Step-by-Step Guide to Registering for Sales Tax with KPRA

Have you ever wondered where the funds come from to improve hospitals, schools, and public transportation in Khyber Pakhtunkhwa? A significant portion of this crucial revenue comes from the Sales Tax on Services (STS) collected by the Khyber Pakhtunkhwa Revenue Authority (KPRA).

Why We Pay Sales Tax on Services?

The STS isn’t just a burden on your wallet; it’s an investment in your community. When you pay a sales tax on services, you’re directly contributing to the provincial government’s budget. These funds are then allocated to essential development and social welfare projects that directly impact your life.

Registering for Sales Tax with KPRA: A Step-by-Step Guide for Sole Proprietors

Starting a business in Khyber Pakhtunkhwa? Registering for Sales Tax with the KPRA is a crucial step towards compliance. Here’s a step-by-step guide for sole proprietors using the online portal:

1. Navigate to the KPRA Online Registration Portal: Open your web browser and visit https://kpra.kp.gov.pk/Registration/NewRegistration.aspx.
2. Choose your Registration Type: Select “e-registration” from the available options. Choose whether you already have a National Tax Number (NTN) using the drop-down menu.
3. Complete the Taxpayer Registration Application: A “Taxpayer Registration Application” page will appear. Carefully enter your details in the provided fields and columns. Remember, all registry portions are mandatory.
   
4. Enter your Business Information: Under “Apply For,” select the appropriate options for Authorization, Taxpayer Type, Basis, and Registration Income Number. Provide your Name, Registration Date, Address, and Registration As details. Specify the Type of Service and your Principal Service. Indicate whether you’re applying through an intermediary or by yourself.
5. Add Branch and Bank Account Information: Provide details of all business branches, outlets, and bank accounts. All fields are required.
6. Make a Declaration and Print the Form: Review your information and confirm with the affirmation statement. Take a printout of the completed form for your records.
7. Submit your Application and Receive a Reference Number: Click on the Submit button to process your application online. You will receive a reference number upon successful submission.

Congratulations! You have now successfully submitted your application via the online registration process for sales tax with KPRA. Remember to follow any further instructions provided by the portal and keep your reference number safe for future reference.

Checklist for Sales Tax Registration (Association of Persons – AOP)

Are you starting a business as an Association of Persons (AOP) in KPK? Registering for Sales Tax is crucial for compliance and transparency. Here’s a simplified checklist of documents you need to prepare for a smooth registration process:

Essential Documents:

1. Authorization:
   • Authority Letter: If someone other than you will submit the application, provide a letter authorizing them and include their CNIC and NTN copies.
2. Identification & Taxation:
   • AOP NTN: Submit a copy of your AOP’s National Tax Number (NTN).
   • Members’ Information: Provide copies of CNICs and NTNs for all directors or members of the AOP.
3. Business Proof:
   • Electricity Bill: Present a copy of your latest (within 3 months) business electricity bill.
   • Alternative Proof: In case of no utility connection, shared bills, or self-generated electricity, submit an affidavit on stamp paper explaining the situation.
4. Business Stationery: Provide a single page of your business letterhead pad with a diagonal cross across it.
5. Financial Documentation: Choose one of the following:
   • Bank Account Statement: Submit a recent bank statement for your business account.
   • Account Maintaining Certificate: Obtain a certificate from your bank confirming your account existence.
6. Partnership Documents:
   • Partnership Deed: Submit a copy of your registered partnership deed.
   • Form-H: Provide the completed Form-H, which details partner information and profit-sharing ratios.
7. Property Proof: Show proof of ownership or rental agreement for your business premises by providing:
   • Ownership Deed: If you own the business premises.
   • Rent Agreement: If you rent the business premises.

Remember: Ensure all documents are clear and legible copies. Verify the business electricity bill reflects the address mentioned in your application. If required, obtain the authorized person’s original CNIC and NTN for verification. Keep copies of all submitted documents for your records.