As per Lawkidunya, Sales tax registration for international businesses in Pakistan is mandatory for certain entities. Who needs to register?

– All importers
– Wholesalers and distributors
– Manufacturers (except those in the cottage industry)
– Retailers (Tier-1 retailers, such as those operating in air-conditioned shopping malls or with high electricity bills)
– Service providers (like hotels, restaurants, and insurance companies)
– Persons making zero-rated supplies (including commercial exporters)

To register, international businesses will need to provide various documents, including:

– Business information: Name, address, and bank account details
– Tax identification: Tax identification numbers of directors and owners
– Passports: Passports of directors
– Proof of business premises: Utility bills and ownership/tenancy documents

The registration process can be completed online through the Federal Board of Revenue (FBR) portal, Iris. International businesses will need to create an account, submit the required documents, and pay the registration fee.

It’s essential to note that failure to register may result in fines and penalties. The Pakistani sales tax registration threshold is nil, meaning businesses with a turnover below PKR 1 million may apply for a simplified tax regime.