The Federal Board of Revenue (FBR) has issued updated guidelines for Sales Tax registration under the Sales Tax Rules, 2006 for the tax year 2026. Businesses and individuals required to register for sales tax must now follow the updated procedures through FBR’s IRIS system.
This guide walks you through the step-by-step process of sales tax registration and highlights the latest updates for 2026.
Who Needs to Register for Sales Tax?
According to Rule 5 of the Sales Tax Rules, 2006, any person making taxable supplies must register before starting business operations. Registration can be completed by:
• The business owner
• An authorized partner, member, or director
Step 1: Application through IRIS (Form STR-1)
Applicants must submit Form STR-1 online via IRIS. The application should include:
• The RTO jurisdiction based on business type:
o Public limited companies – place of registered office
o Other companies –
Manufacturing/processing: place of factory
Non-manufacturing: location of main business operations
o Unincorporated persons – where business is carried out
o Single manufacturing unit with separate office – jurisdiction of the manufacturing unit
⚠ Large Taxpayer Office jurisdictions remain unchanged, but FBR may transfer registrations if required.
Step 2: Upload Required Documents
Applicants with NTN or Income Tax registration must upload the following:
• Bank account certificate
• Gas and electricity registration/consumer numbers
• Branch details (if multiple locations)
• GPS-tagged photographs of business premises
• Manufacturers: GPS-tagged photos of machinery & industrial meters
• Single shareholder companies, associations, or individuals (non-manufacturers): balance sheet showing capital, assets, and liabilities
Note: IRIS may require Commissioner approval if some documents are missing for individual or small businesses.
Step 3: Registration Approval
Once all documents are uploaded:
• IRIS will register the applicant after verification by the Local Registration Office (LRO)
• The LRO must approve the registration through an official order in IRIS
Step 4: Biometric Verification
After registration:
1. Visit the e-Sahulat Centre of NADRA within one month for biometric verification
2. Failure to complete verification may result in removal from the Active Taxpayer List (ATL)
3. Annual re-verification is required every July for individuals, associations, and directors of single-shareholder companies
Step 5: Manufacturer Verification
• FBR may conduct pre-verification, post-verification, or both
• Field offices or third-party auditors may be assigned to verify authenticity of documents
Step 6: Handling Discrepancies
If a document is found to be non-genuine or incorrect:
• FBR will issue a 15-day notice to submit missing or corrected documents
• Failure to comply may result in removal from the ATL, pending approval by Member (IR-Operations), FBR
Quick FAQs: Sales Tax Registration 2026
Q1: Can an unincorporated person apply online?
Yes, the business owner can apply through IRIS using Form STR-1.
Q2: Is biometric verification mandatory?
Yes, both initial and annual verification are required for individuals, associations, and single-shareholder companies.
Q3: What happens if my registration documents are rejected?
You will receive a 15-day notice to submit corrected documents. Non-compliance may remove your name from the ATL.
Q4: Do manufacturers have special requirements?
Yes, GPS-tagged photos of machinery and meters are required, and FBR may verify your operations pre- or post-registration.
✅ Pro Tip for Businesses: Ensure all documents are genuine and complete before applying through IRIS. Missing or fake documentation can lead to removal from the ATL and delay your business operations.
Conclusion:
The 2026 Sales Tax registration updates by FBR aim to streamline the process while ensuring compliance and transparency. Businesses and individuals should follow the outlined steps carefully to avoid delays or penalties.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. For official guidance, consult the Federal Board of Revenue (FBR) or a certified tax professional.