The National Board of Revenue (NBR) has issued a directive asking the seller organization to pay VAT in case of selling products and services through online.
The revenue board also gave an explanation on “selling products through online” stating that buying and selling of products and services through online would be meant as online purchase or sell which is acquired subject to payment of VAT from any earlier producer or service provider who does not have any own sales center.
The NBR in its explanation also said that under the overall transaction process, no matter the selling organization provides taxable or non-taxable products, five percent VAT would be charged on the provided products and services.
