not for most categories. Importers, wholesalers, distributors and non-cottage manufacturers must register because of what they do. Turnover matters for cottage industries and some retailers.

When is the sales tax return due? By the 18th of the following month, with payment by the 15th and Annexure C by the 10th, unless FBR extends the date.

What's the penalty for filing late? Since the Finance Act 2026, Rs 50,000, or Rs 2,000 a day if you file within 10 days of the due date.

Do service providers register with FBR? Generally they register with their provincial authority (PRA, SRB, KPRA or BRA). In Islamabad, they deal with FBR.

Do I have to file if I had no sales? Yes, normally. Every registered person must file a return, including a nil return for a month with no activity.

Let us handle it

With many penalties now five to ten times higher, a missed date costs far more than it used to. Our partners can register your business and file your monthly returns for you. If you only need to check an invoice, the free Pakistan sales tax calculator is here.

Sources: Register for Sales Tax: who must register and procedure (FBR) · Sales Tax Due Dates (FBR) · Filing the Sales Tax Return on IRIS (FBR) · Sales Tax Act 1990 (FBR) · A Brief of Finance Act 2026 (KPMG)