HOW TO REGISTER FOR SALES TAX WITH FBR: A COMPLETE WALKTHROUGH

It is not difficult to register for sales tax with the Federal Board of Revenue, but it is harsh. One missing document, one unclear photo, or one wrong selection in the portal can stall the application or push you into non-active status.

This walkthrough explains exactly how sales tax registration works in Pakistan, what FBR checks at each stage, and how to avoid the mistakes that cause most applications to fail. This walkthrough is prepared keeping view the latest Sales Tax rules issued by FBR. Also you can contact us through https://smartfilers.org .

 

Step 1: Required to Register for Sales Tax

As per the latest Sales Tax Rules, a person, whether an individual, AOPs or a company, having the following business activities must be registered under the Sales Tax Act.

• Make taxable supplies of goods in Pakistan
• Are a manufacturer, importer, wholesaler, or distributor
• Are otherwise liable under sales tax law and rules

If your business activity does not involve taxable supplies of goods, then there is no need for registration under the Sales Tax Act, 1990. Sales tax registration is not optional once liability exists, but it is also not meant for every business.

Step 2: Make sure you already have an income tax registration

Before starting the process of Sales tax registration, it is compulsory that a person is already registered under income tax.

Before applying, you must have:

• An active NTN
• Working IRIS login credentials

If you cannot log in to iris.gov.pk, then first fix this problem. Note that Sales tax registration cannot be submitted without an active income tax profile.

Step 3: Documents required for the registration of Sales Tax

Most applications are rejected due to improper document filing. Therefore, prepare the following documents before starting the application.

1. Bank Account Certificate
   • Issued by your bank
   • Having the exact name of the business
   • Account is active
2. Electricity and Gas Consumer Numbers
   • Having a clear address of the business premises, if it is in the name of the business, then it is an added feature.
   • Scanned or downloaded bills from the utility providers’ websites are usually accepted
3. GPS-Tagged Photographs of Business Premises
   • Clear photo showing the entry and exit point
   • Clear photo showing business setup
   • The GPS location must be mentioned in these photos
4. Branch Details (if applicable)
   • If business is carried on through various branches, then their address must be mentioned
5. Additional for Manufacturers
   • GPS-tagged photos of installed machinery
   • Clear photos of an industrial electricity or gas meter with GPS tags
6. Balance Sheet (Specific Cases)

It is required if you are either:

• An individual
• An AOP
• A company with only one shareholder

The balance sheet must show business capital, assets, and liabilities.

Note that do not upload unclear images because FBR checks these manually.

Step 4: Log in to IRIS and Start Sales Tax Registration

Go to: https://iris.fbr.gov.pk

1. Log in using your NTN credentials
2. Go to Registration
3. Select Sales Tax Registration
4. Open Form STR-1

This is the official sales tax registration form. If you feel that it is difficult for you, then you can contact us through https://smartfilers.org

Step 5: Select Correct Jurisdiction (This Matters)

During the filing for the registration for Sales Tax, you must choose your jurisdiction carefully. To do so, you have to follow:

• In the case of Companies
  • Registered office location, or
  • Factory location if manufacturing
• In the case of Non-corporate businesses
  • Where business is actually carried on

Mentioning the wrong jurisdiction in the application is a common reason for delay in registration and serving of notices at a later stage.

Step 6: Complete Form STR-1 Carefully

Carefully Fill in the following:

• Business activity (manufacturer, wholesaler, etc.)
• Business address exactly as per utility records
• Bank details
• Contact information

Note: at this stage, avoid vague descriptions because this affects the verification and approval process.

Step 7: Upload Documents and Photographs

You must upload each document to the correct section. The practical tips are:

• Clearly rename files (e.g., Bank_Certificate.pdf)
• Ensure that GPS tagging is visible
• Do not upload selfies or blurred images
• Photos should clearly show the premises as a business place

Once you have uploaded the above narrated documents, then review everything before submission.

Step 8: Submit the Application

After submission of the application for the registration of Sales Tax:

• The system performs an initial validation and
• Your application transfer is in the outbox

In the case of individuals, AOPs, and single-member companies, approval is not automatic. The concerned tax office, having jurisdiction, reviews the documents before confirmation.

Step 9: Visit NADRA e-Sahulat for Biometric Verification

After registration appears approved in IRIS, a provisional Sales Tax Registration Certificate is issued at the stage where the applicant has to complete the following steps:

• Visit any NADRA e-Sahulat Center
• Carry original CNIC
• Complete biometric verification

This process must be completed within one month of the approval of the Sales Tax registration application. In the case of failure to complete these steps, the system removes your name from the Active Taxpayer List for sales tax.

Step 10: Expect Possible Physical or Field Verification

In some cases, especially for manufacturers:

• FBR may conduct pre-verification or post-verification
• Officers may confirm the existence and activity

Keep documents ready and premises accessible.

Common Registration Errors to Avoid

These are the mistakes causing most delays or suspensions for the registration for Sales Tax:

• Uploading non-GPS tag photos
• Using residential photos for commercial activity
• The clear business name is not mentioned on the bank account
• The wrong business activity category is selected
• Failed to file the Balance Sheet where required
• Ignoring the biometric verification deadline

Fixing these at a later stage takes a longer time than doing it right once.

Timeline: What to Expect

• Online submission: Same day
• System processing: Usually immediate
• Manual approval (where required): A few working days
• Biometric verification: Same day at e-Sahulat

The delays usually arise due to document issues, not the system.

Immediate Next Steps After Registration

On the competition registration process:

• At once, download your Sales Tax Registration Certificate
• Verify your name or business name appears on the Sales Tax Active Taxpayer List
• Ensure your login remains active in IRIS

Note: that do not issue sales tax invoices until registration is fully active.

Bottom Line

Sales tax registration with FBR is a process, not a formality. The system is strict because registration gives you an invoice-issuing authority under the law.

Prepare documents first. Upload clean, accurate data. Complete biometric verification on time. Do this, and registration usually goes through without friction.