If you are a business owner in Pakistan, you may wonder whether it’s possible to hold more than one sales tax registration. Under Sales Tax Rules, 2006, updated for tax year 2026, the FBR allows only one registration per person for a business activity, with certain exceptions.
This guide explains how multiple registrations are handled, exceptions, and the proper procedure.
✅ Key Rule on Multiple Registrations
Rule 10 of Sales Tax Rules, 2006 governs the cancellation of multiple registrations:
1. Single Registration Rule
o If a person holds more than one sales tax registration, they must retain only one.
o All other registrations must be surrendered with intimation to the Commissioner Inland Revenue at the relevant RTO.
2. Exception for Manufacturing Units
o The FBR may allow separate registrations for manufacturing units located in different LTOs or RTOs, subject to conditions deemed appropriate.
3. Transfer of Tax Liabilities
o Tax liabilities from cancelled registrations are transferred to the retained registration.
o If the registrations are under different LTOs/RTOs, the Commissioner of the cancelled registration ensures tax files and arrears are transferred to the office of the retained registration.
⚡ Step-by-Step Guide if You Have Multiple Registrations
1. Identify all active sales tax registrations for your business.
2. Decide which registration to retain as your main one.
3. Submit intimation to the concerned Commissioner Inland Revenue at your RTO about the cancellations.
4. Surrender other registrations officially to ensure compliance.
5. Confirm transfer of tax liabilities and files from cancelled registrations to the retained registration.
6. Seek approval for exceptions if you have multiple manufacturing units in different jurisdictions.
💡 FAQs on Multiple Sales Tax Registrations
Q1: Can I keep two registrations for the same business activity?
No. Only one registration per business activity is allowed unless the FBR grants exceptions for manufacturing units in different jurisdictions.
Q2: What happens to taxes under cancelled registrations?
All tax liabilities and arrears are transferred to the retained registration automatically.
Q3: How do I apply for a separate registration for a new manufacturing unit?
You must seek approval from the FBR, which may grant a separate registration under its discretion.
🔍 Key Takeaways
• Only one sales tax registration per business activity is allowed in Pakistan.
• Multiple registrations must be cancelled and surrendered with proper intimation.
• Tax liabilities are transferred to the retained registration.
• Exceptions exist for manufacturing units in different LTOs or RTOs.
Disclaimer: This article is for informational purposes only. For official guidance and compliance, consult the Federal Board of Revenue (FBR) or a certified tax professional.