Karachi, August 5, 2025 – In a major move to formalize the rapidly expanding e-commerce ecosystem, the Federal Board of Revenue (FBR) has announced detailed sales tax rules governing the collection and deduction on digitally ordered goods.
The new regulations, issued via SRO 1429(I)/2025, introduce amendments to the Sales Tax Rules, 2006, specifically targeting online marketplaces, payment intermediaries, and courier companies operating in the digital transaction chain.
These changes, according to the FBR, aim to ensure transparent and efficient sales tax compliance in Pakistan’s booming online retail sector. Under Rule 150ZZM, titled Responsibility of Online Marketplace, Payment Intermediary and Courier, the FBR has laid out specific obligations for each stakeholder involved in digital commerce.
According to the rules, payment intermediaries or couriers that facilitate the settlement of payments for digitally ordered taxable goods must deduct sales tax as outlined in the Eleventh Schedule of the Sales Tax Act, 1990. They are then required to remit the balance amount to the vendor or supplier.
If the withholding agent is a payment intermediary, it must deposit the deducted sales tax and submit a monthly statement (STR-35) detailing transactions, vendors, and taxable supplies by the 10th of the following month.
Similarly, courier companies acting as withholding agents must deposit the sales tax and file a monthly STR-36 statement electronically. Online marketplaces in Pakistan are also obligated to file STR-34, summarizing supplier-wise digitally ordered taxable goods delivered each month.
In cases where the online marketplace is also offering courier services, it must additionally submit the STR-36 statement required from courier companies.
Furthermore, both payment intermediaries and couriers must provide official certificates of sales tax deduction to suppliers. These certificates must include the supplier’s name, registration number, description of digitally ordered goods, and the exact amount of tax withheld and paid.
The FBR’s initiative underscores its commitment to strengthening Pakistan’s digital tax infrastructure while promoting fair and accountable online trading practices. By introducing these comprehensive rules, the FBR aims to widen the tax net and prevent leakages in revenue from the country’s thriving e-commerce sector.