PRA Sales Tax Registration in Pakistan is essential for service providers. Punjab Revenue Authority Sales Tax Registration in Pakistan is a legal obligation for all individuals and businesses providing taxable services in the province of Punjab. Governed by the Punjab Sales Tax on Services Act, 2012, this registration allows service providers to collect and remit sales tax to the Punjab Revenue Authority (PRA) and ensures compliance with provincial tax regulations.
What is PRA Sales Tax Registration?
PRA Sales Tax Registration is the process by which businesses or individuals offering taxable services in Punjab become formally recognized by the Punjab Revenue Authority. Upon successful registration, entities receive a Punjab National Tax Number (PNTN) and Sales Tax Registration Number (STRN), which are essential for:
- Issuing tax invoices
- Filing monthly returns
- Claiming input tax adjustments
- Maintaining compliance with PRA regulations
Who is Required to Register?
Any person or business entity — including individuals, companies, and Associations of Persons (AOPs) — offering taxable services within Punjab must register with the PRA. This includes both resident and non-resident service providers operating under the scope of the Punjab Sales Tax on Services Act, 2012.
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Online Registration Process via PRA Portal
The PRA has streamlined the sales tax registration process through its online portal, making registration more accessible for businesses across the province. Here’s how to register:
- Access the PRA Portal
Visit the PRA official website and go to the registration section. - Initiate a New Registration
Select “New Registration” to begin the process. - Enter Basic Information
Complete the online form by providing:- Registration basis (mandatory or voluntary)
- Type of applicant (Individual, Company, AOP)
- CNIC, NICOP, Passport, or SECP registration number (depending on entity type)
- Captcha Verification
Complete the CAPTCHA to confirm a valid submission. - Submit Details
Click Submit to proceed to document upload and verification.
Required Documents for PRA Sales Tax Registration
The required documents may vary slightly depending on your business structure, but generally include:
- Registration application form
- National Tax Number (NTN) certificate
- CNICs of individual or company directors/partners
- SECP registration documents (for companies)
- Partnership deed (for AOPs)
- Proof of business premises (utility bill, ownership or lease document)
- Business registration or license
- Bank account certificate in the business name
- Copy of official business letterhead
Note: All documents should be scanned clearly and submitted in ZIP format via PRA’s email or upload section.
Post-Registration Compliance Requirements
Once registered and issued an STRN, businesses must:
- Charge and collect sales tax at applicable rates
- Issue tax-compliant invoices
- Maintain detailed records of transactions and taxes
- File monthly PRA sales tax returns electronically
- Deposit collected tax with the Punjab government by the due date
Non-compliance can result in penalties, legal notices, or suspension of the registration.
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Deregistration from PRA Sale Tax
If your business discontinues operations or no longer meets the registration criteria (e.g., drops below the turnover threshold), deregistration may be required. This can be:
- Voluntary: Submit a deregistration application along with relevant documents such as:
- CNIC
- Proof of business closure
- Bank statements
- Tax clearance certificate
- Return filing history
- Automatic: PRA may deregister inactive or non-compliant entities after due process.
Important: All outstanding tax liabilities must be cleared before applying. Deregistration may take up to three months.
Tax Liability on Business Closure
Even after closure, company directors, owners, and partners remain jointly and severally liable for any unpaid taxes under PRA regulations. It is crucial to:
- Conduct a tax audit
- File all pending returns
- Pay any dues
- Seek legal or tax advice before finalizing business dissolution
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Best Practices for Staying Compliant
To maintain smooth operations and avoid legal complications:
- Track Deadlines: Mark return filing and tax payment dates
- Keep Records: Maintain organized and accurate financial documentation
- Stay Updated: Monitor changes in PRA rules and tax rates
- Consult Experts: When unsure, consult a tax professional familiar with PRA compliance
PRA Sales Tax Registration in Pakistan is a crucial step for businesses providing services in Punjab. By understanding the process, preparing the necessary documents, and fulfilling post-registration duties, businesses can ensure legal compliance, avoid penalties, and strengthen their position in the formal economy.
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