# Sales tax calculator Pakistan 2026-27 — 18% GST on goods

Source page: https://valem.run/calculators/pakistan/vat

Pakistan charges federal sales tax of 18% on the value of taxable goods, plus a further 4% when the buyer is not registered or not on the active taxpayers’ list; exports are zero-rated, and services are taxed separately by the provinces.

**Tax year:** 2026-27

## How it is calculated

Section 3(1) of the **Sales Tax Act 1990**, as consolidated by the FBR to 30 June 2026, charges sales tax at **eighteen per cent** of the value of taxable supplies and imports. Section 3(1A) adds a **further tax of 4%** on a supply to a person who is not registered or not an active taxpayer, unless SRO 648(I)/2013 excludes the supply. Section 4 zero-rates exports and the goods in the Fifth Schedule; it keeps the further tax on Fifth Schedule goods, while an export goes to a buyer abroad.

So Rs100,000 of goods carries **Rs18,000** of sales tax, or Rs22,000 sold to an unregistered buyer. To take the tax out of a price, divide by 1.18. For goods the Board notifies under section 3(3A), the buyer pays the tax instead of the seller.

A manufacturer must register unless it is a **cottage industry** — no industrial gas or electricity connection, in a residential area, at most ten workers and turnover of at most **Rs8 million** a year. Failing any one test makes a manufacturer register. Importers, wholesalers, dealers, distributors, retailers liable to sales tax and exporters claiming refunds register whatever their turnover. Services (provincial sales tax), reduced Eighth Schedule rates, retail-price goods and exemptions are not covered. Estimate, not tax advice.

## Worked example

With Amount of 100,000, this model computes Sales tax charged of 18,000 PKR.

## Inputs

| Name | Label | Type |
| --- | --- | --- |
| `amount` | Amount (PKR) | number |
| `direction` | This amount is | string |
| `category` | What is being supplied | string |
| `unregisteredBuyer` | Buyer is not registered or not on the active taxpayers’ list (4% further tax) | boolean |
| `reverseCharge` | Goods notified under s.3(3A) — the buyer pays the tax | boolean |
| `annualTurnover` | Annual turnover of a manufacturer (PKR) | number |
| `industrialConnection` | Has an industrial gas or electricity connection | boolean |
| `residentialArea` | Located in a residential area | boolean |
| `overTenWorkers` | Labour force of more than ten workers | boolean |

## Sources

- [Sales Tax Act 1990 (FBR, amended to 30 June 2026) ss.3(1), 3(1A), 4](https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf) (checked 2026-11-01)
- [Sales Tax Act 1990 ss.2(5AB), 14: cottage industry Rs8 million, registration](https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf) (checked 2026-11-01)
- [Sales Tax Act 1990 s.3(1A): further-tax exclusions by SRO 648(I)/2013 as amended](https://download1.fbr.gov.pk/Docs/20267171373418951SalesTaxAct1990updatedupto30.06.2026.pdf) (checked 2026-11-01)

## What this page claims

The Valem engine reproduces this model's formula through 11 self-test cases. That shows internal consistency, not that the formula matches current law; the cited sources are the evidence for that. Estimate, not tax advice.

## For agents

- Model manifest (formula, constants, test vectors): https://valem.run/calculators/pakistan/vat.json
- Compute by URL: https://valem.run/calculators/pakistan/vat.json?amount=100000
- MCP: https://valem.run/mcp/calculators (call `calculate` with calculator `pakistan/vat`)