PRA issues notices to Google, Facebook for not paying sales tax in Pakistan

Sales Tax on Facebook, Google Pakistan
image:NetChoice

If you are using Google’s popular ad services i.e AdSense and AdWords for your online business (blog, website etc), you might need to worry. A warning has been issued to the company for not paying the sales tax in Pakistan. The company needs to pay its taxes in seven days, otherwise, a serious action is expected.

According to details as reported in media, the Punjab Revenue Authority (PRA) has sent the notices to the Google Pakistan and Facebook for not paying taxes on their advertising services. The sales tax on the online advertisement was imposed in 2013, but both the companies have never paid their taxes.

PRA has reportedly sent the notices to the Google’s regional office located at the Arfa Karim IT Tower, Lahore. The authorities in PRA said that Google is providing its advertisement services to a large number of business organizations in Pakistan.

In Pakistan, the 16% sales tax was imposed in 2013 on advertisement services, however, Google has never paid tax. According to the sources of PRA, a deadline of seven days is given to the Google Pakistan to get its sales tax registration.

Facebook also failed to pay sales tax in Pakistan

On the other hand, American social networking company Facebook also reportedly failed to pay the sales tax in Pakistan. PRA has sent the notice to Mark Zuckerberg, who is the founder of this company.

We can say that the PRA might issue notices to the local websites and blogs too for paying the tax.

It is worth mentioning here that a few months ago, it was reported by many media outlets that the internet-based communication services like Skype, WhatsApp, and Facebook might soon need an official permission or license to provide their services in Pakistan.

The license will be issued to these online services only after they agree to the terms and conditions of Pakistan Telecommunication Authority (PTA).

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