Odoo for Pakistan: FBR Sales Tax & Pakistani Localization

Pakistan Tax System in Odoo

Pakistan's Federal Board of Revenue (FBR) administers federal taxes including sales tax, income tax, and customs duty. Businesses registered with FBR must file monthly sales tax returns and comply with withholding tax obligations.

Sales Tax Configuration

# Pakistan Sales Tax:
# Standard rate: 18% (General Sales Tax)
# Reduced: 10% (certain items)
# Further tax: 3% (unregistered buyers)
# Extra tax: 1% (luxury items)

# Provincial Sales Tax (services):
# Punjab (PRA): 16%
# Sindh (SRB): 13%
# KPK (KPRA): 15%
# Balochistan (BRA): 15%
# ICT: 16%

Company Setup

# Company registration:
# NTN (National Tax Number): 7-digit
# STRN (Sales Tax Registration): 13-digit
# CNIC: for sole proprietors
# Currency: PKR (Pakistani Rupee)

# Chart of accounts:
# Pakistani chart based on IAS/IFRS
# Customize for local reporting needs

Withholding Tax

# Pakistan WHT (Income Tax Ordinance 2001):
# Goods supply (registered): 4%
# Goods supply (unregistered): 4.5%
# Services (registered): 8%
# Services (unregistered): 10%
# Contracts: 7%
# Rent (company): 15%
# Commission/brokerage: 12%

# Configure as purchase taxes in Odoo
# Creates withholding entry on vendor bills
# Monthly deposit to FBR via CPR

FBR Integration

# Monthly Sales Tax Return:
# Filed via FBR IRIS portal
# Due by 18th of following month

# Annexures required:
# Annex-A: Sales (output tax)
# Annex-B: Purchases (input tax)
# Annex-C: Supplies to unregistered
# Annex-H: Imports

# From Odoo: export invoice/bill data
# Map to FBR format for IRIS submission

E-Invoicing (CNIC Condition)

# FBR requires CNIC for retail sales > PKR 100,000
# POS Integration mandate for Tier-1 retailers
# FBR POS system tracks real-time sales

# Odoo POS can be configured to:
# Capture buyer CNIC on qualifying sales
# Generate FBR-compliant invoice format
# Track POS integration requirements

DeployMonkey for Pakistan

Deploy Odoo for your Pakistani business on DeployMonkey. The AI agent configures 18% GST, provincial sales tax, withholding tax rates, and FBR-compliant accounting.