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Sales tax invoice in Pakistan — what it must show
If your business is registered for sales tax, every sale needs a sales tax invoice. It looks like an ordinary bill, but it carries both parties' tax numbers and shows the tax on each line separately.
Sales tax rates and rules change, and they differ by goods, services and province; some businesses must also invoice electronically through FBR. Check the current rules for your business with FBR, your provincial revenue authority or your tax adviser. This page is general guidance.
What a sales tax invoice shows
- Seller (supplier): name, address, NTN and STRN (sales tax registration number)
- Buyer: name, address, NTN or CNIC, and STRN if registered
- Invoice number and date — numbers in order
- Each item or service: description, quantity and value excluding tax
- The sales tax rate and amount
- The total including tax, and the amount in words
Working out the tax — an example
Say you sell 2 split ACs at Rs 145,000 each (excluding tax), plus installation, at a rate of 18%:
| Item | Value | Tax 18% | Total |
|---|---|---|---|
| 2 × split AC | 290,000 | 52,200 | 342,200 |
| Installation | 10,000 | 1,800 | 11,800 |
| Total | 300,000 | 54,000 | 354,000 |
Value = quantity × rate. Sales tax = value × 18 ÷ 100. Total = value + tax. If there is a discount, take it off the value first, then work out the tax.
Three ways to make one
- Excel: download the free sales tax invoice format — the tax and totals are formulas. English and Urdu.
- Online: fill in the sales tax invoice generator and download a PDF, no login.
- App: in InvoiceMate every invoice is saved with its tax and sent on WhatsApp as a PDF.
Common mistakes
- Leaving out the buyer's NTN or STRN
- Invoice numbers out of order, or one number used twice
- Charging tax on the full amount when the discount should have come off first
- Using the wrong rate — not every item has the same rate
- A broken Excel formula giving a wrong total — send a PDF so it cannot be changed
Questions
How is a sales tax invoice different from an ordinary bill?
It shows the seller's and buyer's tax registration numbers, each line's value excluding tax, the tax rate and amount, and the total including tax, all separately.
What is the sales tax rate?
The federal standard rate on goods has generally been 18%, but many goods and services have other rates, and services carry provincial sales tax. Check the current rate for your sale with FBR or your provincial authority.
Can I make a sales tax invoice in Excel?
Yes — the free Excel format works out the tax and totals. Make a PDF before you send it.
Does this tool submit invoices to FBR?
No. It only makes the invoice. Businesses that must use FBR electronic invoicing have to follow FBR's own process.
Is there an Urdu version of this guide?
Yes — سیلز ٹیکس انوائس کیسے بنائیں, in the Urdu guides.