VAT & SD Act 2012
Section 31 - Payment of advance tax during import and adjustment
(as updated till Finance Ordinance 2025)
1[ (1) Every registered or eligible to be registered person shall make advance payment of VAT payable on the supply of imported goods at the rate mentioned in sub-section (2).
2[(2) In the manners and conditions prescribed by the Board, an advance tax at the rate of 3[2 (two)] percent in case of inputs imported for manufacturing goods and in other cases at the rate of 4[7.5 (Seven point Five)] percent of the VAT imposable base value of the taxable import shall be payable at the same time and in the same method as VAT is payable on a taxable import. ]
(3) 5[Except as provided in sub-section (3A),] every registered importer who has made a payment of advance tax may‚ in prescribed manner‚ claim in the return of the related tax period or within the next 6[six tax periods]‚ a decreasing adjustment equal to the amount paid as advance tax.
7[(3a) Where 7.5 (seven point five) percent advance tax has been paid by the commercial importer at the import stage, VAT shall not be payable on the first sale after importation, provided that the value added at the local level does not exceed 50 (fifty) percent, subject to the issuance of an invoice in the prescribed manner. ]
(4) Any person who has paid advance tax but is not registered may in prescribed manner make an application to the Commissioner for refund of such advance tax.
(5) The Commissioner shall dispose of it in prescribed manner after receiving such application. ]
1 Section 31 was substituted by section 69 of the Finance Act, 2019 (Act No. 10 of 2019) with effect from 30 June 2019.
2 Section 31(2) was substituted by section 58(a) of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
3 The words “such acquisition relates to transportation service” were substituted by section 61(b) of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
4 The number, brackets and words “7.5 (seven decimal five)” were substituted by section 4(a) of the Finance Ordinance, 2025 (Ordinance No. 28 of 2025) for the number, brackets and words “5 (five)”.
5 “Except for the purposes of sub-section (3A)”, the words, numbers, brackets and symbols were inserted by section 4(b) of the Finance Ordinance, 2025 (Ordinance No. 28 of 2025).
6 Section 48 was substituted by section 62 of the Finance Act, 2020 (Act No. 09 of 2020) with effect from 01 July 2020.
7 Sub-section (3A) was inserted by section 4(c) of the Finance Ordinance, 2025 (Ordinance No. 28 of 2025).
Disclaimer: This is the authentic English text of The Value Added Tax and Supplementary Duty Act 2012, as published under SRO No. 440-Law/2025/326-Mushak dated 05 November 2025. In the event of any inconsistency or conflict between the content on this website and the official Government publications or gazette notifications relating to laws, rules, regulations or SROs, the official Government publications and notifications shall prevail.