Pakistan sales tax calculator

Pakistan does not have one sales tax rate. Goods are taxed federally, by the Federal Board of Revenue. Services are taxed by the province they are supplied in, each through its own authority at its own rate. So the first step is not the arithmetic. It is choosing the right rate, and the calculator above asks you to do that before it does anything else.

The rates

• Goods, federal (FBR): 18 per cent
• Services in Sindh (Sindh Revenue Board): 15 per cent
• Services in Khyber Pakhtunkhwa (KPRA): 15 per cent
• Services in Punjab (PRA): 16 per cent, needs confirmation
• Services in Balochistan (BRA): 15 per cent, needs confirmation
• Exports: 0 per cent

Section 3 of the Sales Tax Act 1990 charges federal sales tax at 18 per cent of the value of taxable supplies. Sales Tax Act 1990, FBR consolidated text 2025-26

The Sindh Revenue Board's general rate on taxable services is 15 per cent. Sindh Revenue Board, taxable services

The KP Sales Tax on Services Act 2022 sets 15 per cent as the standard rate for all purposes of the Act. Khyber Pakhtunkhwa Sales Tax on Services Act 2022

Punjab and Balochistan are the two to check. The Punjab Revenue Authority's own FAQ gives 16 per cent and the Balochistan Revenue Authority's gives 15 per cent, but both pages are years old and neither authority has republished the figure recently. Treat both as needing confirmation with the authority, or with your tax adviser, before you send an invoice.

The Balochistan Revenue Authority's FAQ gives 15 per cent, from the 2015 regime. Balochistan Revenue Authority, FAQs

Adding tax to a price

When your price is before tax, multiply it by the rate and divide by 100. A supply of goods worth PKR 100,000.00 at 18 per cent carries PKR 18,000.00 of tax, for a total of PKR 118,000.00.

Removing tax from a total

When the figure includes tax, the tax inside it is: tax = gross x rate / (100 + rate). At 18 per cent that is gross x 18 / 118. At 15 per cent it is gross x 15 / 115. Taking 18 per cent of the gross is the classic mistake, and it always overstates the tax.

Use add when you quote before tax, which is the normal way to invoice another business. Use remove when a price was agreed or displayed including tax, or to check that a supplier's invoice splits its total correctly.

Zero rated and exempt

Zero rated means the supply is taxable at 0 per cent. You still issue the invoice, still report the sale and can still claim input tax on the costs of making it. Goods exported out of Pakistan are zero rated under section 4 of the Act, with further zero-rated supplies in the Fifth Schedule. Exempt supplies, listed in the Sixth Schedule, are outside the tax, and input tax on them is generally not claimable. Exports of services fall under the provincial laws, so check the wording in yours.

Zero rating is set by section 4 and the Fifth Schedule, and exemptions by section 13 and the Sixth Schedule, of the Sales Tax Act 1990. Sales Tax Act 1990, sections 4 and 13

Rounding

The calculator works in whole paisa and rounds half up, once. In remove mode it rounds the amount before tax and gives the tax as the remainder, so the two add back to exactly what you typed.

What goes on the invoice

The figures then go onto a sales tax invoice with your NTN and STRN, the buyer's registration number where they are registered, a serial number, the date, the description and quantity, the value before tax, the rate, the tax and the total. The calculator does not add further tax on supplies to unregistered buyers, or any withholding, both of which depend on who you are selling to.

Section 23 of the Act lists the particulars, and SRO 1006(I)/2021 sets the standard invoice layout. SRO 1006(I)/2021, FBR