FBR Directs Sales Tax Registration of Low-Risk Applicants Within 3 Working Days

ISLAMABAD: The Federal Board of Revenue (FBR) has directed that sales tax registration applications submitted by low-risk applicants be processed on a priority basis and completed within three working days.

The FBR’s Revenue Division Inland Revenue has formally issued Sales Tax General Order No. 20 of 2026, outlining a risk-based mechanism for processing sales tax registration applications.

Under the order, applications will be processed according to computerized risk parameters. Low-risk applications containing all required information and documents will be given priority and processed within the prescribed timeframe.

The relevant Local Registration Office will process complete low-risk applications without unnecessary delay and, where possible, grant registration within three working days.

According to the FBR, additional documents or information may be sought from a low-risk applicant only where such requirements are specifically prescribed under the Sales Tax Act, 1990, the Sales Tax Rules, 2006, are necessary to verify information provided by the applicant, or where the computerized risk management system identifies a specific risk.

The FBR has directed that whenever an application requiring further scrutiny is referred to the relevant officer, the specific reasons must be electronically recorded. No application should be kept pending without a valid reason.

If an application is incomplete or any required document or information is missing, incorrect or insufficient, the applicant will be informed through the computerized system within seven days of submission.

The notification must clearly specify the required documents or information, the identified deficiency or discrepancy, the method for rectifying it and the timeframe allowed for compliance.

The General Order also makes it clear that no general or vague objections may be raised. Every objection must be specific, relevant and traceable to a legal or regulatory requirement.

Once an applicant provides the required documents or information and the application becomes complete, the applicant will not be required to initiate the registration process again. The application will instead be processed immediately.

To facilitate the registration of genuine manufacturing businesses, the FBR has also directed representative sectoral associations of manufacturers operating under the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) to provide pre-registration certification regarding the particulars and existence of their member applicants.

The sectoral associations may certify, based on their available records, that an applicant is engaged in or intends to undertake the relevant manufacturing activity.

The certification may cover whether the declared business premises or factory is identifiable, whether the applicant is a member of the association where applicable, whether the proposed manufacturing activity corresponds with the relevant sector and whether the particulars provided by the applicant have been verified against available records.

The FBR said the certificate issued by a sectoral association would be submitted electronically, along with other documents, to the relevant Local Registration Office by the applicant or the association.

The certificate will serve only as pre-registration verification assistance and will not replace any statutory requirement under the Sales Tax Act, 1990 or the Sales Tax Rules, 2006. It will also not provide the applicant with any exemption, concession or legal immunity.

The relevant association will be held responsible if incorrect information is discovered during physical verification.

Under the General Order, the relevant Local Registration Office will conduct pre-physical verification of manufacturer applicants within three working days under Rule 5(5) of the Sales Tax Rules, 2006. The outcome of the verification will be recorded electronically, after which the application will be processed without unnecessary delay.

The FBR clarified that the risk-based sales tax registration mechanism will continue, while high-risk or suspicious applications may be subjected to additional scrutiny, pre-verification, post-verification or other verification measures in accordance with the law.

The low-risk classification will not prevent the FBR from carrying out subsequent verification if new information indicates a potential risk, non-existence, misrepresentation, forged documents or any other irregularity.

The FBR has directed all Chief Commissioners Inland Revenue and Commissioners Inland Revenue to ensure strict implementation of the General Order.