Pakistan to require details on goods' value and quantity in monthly sales tax returns

• Those who produce, import, distribute and sell taxable goods in Pakistan must report on their monthly sales tax returns the value and quantity of goods produced, acquired and sold, beginning with the January 2025 return.

The Pakistan Federal Board of Revenue (FBR), through SRO No. 55(I)/2025 dated 24 January 2025, has introduced significant changes to the monthly sales tax return form. These changes require all registered manufacturers, commercial importers, distributors and wholesalers supplying taxable goods to provide on the return both the value and quantity of the goods produced, acquired and sold.

In the absence of a specific effective date, the changes likely take effect immediately and will be applicable to sales tax returns filed for January 2025 and thereafter.

Key Changes

Submission of "Annexure — J" by manufacturers

All registered manufacturers supplying taxable goods are now required to submit, with their monthly sales tax return, "Annexure — J," which was previously required only for specific sectors. The required information includes the description of goods (HS Code, Unit of Measurement), the value of opening stock, goods manufactured and supplied during the tax period and closing stock along with their quantities.

Submission of "Annexure - H1" by importers and distributors

Registered commercial importers, distributors and wholesalers supplying taxable goods are now required to provide itemized/product-wise (HS code-based) quantity and stock details in the newly introduced Annexure - H1 form, along with their monthly sales tax return. All information required in Annexure - H1 will be based on the cost or purchase price of the registered person.

Compliance implications

Filing the Annexures J and H1 will be mandatory, starting with the January 2025 sales tax return.

Of key importance immediately will be determining the closing stock as of 31 December 2024, which can then be declared as the opening stock in the January 2025 sales tax return.

For additional information concerning this Alert, please contact:

EY Ford Rhodes, Karachi

• Haider Ali Patel
• Salman Haq 
• Muhammad Saleem 

EY Ford Rhodes, Lahore & Islamabad

• Muhammad Awais 
• Aamir Younas 

Published by NTD’s Tax Technical Knowledge Services group; Carolyn Wright, legal editor

For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.