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How is sales tax on services handled in digital invoicing?
Sales tax on services is charged by the provincial revenue authorities and, for the Islamabad Capital Territory, by the federal system. Service invoices carry the applicable services sales tax and are reported through the relevant digital invoicing rules.
Key points
- Services are generally taxed by the province in which they are provided.
- Islamabad Capital Territory services fall under the federal system.
- The correct rate and authority depend on where the service is delivered.
- Service invoices must show and report the applicable services sales tax.
Tax & Compliance
In short
Iris Connect applies the correct services sales tax on your invoices, including the 15 percent services sales tax for Islamabad-based supplies.
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