FBR eases sales tax registration for businesses

Islamabad, August 25th, 2026 - The Federal Board of Revenue (FBR) has introduced new measures to simplify sales tax registration for businesses, particularly those deemed low-risk. These measures, outlined in Sales Tax General Order No. 20 of 2026, aim to expedite the process through risk-based checks for low-risk applicants.

Under the new system, applications submitted via the IRIS portal will be screened using risk-based checks. Low-risk applicants are expected to have their registrations approved within three working days, provided all required documents are included. The IRIS system will be the primary method for submitting these applications.

The FBR has instructed all field formations not to request additional documents unless legally required or flagged by the risk-based system. This directive aims to prevent unnecessary document requests and streamline the process for manufacturers.

To further facilitate manufacturers, sectoral associations under the Federation of Pakistan Chambers of Commerce and Industry are tasked with issuing pre-registration certificates to their members. These certificates will verify the applicant's manufacturing status, the identifiability of business premises, alignment of the activity with the relevant sector, and the accuracy of provided details. The certificates will be electronically forwarded to the local registration office (LRO) alongside other necessary documents.

The FBR clarified that these certificates are solely intended to expedite verification and do not substitute legal requirements or grant any exemptions. It also noted that associations will be held accountable for any false information discovered during physical checks.

Local registration offices are required to conduct on-site verification of manufacturers within three working days. Despite the streamlined process for low-risk applicants, high-risk applications will still be subjected to more rigorous scrutiny, including pre- and post-verification. Additionally, low-risk registrations may be rechecked later if irregularities are detected.

To ensure a quicker and more transparent registration process, the FBR has provided a step-by-step procedure. All applications filed through the IRIS portal will undergo a risk-based screening. Low-risk applicants will be prioritized and, if complete, processed within three working days. Field formations have been directed not to request additional documents unless legally required, necessary for verification, or flagged by the computerized risk system.

If an application is found incomplete, the applicant must be notified within seven days, explicitly detailing the missing information, the necessary corrections, and the time allowed to rectify deficiencies. The order also emphasizes that no vague or general objections should be made—every objection must be specific and directly linked to a clear requirement. Upon providing the missing information, the application should proceed without requiring the applicant to restart the process.