NTN and tax basics for online sellersآن لائن سیلرز کے لیے NTN اور ٹیکس کی بنیادی باتیں

Important: This guide is general information to help you understand the basics. It is not tax or legal advice. Tax rules in Pakistan change with each year's Finance Act, and your situation depends on your business. Confirm the details with a qualified tax adviser or with FBR directly.

You don't need an NTN to join the AdeelSab waitlist. But as your online sales grow, understanding the basics will help you avoid paying more tax than necessary.

What is an NTN?

An NTN (National Tax Number) is your identification number with the Federal Board of Revenue (FBR). It shows you are registered for income tax.

For individuals, including sole proprietors who run a shop in their own name, your CNIC number is used as your NTN once you register with FBR. Companies and partnerships receive a separate NTN.

How individuals register

Registration for individuals is done online through FBR's IRIS portal and is free of charge. You will generally need:

• Your CNIC
• A mobile number registered in your own name, because verification codes are sent to it
• An email address
• Your business details, such as the shop name and address, if you are registering a business

FBR's website has step-by-step registration instructions. Many tax practitioners also help sellers register for a small fee.

What is the Active Taxpayers List (ATL)?

Being registered is not the same as being active. The Active Taxpayers List (ATL) is FBR's list of people and businesses who have filed their income tax return for the relevant year.

Why it matters:

• Withholding tax rates on many transactions, such as bank transactions, some business payments, property and vehicles, are usually higher for people not on the ATL.
• Some businesses and platforms ask for your ATL status.

To stay on the ATL, you generally need to file your annual income tax return on time.

Checking your ATL status

You can check your ATL status on FBR's website, or by SMS. FBR has published an SMS service where you send ATL (space) your 13-digit CNIC to 9966. Confirm the current method on FBR's website, as services can change.

Sales tax registration

Income tax (NTN) and sales tax are different. Some businesses must also register for sales tax and receive an STRN. Whether this applies to you depends on things like the type of business and its size. Services may also fall under provincial sales tax authorities rather than FBR.

This is an area where rules change often, so ask a tax adviser whether sales tax registration applies to your business.

Records to keep from day one

Good records make tax filing easier and cheaper, whatever your situation:

• Sales. Every order, its amount and date. Your AdeelSab payout statements help here.
• Purchases. Invoices for stock you buy.
• Expenses. Packaging, shop rent, utilities, transport and staff.
• Payouts received. Bank, JazzCash or Easypaisa statements.
• Tax deducted. Any withholding tax certificates you receive.

Keep them together, by month, for at least the period your tax adviser recommends.

Quick summary

• You can join AdeelSab without an NTN.
• For individuals, registration with FBR through IRIS is free, and your CNIC number becomes your NTN.
• Filing your annual return keeps you on the Active Taxpayers List, which usually means lower withholding tax.
• Sales tax is separate. Ask an adviser whether it applies to you.
• Keep records of sales, purchases and expenses from your first order.