A sales tax returns is a statement that lists all transactions during a tax period and includes the taxpayer’s sales tax liability. All individuals registered under the Federal Excise Act, 2005, or the Sales Tax Act, 1990, must submit a Sales Tax Return. The taxpayer specifies the relevant tax period, the input tax, and the output tax at the stipulated rate of sales tax on the return form. If the input tax is greater than the output tax, the return also states the amount of refund requested or the excess input tax.

Each registered individual must submit only one return for the primary industry they operate in. The due date for the sectors’ single return would be the one that applies to the majority of their business in terms of federal excise tax or sales tax due.

If a Sales Tax Return is not filed within six months of the due date, it can only be submitted with the Commissioner of Inland Revenue’s approval.

Different Types of Sales Tax Returns

Filing Monthly Sales Tax Returns

In accordance with the usual procedure, a registered person is required to submit a monthly return, Annexure C, on the 10th and Payment on the 15th in the specified National Bank of Pakistan branches. The return must be made by the 18th day of the month following the period during which the items were supplied. To submit returns on a monthly and quarterly basis, as described below, a procedure has been developed for particular categories.

Quarterly Sales Tax Filing Guide

The taxpayers who are only in the CNG category are required to submit their returns quarterly.

Annual Sales Tax Return Submission

By September 30 of the subsequent financial year, a manufacturer must submit yearly sales tax returns for the previous financial year.

Final Sales Tax Return for Deregistration

When applying for de-registration, the applicant must submit a final return to the relevant Commissioner who has jurisdiction at that time, as instructed by the relevant Commissioner, before de-registration.

E-Filing Your Sales Tax Returns Online

For registered taxpayers, electronic filing (e-filing) of sales tax returns in Pakistan enables submission of their monthly or yearly returns online using the FBR’s IRIS portal. This procedure streamlines compliance, lowers paper load, guarantees prompt submission, and helps to minimise reporting errors. E-filing helps companies track their refund claims in real-time, correct input tax errors, and maintain accurate records without incurring late filing fines.

Ensure your sales tax return is filed accurately and on time. Contact SARDAR KHAN & CO today for expert assistance with electronic filing and maximise your refund claims.