- Foreign diplomats in Pakistan now need permission for zero-rating of sales tax supplies
- The requirement is outlined in the updated Sales Tax Rules, 2006 for Tax Year 2024
- Diplomats must formally apply for permission and provide an exemption certificate issued by the Ministry of Foreign Affairs
- Exemption certificates are issued based on reciprocity and a minimum purchase value of ten thousand rupees or more
- The Assistant Collector or Deputy Collector will record the details of the goods being purchased and issue an “Authorization for Zero-Rated Supplies”
- The registered person receiving the authorization must make the zero-rated supply and maintain detailed records
- The update aims to ensure transparency and accountability in tax-related transactions involving foreign diplomats
- Experts believe that these regulations will create a more structured framework and foster positive relations between diplomats and tax authorities in Pakistan.
Source: pkrevenue.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
