You will see a line on your invoice reading KPRA Tax — 5%. This is the most common question we get, so here is the plain answer.
What it is
KPRA stands for the Khyber Pakhtunkhwa Revenue Authority. Services sold in Khyber Pakhtunkhwa carry a sales tax on services, and web design, hosting, branding and marketing all fall under it. NEO Business Solutions is registered with KPRA under registration number 1730178406471.
Why it is on your invoice
It is not our charge and we do not keep it. We collect it on the government’s behalf and pass it on. Under Section 8 of the KP Finance Act 2021, the responsibility for collecting it sits with us as the service provider — which is why it appears as a line on your bill rather than something you handle yourself.
Can I pay the tax directly instead?
No. Clients cannot deposit KPRA tax on their own behalf for our services. If it is not cleared with the invoice, KPRA can recover the amount from us along with a default surcharge and penalty. That is the reason the invoice terms state it must be paid together with the invoice.
Is it charged on everything?
It applies to the services on your invoice at the rate shown. The rate on your invoice is the one in force at the time it was issued — if the Authority changes it, later invoices will show the new figure.
I am a registered business — can I claim it?
If your business files sales tax returns, your accountant may be able to adjust input tax. Keep the invoice: it carries our registration number, which is what they will ask for. We are not tax advisors, so please take that question to your own accountant.