Sales Tax Calculator Pakistan (18%)

The sales tax calculator Pakistan computes sales tax at the current standard rate of 18% (15% for services in some provinces and jurisdictions), including the FED additions on specific goods. Enter the selling price exclusive or inclusive of tax, and the calculator converts instantly between the two and shows the tax payable on your invoice.

Sales tax in Pakistan is a value-added tax charged at every stage of the supply chain: a manufacturer charges 18% on sales to a distributor, the distributor claims input and charges output, and the final consumer absorbs the difference. Understanding gross-up - adding 18% on top of a price - and how input tax offsets output tax is the heart of daily business accounting.

Enter the price either before tax (exclusive) or after tax (inclusive), select the standard rate or a custom rate for goods or services, and the calculator shows the tax amount and the base price on the other side. Use the toggle to switch between inclusive and exclusive views.

• Enter the price in the appropriate box.
• Pick the rate - 18% goods, or 15% services.
• Read the tax component and the complementary price.
• Use the custom rate box for specific categories.

Sales tax is calculated as a percentage of the price of goods or services: for goods the standard rate is 18% under the Sales Tax Act 1990, with FED of 2.5% to 20% on items such as cigarettes, beverages and mobile phones added on top. For services, Islamabad and most provinces charge 15% through their provincial sales tax on services acts. When a price is quoted inclusive, the tax is backed out by dividing the amount by 1.18 (for 18%) and subtracting.

In a registered business, input tax paid on purchases is set off against output tax charged on sales, and only the difference is deposited monthly with FBR (by the 15th of the following month). The calculator performs the invoice-level arithmetic; the return-level netting belongs in the FBR monthly sales tax return (ST-03) workflow.

• Rate is selected from the standard 18% or the services 15%.
• For an exclusive price, tax = price x rate.
• For an inclusive price, tax = price - (price / (1 + rate)).

A manufacturer sells goods worth Rs 200,000 exclusive of tax. The invoice shows Rs 200,000 plus 18% sales tax of Rs 36,000, a total of Rs 236,000. If the buyer pays Rs 236,000 inclusive, the tax component is 236,000 / 1.18 = 200,000 base, and 36,000 tax.

That same manufacturer paid input tax of Rs 20,000 on raw materials during the month. Its ST-03 return reports output tax 36,000, input tax 20,000, and the net payable deposited to FBR is Rs 16,000.

• Adding 18% on an inclusive price - the tax must be backed out with the divisor, not multiplied.
• Using the 18% goods rate for services - provincial services are 15%.
• Forgetting that unregistered buyers cannot claim input tax, which is why the retailer cash registers print the NTN on every receipt.
• Missing the monthly filing date - the ST-03 is due by the 15th and late filing carries penalties and surcharge.