Obtaining a sales tax refund from the Federal Board of Revenue (FBR) remains a challenging process for many taxpayers in Pakistan. However, refund rejection can largely be avoided if the claim is filed correctly with complete and compliant supporting documents.
For tax year 2026, the updated Sales Tax Rules, 2006, particularly Rule 38, clearly define the documentation required for different types of sales tax refund claims.
📌 Refund Claims Through STARR Channel (Rule 38)
If your refund is processed through the STARR (Sales Tax Automated Refund Repository) channel, the tax officer may require one or more of the following documents:
✅ Input tax invoices or Goods Declaration (GD) for imported goods
✅ Output tax invoices and summary of invoices for local zero-rated supplies
✅ House and Master Bill of Lading, Airway Bill, or Railway Receipt as proof that goods were exported from Pakistan
✅ Any additional statement or document deemed necessary for refund verification
👉 Tip: Ensure invoices are legible, complete, and traceable to your sales tax return.
📌 Refund Claims Under Section 66 of the Sales Tax Act
For refund claims filed under Section 66, the claimant must submit a formal application containing:
✔ Name, address, and National Tax Number (NTN)
✔ Amount of sales tax refund claimed
✔ Clear reasons for seeking refund, along with:
o Input tax invoices
o Proof of payment of input tax
o Copy of the relevant order forming the basis of the refund claim
🔍 Key Verification Checks by FBR
Before sanctioning the refund, FBR verifies that:
• No prior adjustment or refund has been claimed on the same input tax
• Goods are properly recorded in inventory records
• Invoices are validated through the STRIVe system
🎖 Special Refunds for Diplomats & Privileged Persons
Diplomats, missions, and privileged organizations must submit:
• Original exemption order or FBR booklet
• Original sales tax invoice
Refunds are sanctioned only after official endorsement confirming payment.
✅ Final Takeaway
A complete, rule-compliant documentation set is the key to smooth and timely sales tax refunds in 2026. Preparing documents in line with Rule 38 and Section 66 significantly reduces delays and rejection risks.
Disclaimer: This article is for general informational purposes only and does not constitute legal or tax advice. Sales tax laws, rules, and procedures are subject to change and may vary based on individual cases. Taxpayers are advised to consult the Federal Board of Revenue (FBR) notifications or seek guidance from a qualified tax professional before filing any sales tax refund claim.