Sales Tax Active Status, What Happens When You Stop Filing
9 September 2025By Abdullah Safeer (LLB, DTL)
If you don't file your sales tax return for two consecutive tax periods, FBR automatically makes your status inactive on the Active Taxpayers List.
When a sales tax registered person does not file his return for more than two consecutive tax periods, FBR automatically makes his status inactive on the ATL.
Once inactive, every supplier you buy from is legally required to charge you an extra 4% further tax on top of the standard 18% sales tax rate.
This further tax is not adjustable, you cannot claim it back or use it to reduce future liability, so it becomes a direct financial loss on every purchase.
Missing two return filings does not just create a paper penalty, it immediately increases the cost of doing business in a real and measurable way.
The fix is consistent and timely return filing. If your status has already become inactive, filing the outstanding returns regularizes your position and stops the further tax.
Keywords
Sales tax active status Pakistan, FBR inactive taxpayer, further tax 4 percent, ATL
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