Digital payment sales attract 1% WHT for active filers (2% for non-filers), while Cash on Delivery attracts 2% for filers (4% for non-filers). Finance Act 2026 changes the treatment: it is adjustable above Rs. 200 million turnover, while smaller sellers can opt out of final treatment when filing from Tax Year 2027.
The Two Ecommerce WHT Rates You Must Know
FBR's Section 153(2A) of the Income Tax Ordinance 2001 applies specific WHT rates depending on how the customer pays:
Final-tax treatment is no longer universal. The tax is adjustable where turnover exceeds Rs. 200 million. A person with turnover up to Rs. 200 million may opt out of the final tax regime when filing from Tax Year 2027.
Who Deducts the WHT and When?
| Payment Method | Who Deducts WHT | Section | Rate (Active / Non-filer) |
|---|---|---|---|
| Digital — card, bank transfer, mobile wallet | Payment intermediary (Daraz Pay, bank, gateway) | 153(2A)(I) | 1% / 2% |
| Cash on Delivery | Courier company (TCS, Leopards, Call Courier) | 153(2A)(II) | 2% / 4% |
| Marketplace commission / brokerage | Online marketplace (Daraz etc.) — Clause 28C | 233 | 5% |
Per the KPMG Tax Year 2026 Rate Card, persons not appearing on the Active Taxpayers List are subject to 100% increased WHT rates across all applicable transactions — the single most powerful reason to maintain active filer status.
Daraz Seller Tax Obligations
Daraz operates as both a payment intermediary and marketplace under FBR rules, making it a withholding agent for your sales proceeds. Here is what happens on each order:
📦 Digital Payment Order — Rs 10,000 via JazzCash
The Rs 100 is deposited to FBR and should appear on the tax deduction certificate. Its final or adjustable treatment depends on turnover and the Tax Year 2027 option described above.
🚚 COD Order — Rs 10,000 via TCS
COD carries a higher rate than digital — another reason to encourage customers to pay online.
⚠️ Non-Filer COD Order — Rs 10,000
On Rs 500,000 monthly COD revenue, non-filer status costs you Rs 120,000 extra per year versus a filer — eliminated by simply filing your annual return.
Online Marketplace Brokerage WHT
Under Section 233, Clause 28C of the Second Schedule (KPMG Tax Year 2026 Rate Card), persons running an online marketplace pay a reduced brokerage WHT of 5% on commission income — lower than the standard 12% for other commission agents. This supports Pakistan's digital economy push.
Offshore Digital Services Tax
Payments to offshore platforms — Facebook Ads, Google Ads, AWS, Shopify — attract 15% final WHT under Section 152(XII) of the Income Tax Ordinance, deducted by Pakistani banks. Note that the new Digital Proceeds Levy Act 2025 may interact with this — where DPL has been collected, Section 152(XII) WHT may not apply for the same transaction. Verify with your bank.
Sales Tax Obligations for Ecommerce
- If your annual ecommerce turnover exceeds Rs 10 million, you must register for sales tax — see our Sales Tax Registration Guide →
- Products sold online are subject to the same 18% GST as offline sales
- Cross-border ecommerce (importing goods to resell) triggers customs and Section 148 import taxes — see our Import Business Tax Guide →
How to Stay Compliant as an Ecommerce Seller
- Register with FBR and get your NTN — see our FBR Registration Guide →. This is the single most important step.
- File your annual income tax return by September 30 every year to stay on the Active Taxpayers List.
- Collect WHT certificates from Daraz, couriers, and payment gateways. Reconcile them against your IRIS tax ledger.
- Favour digital payments over COD — 1% vs 2% is a direct margin gain at scale.
- Register for sales tax if turnover exceeds Rs 10 million.
- Maintain transaction records for at least 5 years for potential FBR audits.
Non-filer cost at scale: On Rs 1,000,000/month COD revenue, non-filer status (4% vs 2%) costs Rs 240,000 extra per year in WHT — money permanently lost, not recoverable, all avoidable by filing one annual return.