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Pakistan’s 2025–26 federal budget introduces a 2% levy on digital transaction proceeds, targeting domestic online vendors, with banks and courier services designated as withholding agents to ensure collection and compliance.
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The Ministry mandates sales tax registration for non-resident e-commerce sellers and marketplaces serving local consumers, extending tax obligations to foreign digital service providers under Pakistan’s VAT-type Sales Tax Act framework.
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Pakistan’s sales tax system features an 18% general rate, provincial service taxes, place of supply rules for inter-provincial transactions, and withholding tax obligations, now including digital transactions for enhanced tax enforcement.
Latest Posts in "Pakistan"
- Pakistan’s New Electronic Invoicing Timeline: Phased Rollout from September 2025
- Pakistan Repeals 5% Digital Tax on Foreign Tech Firms: What It Means for Compliance
- FBR Announces Revised Sales Tax Rates and Provisions for 2025-26 Fiscal Year
- FBR Clarifies Handling of Excess Sales Tax Collections Under Section 3B of Sales Tax Act
- Pakistan Introduces Withholding Tax on Domestic Digital Sales via Online Marketplaces
