FBR Reduces Sales Tax for Online Websites

The government has decided to reduce the sales tax for earnings made via online websites. A 6 percent sales tax will be applicable on online sales made through websites after providing the sale data transmitted to the Federal Board of Revenue’s (FBR) Computerized System through the prescribed integration software.

FBR has amended Sales Tax Rules, 2006 through an SRO 180(1)/2019 issued on Monday to facilitate online sales made through websites.

The standard rate of sales tax is 17 percent but the online sales can avail a lower rate of 6 percent sales tax if they register with the FBR’s system under FBR rules and provide necessary data.

According to the revised rules, online sales made through websites hosted with a registered domain name shall also be treated as sales made through point of sales on a notified outlet and accordingly covered under the purview of this rule, provided the sale data transmitted to the Board’s Computerized System through a prescribed integration software with the same particulars as stipulated and invoice is provided to the customer with particulars.

Such website or websites shall be registered with the Computerized System with following details including a domain name; domain name provider; name of service provider managing the website; and addresses of supply centres and warehouses.

Sales made through social media portals shall also be treated as covered under this sub-rule if the same are recorded through a point of sale and relevant provisions are complied with, FBR added.

The FBR had allowed textile and leather sectors to integrate with FBR’s online system to avail the benefit of reduced rate of sales tax under the SRO 1125(1)/2011.

According to the revised rules, the lower rate shall not apply to the sales that are not recorded by a point of sale and communicated to the Board’s Computerized System in the manner as stipulated in rule 150ZEB or to the sales not covered under rule 150ZEE.

  • First of all I guess no online store is paying tax. And I like this that they reduced the sales tax on online stores to bring a small amount but in good volume into the sales bracket. But most of the people don’t trust this current Imran Khan’s government. He is saying 6% today and as soon as everyone will register he will bluff and say now its 17%. So ultimately he will register everyone in the tax bracket and then screw them. Which is eventually loss of interest of people in the government and end of business.

    • when u said “I guess….” u just lost the audience there lol
      would appreciate facts rather than guesses

  • does it include the online food orders like foodpanda, mcdonalds or pizza hut? do we get the 6% GST on these?? please clarify

    • Hi Danial, Sales tax on food comes under provincial sales tax and are being taxed at 16% under provincial sales tax regime. Federal sales tax has no jurisdiction on them.

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