One of the most common questions from twin-city businesses is simple: 'Where do I register for sales tax?' The answer depends on what you sell and where you deliver it.
Goods: always FBR
Manufacturers, importers, wholesalers and retailers of goods register with FBR under the Sales Tax Act 1990, anywhere in Pakistan. The standard rate is 18%.
Services in Islamabad: FBR (ICT)
Services rendered in Islamabad Capital Territory are taxed under the ICT (Tax on Services) Ordinance 2001, administered by FBR. Rates vary by service, with many at 15%.
Services in Rawalpindi: PRA
Rawalpindi is in Punjab, so service providers register with the Punjab Revenue Authority. Rates are typically 16%, with reduced rates for IT, restaurants paying by card and some other categories.
Businesses serving both cities
Many firms have an Islamabad office but Rawalpindi clients, or the reverse. You may need registration with both authorities and must apportion revenue correctly. We design the simplest compliant structure for you.
Documents and timeline
Registration takes 3–7 working days with NTN, bank certificate, premises documents and CNICs. FBR also requires biometric verification at a NADRA e-Sahulat centre.
