Pakistan VAT Calculator
Use this tool to calculate the VAT (Sales Tax) for goods and services in Pakistan. Whether including or excluding VAT, this calculator simplifies the process. Find the VAT rates in Pakistan here.
Calculation Results
Disclaimer: This tool is for informational purposes only and should not be used as legal or financial advice.
Frequently Asked Questions (FAQs) – Pakistan VAT
1. What is the standard VAT rate in Pakistan?
The standard VAT (Sales Tax) rate in Pakistan is 17%. However, some goods and services may be taxed at a lower or zero rate.
2. Who is eligible to pay VAT in Pakistan?
VAT applies to businesses and individuals who make taxable supplies of goods and services in Pakistan. Consumers, especially tourists, are generally exempt from paying VAT directly but may be subject to VAT on purchases made at retail outlets.
3. Can foreign tourists claim VAT refunds in Pakistan?
Yes, foreign tourists can claim a VAT refund on certain purchases made within Pakistan, provided the items are exported and the process is completed before departure.
4. What goods are exempt from VAT in Pakistan?
Essential goods such as basic food items, books, medicines, and certain agricultural products are exempt from VAT in Pakistan.
5. How can I calculate VAT on my purchases in Pakistan?
To calculate VAT, multiply the purchase amount by the VAT rate (17%) for goods and services subject to VAT. The VAT can either be included in or excluded from the total price, depending on the transaction.
6. Is VAT included in the price displayed in stores?
Yes, in most cases, VAT is included in the price displayed at stores. However, it is always a good idea to confirm whether VAT is included or excluded from the total price.
7. Can I get a VAT refund on online purchases in Pakistan?
Generally, VAT refunds are not available for online purchases in Pakistan. VAT refunds are usually processed for physical goods purchased in-store.
8. What documents do I need to claim a VAT refund?
To claim a VAT refund, you will need the original invoices, passport, and proof of export of the goods you purchased. It is important to complete the process at the airport before leaving the country.
9. Are there any VAT-free zones in Pakistan?
Yes, certain areas in Pakistan, such as free trade zones and specific export-oriented businesses, may be exempt from VAT. You should verify if the specific location qualifies for VAT exemptions.
10. How do I calculate VAT if the price includes VAT?
If the price already includes VAT, divide the total amount by (1 + VAT rate). For example, if the total is PKR 100 and VAT is 17%, the original price would be PKR 100 / 1.17.
11. How do I calculate VAT if the price excludes VAT?
If the price excludes VAT, multiply the amount by the VAT rate (17%) and add it to the original price to get the total price with VAT included.
12. What is the VAT exemption on exports from Pakistan?
Goods exported from Pakistan are exempt from VAT. Businesses exporting goods can claim a refund for VAT paid on inputs used to produce the exported goods.
13. Can I claim VAT back on services in Pakistan?
VAT can generally be claimed on goods purchased for business purposes. Services such as education, health care, and financial services are typically exempt from VAT in Pakistan.
14. How often do businesses need to file VAT returns in Pakistan?
Businesses registered for VAT in Pakistan are required to file monthly VAT returns. The returns must include details of taxable supplies and VAT collected during the month.
15. What happens if I don’t pay VAT in Pakistan?
Failure to pay VAT on time can result in penalties and interest charges. Repeated non-compliance may lead to further legal action, including fines or business closure.