According to section 14 of the Sales Tax Act, 1990, every person who is involved in supplying of “taxable supplies” in Pakistan are required to get sales tax registration. Such persons also include suppliers of zero rates goods.
According to sub-section (41) of section 2, “taxable supply” means a supply of taxable goods made by,
[by an importer, manufacturer, wholesaler (including dealer), distributor
Other than a supply of goods which is exempt under section 13.
Also includes a supply of goods chargeable to tax at the rate of zero per
cent under section 4
Persons required to get sales tax registration with FBR,
(a) a manufacturer, who is not running a cottage industry;
According to sub-section [(5AB) of section 2,
“cottage industry” means a manufacturing concern, which
fulfills each of following conditions,
(a) does not have an industrial gas or electricity connection;
(b) is located in a residential area;
(c) does not have a total labor force of more than ten workers;
(d) annual turnover from all supplies does not exceed three
(b) a retailer, excluding such retailer required to pay sales tax through his electricity bill under sub-section (9) of section 3 of Sales Tax Act, 1990.
(c) an importer;
(d) an exporter who intends to obtain sales tax refund against his zero-rated supplies;
(e) a wholesaler, dealer or distributor; and
(f) a person who is required, under any other Federal law or Provincial law,
Requirement of Sales tax registration – Not engaged in making taxable supplies
(2) Persons not engaged in making of taxable supplies in Pakistan, if required to be registered for making imports or exports, , may apply for registration.