Output sales tax you would charge once registered.
Annual output tax
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Rate applied
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Monthly output tax
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What sales tax registration actually puts on you
Registering for sales tax changes your role. You stop being just a payer of tax on your purchases and become a collector for the state. From the registration date you charge output tax on what you sell, you can reclaim input tax on what you buy, and you file periodic returns paying over the difference. This calculator answers the practical question that follows: once you are registered, how much output tax will you actually be charging across a year of turnover? Enter your annual taxable turnover, pick whether you supply goods or services, and for services choose your province, and it returns the gross output tax annually and monthly.
The split between goods and services is the heart of it. Goods carry the federal sales tax administered by the Federal Board of Revenue (FBR), and the standard rate this calculator applies is 18 percent. Services are provincial, so the rate follows the relevant authority, the Sindh Revenue Board, the Punjab Revenue Authority, the KP Revenue Authority, the Balochistan Revenue Authority, or the Islamabad arrangement. As with every tax line in Pakistan, these rates are set in annual finance legislation and move, so treat the figures here as the ones the tool applies and verify the current rate with the FBR or your provincial authority.
Output tax on PKR 30 million of turnover
Take a business turning over PKR 30 million a year. As a goods supplier at the 18 percent standard rate this calculator applies, the gross output tax is PKR 5.4 million for the year, which is PKR 450,000 a month that you charge clients and hold before remitting. Switch the supply type to services in Sindh, where the rate the tool uses is 15 percent, and the output tax falls to PKR 4.5 million a year, or PKR 375,000 a month. These are gross figures before you subtract the input tax you paid on purchases, so the cash you actually hand to the authority is smaller once input credit is applied.
| Supply type | Rate applied | Annual output tax | Monthly |
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The chart contrasts the annual output tax and turnover for the current inputs.
The registration threshold, in principle
Registration is not always optional. Both the FBR for goods and each provincial authority for services set turnover thresholds above which registration becomes compulsory, and certain categories such as manufacturers, importers, and specified service sectors can be required to register regardless of size. The exact threshold figures differ between the federal regime and each province and are revised periodically, so this calculator does not assert a specific number; check the current compulsory-registration threshold for your activity directly with the FBR or your provincial authority. What the tool does is let you see the output-tax consequence of being registered at any turnover you enter, which is the part that drives your pricing and cash flow.
Gross output tax is not your tax bill
The most important caution is also the most common misunderstanding. The figure here is gross output tax, the tax you charge on sales. It is not what you pay over. A registered business deducts the input tax it paid on raw materials, stock, and eligible expenses, and only the net difference goes to the authority. A trader with healthy input tax may remit far less than this gross number; a pure-margin service provider with few taxable inputs may remit close to all of it. So use this result to set prices and to understand the cash you will be collecting and holding, not as your final liability.
A practical tip: registration also unlocks input tax recovery you cannot claim while unregistered, so for a business selling to other registered firms the decision is often net positive even before any threshold forces it. The edge case to watch is mixed supplies, a business that sells both goods and services answers to both the FBR and a provincial authority and files in two systems, which this single-rate tool simplifies. It is built for owners and finance staff sizing the impact of registering, freelancers crossing into formal turnover, and traders planning cash flow. To work out the net payable after input credit, use the input vs output tax calculator, and for the detailed provincial service rates use the sales tax on services calculator.
Do I have to register for sales tax in Pakistan, or is it voluntary?
It can be either. Registration is compulsory once your turnover crosses the threshold the FBR or your provincial authority sets, or if you fall into a category that must register regardless of size, such as manufacturers or specified service providers. Below those triggers you may register voluntarily to claim input tax and to supply registered customers who want a tax invoice. Confirm your specific obligation with the relevant authority.
If I register, do I pay the full output tax shown here to the FBR?
No. The amount shown is the gross output tax you charge on sales. From it you deduct the input tax you have already paid on your purchases, and only the net balance is remitted with your return. A business with substantial taxable inputs pays meaningfully less than the gross figure, which is why this tool is a starting point for pricing rather than a statement of your final monthly payment.