ISLAMABAD: The Federal Board of Revenue (FBR) has issued new procedures to govern the registration of e-commerce sellers and the collection of tax on digital transactions. These measures are part of a broader effort to bring the retail market into the tax net and ensure tax compliance for digitally ordered goods and services.

The FBR has released Income Tax Circular No. 01 and Sales Tax Circular No. 02, which aim to streamline the process of assigning National Tax Numbers (NTNs) to e-commerce retailers and to implement a practical withholding tax system. Under the new regime, all payments received for digitally ordered goods or services — whether via an online marketplace (OMP) or a website — will be subject to tax, with the introduction of Section 6A to tax domestic e-commerce transactions.

In line with the changes to Section 153(2A), payment intermediaries —including banks, financial institutions, forex dealers, and digital........

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