As Pakistan’s digital economy continues to grow, the government is introducing new regulations to ensure fair taxation and revenue collection. One of the latest developments is the implementation of a General Sales Tax (GST) on e-commerce businesses, which has sparked concern and confusion among online sellers.
This blog breaks down what this means for your business, who is affected, what steps you need to take, and how Autodropship is here to make this transition smooth for you.
🧾 What is the New E-Commerce Sales Tax?
The Federal Board of Revenue (FBR) and provincial revenue authorities have implemented General Sales Tax (GST) for online sellers, applicable across platforms like:
- Shopify stores
- Daraz and other local marketplaces
- Social media sellers (Facebook, Instagram, TikTok Shops)
- Freelance e-commerce platforms (Fiverr/Upwork stores)
- Dropshipping and international fulfillment stores
This means all businesses selling goods or services online must now register for GST and collect applicable taxes from customers.
⚖️ Legal Framework: Sales Tax on E-Commerce
The tax implementation falls under:
- Federal Sales Tax Act 1990
- Provincial Sales Tax laws (e.g., Punjab Revenue Authority – PRA, Sindh Revenue Board – SRB)
- SROs (Statutory Regulatory Orders) issued specifically for digital platforms
GST rates range from 16% to 19%, depending on your location and the nature of your product or service.
💡 Who is Affected?
This policy applies to ALL e-commerce entities, including:
| Seller Type | Must Register? | Notes |
|---|---|---|
| Individual sellers | ✅ Yes | Even if you don’t have a registered business name |
| Small/home businesses | ✅ Yes | Selling via Instagram/Facebook is not exempt |
| Dropshippers | ✅ Yes | Local & international dropshipping models |
| E-commerce platforms | ✅ Yes | Must ensure tax is collected and submitted |
| Freelancers selling goods | ✅ Yes | Even if income is below tax threshold |
Failure to register can result in heavy penalties, account suspensions, and legal notices.
📉 What Happens If You Don’t Comply?
Here’s what non-compliant sellers risk:
- FBR or PRA issuing notices or sealing business accounts
- Bank account freezes for non-filers
- Legal proceedings and heavy fines
- Removal from marketplaces like Daraz or Shopify
- Suspension of online payment gateways
🧮 How Is the Tax Calculated?
Let’s say you sell a product for PKR 5,000.
If you’re in Punjab (GST 16%), the tax liability would be:
- PKR 800 in GST to be added to the invoice
- You’ll collect PKR 5,800 from the customer
- You submit PKR 800 to the PRA
You must file a monthly sales tax return whether you made a sale or not.
🛠️ How Autodropship Makes This Easy
We know these changes can be overwhelming, especially for new sellers. That’s why Autodropship is here to take care of all the hard stuff, so you can focus on scaling your brand.
✅ Here’s what we handle for you:
- GST and FBR Registration for your e-commerce store
- Monthly sales tax return filing
- Invoicing with tax breakdowns (automated)
- Legal guidance & compliance support
- Consultation for sellers earning below tax thresholds
- Dropshipping setup that’s 100% tax-compliant
- Integration with payment gateways & POS
💬 “We handle the tax headaches, so you can keep making sales.”
📣 Final Thoughts
The new e-commerce sales tax in Pakistan is a serious step toward formalizing the digital economy — and it’s here to stay. Whether you’re running a full-time Shopify store or selling from your living room, this affects you.
But you don’t have to do it alone.
Autodropship has your back — offering a complete compliance + automation solution for sellers in Pakistan and abroad.
🔗 Get Started with Autodropship Today
📞 Call / WhatsApp: +92-319-5458738
🌐 www.autodropship.pk
📧 sales@autodropship.pk
“Compliant, automated, and stress-free dropshipping — the way it should be.”
