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Khyber Pakhtunkhwa Sales Tax on Services Calculator (KPRA)
Provincial sales tax on services in Khyber Pakhtunkhwa, administered by the Khyber Pakhtunkhwa Revenue Authority (KPRA) under the KP Finance Act (Sales Tax on Services). Select a service category and enter the value excluding tax.
Khyber Pakhtunkhwa Sales Tax on Services: Categories & Rates at a Glance
Every category below is drawn directly from the calculator above, grouped by tariff heading. Where a category lists a lower rate for a specific condition (digital payment, government works, etc.), that condition is noted alongside it.
| Service Category | KPRA Rate |
|---|---|
| General | |
| Standard rate (default for services not listed below) | 15% |
| Specifically Amended / Notified Rates (May 2026) | |
| Rental / leasing services | 3% |
| Real estate services | 3% |
| Renting/leasing of meters & goods transport operator leasing | 3% |
| Transportation of goods through pipeline | 5% |
| Foreign exchange dealers / money changing services | 3% |
| Motor vehicle insurance services | 3% |
| Intellectual property / IP licensing services | 5% |
| Publishing & reproduction services | 5% |
| Health-related services | 2% |
| Restaurants / hotels – digital, card, wallet or QR payment | 6% |
| Annual developmental projects (construction-related services) | 4% |
Rates shown are as reflected in the calculator above and may not include every condition, exemption or turnover threshold that applies to a specific taxpayer. Always confirm your exact tariff heading with the KPRA before filing.
Understanding Khyber Pakhtunkhwa Sales Tax on Services (KPRA)
Who has to register with KPRA?
Any person or business providing a taxable service under the Khyber Pakhtunkhwa Finance Act (Sales Tax on Services) — and rendered or provided in Khyber Pakhtunkhwa — is generally required to register with the KPRA and charge sales tax on its invoices. This spans a wide range of sectors captured in the table above, from hotels and restaurants to professional and IT services.
Why rates differ by category
KPRA sets a general rate for most services, but a number of categories carry their own notified rate — sometimes lower to reflect a policy priority (health, low-cost housing, digital payment adoption), sometimes conditional on a specific circumstance. These category-specific rates are revised periodically through provincial Finance Acts and standalone notifications, so it's worth re-checking a rate that matters to your business each year.
Filing and payment
Registered persons file periodic sales tax returns with KPRA (typically monthly), declaring the output tax charged on their invoices net of any input tax credit, and deposit the balance by the statutory due date. Late filing or short payment can trigger default surcharge and penalties under the Act, separate from any federal FBR obligations the same business may also have.
How this differs from federal GST and withholding
Khyber Pakhtunkhwa's provincial sales tax on services is separate from federal GST, which taxes the sale of goods under the Sales Tax Act, 1990 — a business dealing in both goods and services can owe both taxes on different parts of the same transaction. Separately, when a company or other designated withholding agent pays a registered service provider, it may need to withhold a portion of the sales tax shown on the invoice and deposit it directly with KPRA. Use the "Check Withholding Tax" tab above, or the full Sales Tax Withholding calculator, to work that out.
Worked Example: A KPK Consulting Services Invoice
A Peshawar-based consulting firm invoices a client Rs. 300,000 at KPK's 15% standard rate.
A handful of categories — rental/leasing, real estate, foreign exchange dealing, motor vehicle insurance, IP licensing, publishing, and digital-payment restaurant/hotel bills — carry their own notified rate instead of this 15% default; check the category dropdown above for your specific service.
Frequently Asked Questions
What is the standard sales tax rate on services in KPK?
The default rate under the KP Sales Tax on Services Act is 15%, applying to services not covered by one of the specific category rates notified separately by the Khyber Pakhtunkhwa Revenue Authority (KPRA).
Why do only some categories have a different rate listed?
KPRA periodically amends the First and Second Schedules of the KP Sales Tax on Services Act 2022 to set specific rates for particular categories — this calculator reflects the categories we could source rate changes for as of the May 2026 notification. Any category not explicitly listed should be treated as falling under the 15% standard rate unless you confirm otherwise with KPRA.
Is KPK sales tax on services different from federal GST?
Yes — federal GST (18%) applies to goods under the Sales Tax Act, 1990, while KPK's sales tax on services is a separate provincial levy on services rendered in Khyber Pakhtunkhwa, administered by KPRA under its own legislation.
Does withholding apply to KPK sales tax invoices?
Generally yes, following the pattern used across FBR and the provincial authorities — a withholding agent typically deducts a portion of the sales tax shown on an invoice from a registered service provider. KPRA regulations also separately reference a 50% residual withholding rate for some non-standard categories, so confirm which rule applies to your specific service.
What is the KPRA sales tax rate on IT-based services in Khyber Pakhtunkhwa?
Most services in KP are taxed at the flat standard rate of 15%. A specific set of categories notified in May 2026 carry their own lower rates, but general IT-based services are not among the specifically reduced categories, so the 15% standard rate applies unless your exact service is separately notified.
Which Khyber Pakhtunkhwa services get a reduced sales tax rate?
A group of categories notified in May 2026 carry rates well below the 15% standard: health-related services (2%), rental/leasing and real estate services (3%), transportation of goods through pipeline (5%), and restaurants/hotels accepting digital, card, wallet or QR payment (6%), among others.
How current are the KPK rates shown here?
We were not provided the full, consolidated First and Second Schedule for KPK, so this calculator reflects the specific rate changes we could source plus the 15% default for everything else. KPRA revises its schedules periodically — confirm your exact tariff heading and current rate with KPRA or a tax advisor before filing.