VAT Calculator vat-calculator.net
Pakistan, Islamabad Capital Territory: standard rate: 15% reduced rate: 5%
This page covers sales tax on services in Islamabad Capital Territory. Pakistan's federal sales tax on goods is a separate tax.
Advanced mode: You will see the effect of rounding on the VAT amount to be paid. See how the calculation is done.
See also: Percentage calculator
Tax calculator needs two values. You can e.g. fill in tax % and price - and get price before tax as result. Price before tax and price are rounded.
You can also choose the tax % by clicking the percentage in the table below.
Pakistan, Islamabad Capital Territory | |
| standard rate | 15% Taxable services subject to the standard rate under Table 1, unless a special rate applies. Includes hotel accommodation and restaurant services paid for in cash. |
| reduced rate | 5% Restaurant and similar prepared-food services paid for by debit or credit card, mobile wallet or QR scanning, without input tax deduction or refund. This payment-based reduction does not cover hotel accommodation. Other specified services also qualify, including software or IT-based system development consultancy under Table 2, subject to its conditions. |
| zero rate | 0% Qualifying exports of services are zero-rated. Table 2 also provides a zero rate for specified construction services, property dealing and real estate agency services, and certain approved low-cost housing development services. These Table 2 zero rates do not allow input tax deduction or refund. |
| Past changes: | |
| 1 Jul 2021 | Exports of services become subject to a statutory 0% sales tax rate. Federal Board of Revenue – ICT Tax on Services Ordinance |
| 1 Jul 2018 | The sales tax rate on qualifying information-technology and IT-enabled services is reduced from 16% to 5%. Federal Board of Revenue |
Note! The VAT information on this page is general information, not tax advice. The information is not exhaustive. VAT rules include many exceptions and special cases. Check the treatment of your situation in the tax administration's guidelines. The information was checked on 22 Sep 2026.
Pakistan, Balochistan | ||
| higher rate | 19.5% | |
| standard rate | 15% | |
| special and reduced rates | 10% 8% 6% 5% 4% 3% 2% 1% | |
Pakistan, Khyber Pakhtunkhwa | ||
| telecommunication | 19.5% | |
| standard rate | 15% | |
| special and reduced rates | 10% 6% 5% 4% 3% 2% 1% | |
Pakistan, Punjab | ||
| telecommunication | 19.5% | |
| standard rate | 16% | |
| special and reduced rates | 15% 8% 5% 3% | |
VAT rounding: the EU, the UK and other European countries
The EU VAT Directive and the Court of Justice of the European Union leave VAT rounding rules to be decided at national level. National rules vary. In the UK, HMRC allows VAT on B2B invoices to be rounded down to the nearest whole penny.
Roundings in VAT calculation: Mathematically impossible prices?
There are a whole range of VAT-inclusive prices that cannot be mathematically arrived at if the tax is calculated from the VAT-free price. One example is 3.99. These prices are also possible, but then the VAT-free price must be interpreted as rounded.
VAT Gap - How much VAT is left uncollected in EU countries?
9.5% of VAT was left uncollected in EU countries. See the list of EU countries and candidate countries.
In Europe there is VAT - in the US sales tax
In Europe, companies belonging to the production chain account for the VAT paid by the consumer to the state in proportion to their value added. The US sales tax, on the other hand, is billed entirely by the company that made the consumer sale. Sales tax is paid to local operators, not to the state.
Many of today's taxes were already in use in Antiquity. Deciding on taxation has moved from autocrats to parliaments and the level of taxation has risen. In earlier times taxes were used to wage wars, today taxes are used to maintain welfare states.