Businesses Can Now Deregister Sales Tax Online as FBR Launches New Digital System (Latest Update 2025). The Federal Board of Revenue (FBR) has introduced a major reform: businesses across Pakistan can now deregister their Sales Tax Number (STRN) entirely online. This shift from manual applications to a digital-only system aims to increase transparency, reduce delays, and eliminate paperwork, making the process easier for taxpayers and more efficient for authorities.
Sales Tax Deregistration
FBR has announced a mandatory shift to digital processing for all Sales Tax Deregistration applications. This means taxpayers can no longer apply via manual forms or submit physical documents at FBR offices.
The move is part of FBR’s broader plan to strengthen digital governance, reduce human involvement, and create a transparent, traceable application workflow.
What Is the New Procedure for Sales Tax Deregistration?
Until now, businesses could deregister through both manual and online methods. But under the new policy, FBR has officially discontinued all manual submissions.
New Procedure:
All requests must now be filed exclusively through FBR’s computerized online system, available on:
- IRIS Portal (FBR Online System)
- Taxpayer Profile Management System
What this means for businesses:
- No physical forms
- No visits to FBR offices
- Mandatory use of the digital portal
- Faster, more accurate processing
The goal is to fully digitize Pakistan’s tax administration and make compliance easier for taxpayers.
Legal Framework Behind the New Procedure
The updated deregistration rules are backed by:
- Section 21 of the Sales Tax Act, 1990
- Rule 11 of the Sales Tax Rules
These laws give FBR full authority to regulate:
- Registration
- Cancellation
- Verification
- Compliance procedures
By implementing the new online system, FBR is enforcing these legal provisions while modernizing the national tax infrastructure.
What Happens to Pending Manual Applications?
If a taxpayer submitted a manual deregistration request before the new policy, they do not need to reapply.
FBR’s Clarification:
All pending manual applications will be:
- Shifted into the new computerized system
- Processed digitally
- Reviewed under the updated policy
This ensures no application is ignored or delayed unfairly.
Benefits of the New Online Sales Tax Deregistration System
FBR’s digital shift brings several major advantages:
1. Faster Processing
Online submissions greatly reduce delays caused by paperwork and human errors.
2. Complete Transparency
Applicants can track the status of their request in real time through the IRIS portal.
3. 24/7 Convenience
Apply from anywhere—no need to visit RTOs or LTUs.
4. Reduced Fraud & Manipulation
A digital trail eliminates the risk of lost files, unauthorized changes, or manual tampering.
5. Efficient Record Management
FBR can maintain centralized digital records, improving compliance monitoring.
What Should Businesses Do Now?
To comply with the new system, businesses should:
Shift Immediately to the Online Portal
All deregistration requests must be submitted through IRIS.
Prepare Required Documents
Ensure all tax filings, sales records, and compliance documents are updated.
Resolve Outstanding Liabilities
FBR will not process deregistration if the business:
- Has pending sales tax returns
- Owes any outstanding payments
- Has incomplete compliance history
Track Application Status Online
Monitor updates through the portal instead of visiting FBR offices.
FBR Introduces Stricter Checks & Auto-Blacklisting Warning
As part of the 2025 reforms, FBR has rolled out additional enforcement mechanisms:
1. Stronger Verification for Deregistration Requests
FBR will thoroughly review:
- Compliance history
- Previous sales tax returns
- Tax liabilities
- Suspicious refund claims
- Business activity level
2. Auto-Blacklisting Warning
Taxpayers with:
- Fake invoices
- Non-filing history
- Suspicious activity
may be auto-blacklisted before deregistration approval.
3. System-Generated Alerts
The online portal will now issue warnings for:
- Missing documents
- Wrong business details
- Payment discrepancies
These alerts must be resolved before the application can be approved.
Final Thoughts
The FBR’s fully digital sales tax deregistration system marks an important step toward modern, transparent, and taxpayer-friendly governance in Pakistan. Businesses must now adapt quickly, ensure compliance, and use the online system to avoid delays or penalties.
