As per Lawkidunya, In Pakistan, sales tax is governed by the Sales Tax Act, 1990, and the Federal Board of Revenue (FBR) is responsible for its administration. Here are some key aspects of Pakistan’s sales tax laws for individuals:

Registration

1. Mandatory registration: Individuals engaged in a taxable activity with an annual turnover exceeding PKR 5 million (approximately USD 30,000) must register for sales tax.
2. Voluntary registration: Individuals with an annual turnover below the threshold can also register voluntarily.

Taxable Supplies

1. Goods: Sales tax is applicable on the supply of goods, including locally manufactured and imported goods.
2. Services: Certain services, such as telecommunications, banking, and insurance, are also subject to sales tax.

Tax Rates

1. Standard rate: The standard sales tax rate is 17%.
2. Reduced rates: Lower rates apply to certain goods and services, such as:
– 5% on food items, medicines, and educational services
– 10% on textiles, leather goods, and other specified items

Exemptions

1. Basic necessities: Certain essential items, such as wheat, rice, and sugar, are exempt from sales tax.
2. Export-oriented industries: Goods exported from Pakistan are exempt from sales tax.
3. Diplomatic missions: Sales to diplomatic missions and international organizations are exempt from sales tax.

Payment and Returns

1. Monthly returns: Registered individuals must file monthly sales tax returns by the 15th of the following month.
2. Payment: Sales tax payments are due by the 15th of the following month.
3. Penalties: Late payment or non-payment of sales tax attracts penalties and fines.

Other Obligations

1. Invoicing: Registered individuals must issue sales tax invoices for all taxable supplies.
2. Record-keeping: Accurate records of sales, purchases, and tax payments must be maintained.

It is essential for individuals to consult the Sales Tax Act, 1990, and relevant regulations, as well as seek professional advice to ensure compliance with Pakistan’s sales tax laws.