ISLAMABAD – The Federal Board of Revenue (FBR) has introduced new sales tax rules for online orders through a fresh amendment in the Sales Tax Rules 2006. Under the updated law, an 18% sales tax will now apply to all digital orders.
This move brings e-commerce more firmly under the tax net and aims to enhance compliance in the growing online retail sector.
According to the official notification, online marketplaces, courier companies, and payment agents must now deduct sales tax at the source. The tax will also apply to cash-on-delivery transactions. The FBR has added a new chapter to the Sales Tax Rules 2006 to clarify these obligations. This step ensures that digital sales are treated the same as traditional retail.
The FBR has introduced two new reporting forms, STR-34 and STR-36, to monitor the new system. Marketplaces must submit monthly reports of all orders through the STR-34 form. They are also required to provide order-level details for every supplier. If the platform provides courier services, it must also file the STR-36 form with FBR.
Courier companies are now responsible for deducting and submitting sales tax each month. They must file the STR-36 form by the 10th of every month. Payment agents must also deduct tax and deposit it with FBR. The deducted amount must be supported by a tax certificate provided to the vendor.
The FBR stated that these certificates should include the vendor’s name, registration number, product details, and the tax deducted.
This new framework strengthens tax collection from the rapidly growing online business sector. It reflects the government’s commitment to expanding the tax base and ensuring fair taxation for all commercial channels
