Pakistan E-commerce Tax Guide 2026: FBR Rules for Online Sellers

If you sell online in Pakistan, whether through your own website, a marketplace such as Daraz, or an Instagram or Facebook shop, FBR taxes you under the same rules as any other business. You pay income tax on your profit, file an annual income tax return, and may also have to register for sales tax. There is no separate "digital economy tax" or special 2026 regime for online sellers. This guide covers registration, income tax for tax year 2026, when sales tax applies, and tax that platforms deduct from your payouts.

Is there a special tax regime for online sellers in 2026?

No. Earlier articles on this site used headlines such as "digital economy tax", "simplified tax regime for online businesses", "new presumptive tax for digital sellers" and "FBR documentation drive 2026". Most of those articles admitted in their own text that no measure with that name had been announced. We have not been able to confirm that any of them exists as a separate regime.

In practice, online sellers are taxed under the Income Tax Ordinance, 2001, and, for goods, the Sales Tax Act, 1990, like any other business. If a future Finance Act does create a special scheme for online sellers, it will be new law with its own FBR notification. Rely on that notification, not on a forecast.

What has changed is visibility. FBR gets transaction data from banks, payment gateways and marketplaces, so selling online doesn't keep your income out of view.

Tax year 2026 at a glance

• Tax year 2026 covers income earned from 1 July 2025 to 30 June 2026 (FY 2025-26).
• Return deadline: for individuals and associations of persons (AOPs), the return is normally due by 30 September after the tax year ends, so 30 September 2026 for tax year 2026. FBR sometimes extends the deadline, so check for an announcement. Our filing deadline guide explains how to file on time.
• Taxes that can apply: income tax on your profit, sales tax if you are registered or required to register, and withholding tax deducted from payments to you.

Step 1: Register for an NTN on IRIS

Your National Tax Number (NTN) identifies you to FBR. If you run the business as an individual (sole proprietor), your CNIC works as your NTN once you are registered.

1. Go to the FBR IRIS portal at iris.fbr.gov.pk and choose Registration for Unregistered Person.
2. Enter your CNIC, name, a mobile number registered in your own name, your email address and your address.
3. Enter the verification codes FBR sends to your phone and email, then set your password.
4. Complete the registration form, including the nature of your business (for example, online business) and your bank account details.
5. Submit. You'll get confirmation by email and SMS.

A partnership (AOP) or a company registers as an entity and gets its own NTN.

Step 2: Work out your taxable income

Profit from online selling is normally taxed under the head income from business. Tax is charged on your net profit, not on your total sales:

Taxable income = gross sales − allowable business expenses

Allowable expenses are costs incurred wholly and exclusively for the business. For an online seller they typically include:

• cost of the goods you sell
• shipping and delivery charges
• marketplace commissions and payment gateway fees
• advertising and marketing, including social media ads
• rent and the business share of utility and internet bills
• staff salaries and professional fees, such as an accountant
• depreciation on business assets like computers and cameras

Our guide to deductible business expenses explains what you can claim and how to document it.

The rate of tax depends on your taxable income and on whether you trade as an individual, an AOP or a company. For current rates, see the tax slab tables.

Step 3: File your annual return

1. Gather your sales records, marketplace and payment gateway statements, bank statements, purchase invoices, expense receipts and any withholding tax certificates.
2. Log in to IRIS, open Declaration and choose the return of income for tax year 2026.
3. In the business section, enter your gross receipts, your allowable expenses and your net profit or loss. Declare any other income, such as salary or rent, in its own section.
4. Enter tax already deducted from your payments so that it is credited against your liability.
5. Complete the wealth statement (assets and liabilities). It must reconcile with the income you declare.
6. If tax is payable, generate a Payment Slip ID (PSID), pay through your bank or online banking, and enter the payment details in the return.
7. Submit the return.

If your income is below the taxable limit, whether you're legally required to file depends on your circumstances. Filing is still how you get onto the Active Taxpayers List (ATL), and being on the ATL means lower withholding tax on many transactions.

When does sales tax apply to online sellers?

Sales tax is separate from income tax. Who collects it depends on what you sell:

Goods. Whether you have to register with FBR depends on what kind of supplier you are, not only on your turnover. For example, importers have to register, and so do Tier-1 retailers. Our source articles gave conflicting turnover thresholds for other sellers, so we don't quote one here. Check FBR's current rules or ask a tax adviser before you conclude you're below a limit. If you aren't required to register, you can still register voluntarily, which lets you claim input tax on your purchases.

Services. Provincial rates and registration rules differ by province and by type of service, and they change in provincial budgets. Check with the authority of the province concerned.

Exports. Exports of goods are generally zero-rated for sales tax, which means no sales tax is charged on them. The profit is still subject to income tax.

Once you're registered for sales tax, you have to:

• issue a sales tax invoice showing the tax charged on each sale
• keep records of all sales and purchases
• file a monthly sales tax return and pay the tax due by the 15th of the following month
• pay the difference between the tax you charged (output tax) and the tax you paid on business purchases (input tax)

Our sales tax guide covers registration, returns and e-invoicing in more detail.

Tax deducted by marketplaces and payment platforms

Marketplaces, payment gateways and banks may deduct withholding tax from the money they pay you. Non-filers usually face higher rates than people on the ATL. The rate depends on the type of payment and your filer status, so check the current FBR withholding tax card rather than relying on a figure quoted online.

Tax deducted this way is normally an advance payment, not an extra cost:

• Download the platform's deduction statement or ask for a tax deduction certificate.
• Enter the tax deducted in your annual return so it is credited against your final liability.
• Check that the platform has your correct CNIC or NTN, so the deduction is credited to you.

Our guide to withholding tax rates and claiming credit explains how to claim it.

Once your business pays salaries, rent, commissions or fees for services, you may also become a withholding agent yourself. That means deducting tax from those payments, depositing it with FBR and filing withholding statements.

Records to keep

Good records let you claim every expense and defend your return if FBR asks questions. Keep:

• sales invoices, order confirmations and platform sales reports
• purchase invoices for stock and supplier bills
• bank statements, ideally for a bank account used only for the business
• payment gateway and marketplace payout statements
• shipping and courier receipts
• advertising invoices
• inventory records and an asset register
• withholding tax certificates and statements

Digital records are fine, as long as they are complete, backed up and easy to retrieve.

Frequently asked questions

I only sell through Facebook or Instagram. Does this apply to me?

Yes. The platform doesn't change your obligations. Profit from selling online is taxable whether you sell on your own website, a marketplace or social media.

The marketplace handles my payments and already deducts tax. Do I still need to file?

Yes. The tax the marketplace deducts is usually adjustable against your final liability, but you still have to declare your income and file an annual return. Many platforms provide annual statements that help with this.

I sell digital products or online courses. Which sales tax applies?

Services, including most digital services, fall under provincial sales tax on services. Check the rules of the province concerned.

I sell to customers abroad. Is that income taxed?

If you are resident in Pakistan, your income from foreign customers is generally taxable here. Exports of goods are generally zero-rated for sales tax. If you export IT or IT-enabled services rather than goods, different rules apply to that income, so check them separately.

Can I pay a fixed or presumptive tax instead of keeping accounts?

Not as an online seller in general. We could not confirm any presumptive or fixed tax scheme for online sellers for tax year 2026. Keep proper records and file under the normal rules.

This is general information, and tax rules change often. Check FBR's current notifications or ask a tax adviser about your own case.