The Federal Board of Revenue (FBR) has updated Rule 5A of the Sales Tax Rules, 2006 for the tax year 2026, explaining process for temporary sales tax registration. This allows manufacturers to register temporarily for importing machinery before their plant becomes operational.
This guide explains what temporary registration is, who can apply, and the step-by-step procedure for obtaining it.
What is Temporary Sales Tax Registration?
Temporary sales tax registration is a short-term registration granted to individuals or companies planning to start manufacturing but who have not yet installed machinery. It allows the importer to:
• Import machinery and raw materials
• Comply with sales tax requirements before full registration
The temporary registration period is 60 days and is subject to specific conditions.
Step 1: Eligibility Criteria
A person can apply for temporary registration if they are:
• Filing for sales tax registration as a manufacturer
• Planning to import machinery for installation
⚠ Applicants without installed machinery can only use temporary registration to import plant and equipment.
Step 2: Application Procedure
The application process is fully online via FBR’s IRIS system:
1. Submit complete application along with:
o List of machinery to be imported
o Bill of Lading (BL) or Goods Declaration (GDs)
2. The temporary registration certificate will be issued within 72 hours of submitting a complete application.
Step 3: Import Approval
After receiving temporary registration:
• The applicant can import machinery and raw materials as a manufacturer
• Must submit a post-dated cheque to customs, equal to the duties and taxes they would claim as a manufacturer
✅ This ensures compliance until full registration requirements are met.
Step 4: Compliance and Validity
• Temporary registration is valid for 60 days
• If full registration requirements are not met within 60 days, the registration will be disabled and the post-dated cheque may be cashed
• Applicants must file monthly returns in STR-7
• Sales tax invoices cannot be issued, and no input tax credit is allowed during this period
• Sales tax refunds are not available, but input tax can be carried forward to future returns
Quick FAQs: Temporary Sales Tax Registration
Q1: Who can apply for temporary registration?
Manufacturers planning to import machinery before installing their plant.
Q2: How long is temporary registration valid?
60 days from the date of issuance.
Q3: Can I issue sales tax invoices with temporary registration?
No. Any invoice issued will not allow input tax credit.
Q4: What happens if I don’t fulfill registration requirements in 60 days?
Temporary registration will be disabled, and the post-dated cheque may be cashed.
Q5: Are sales tax refunds available during temporary registration?
No. Input tax can only be carried forward to future returns.
Tips for Manufacturers
• Ensure all machinery details and BL/GDs are complete before applying
• File monthly STR-7 returns on time to avoid penalties
• Plan full registration before 60 days to avoid cheque forfeiture
Conclusion:
Temporary sales tax registration in Pakistan is designed to facilitate manufacturers in importing machinery before starting operations. Compliance with FBR’s rules ensures smooth transition to full registration and avoids legal or financial penalties.
Disclaimer: This article is for informational purposes only and does not constitute legal or financial advice. Consult the Federal Board of Revenue (FBR) or a certified tax professional for official guidance.