Pakistan's split tax regime — federal GST on goods, four different provincial service taxes — is one of the most complex tax environments in Asia. ERP makes compliance manageable.
Federal vs Provincial Jurisdiction
Goods are taxed under federal Sales Tax Act. Services in Sindh are taxed by SRB, Punjab by PRA, KP by KPRA, and Balochistan by BRA. The classification of your business activity determines which authority you file with.
Mixed Businesses: The Worst Case
Businesses that provide both goods and services face both regimes simultaneously. A manufacturer that also installs equipment may be subject to both FBR sales tax and provincial service tax on the same project.
ERP Tax Configuration for Pakistan
ERP must maintain separate tax accounts for each authority, apply correct rates by transaction type and customer location, and generate compliant returns for each authority independently.
SRB and FBR Integration
SRB and FBR both have e-filing systems with specific data formats. ERP should generate returns in the correct format for each authority, reducing the risk of filing errors.
Bizvinc ERP serves 23 industries across Pakistan and the UAE. Book a free demo to see how we solve the specific challenges in your industry.
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