Understanding Sales Tax Registration Inactivation in Khyber Pakhtunkhwa

Running a business in Khyber Pakhtunkhwa? Keeping your sales tax registration active is crucial. This article dives into Khyber Pakhtunkhwa Finance Act, 2013, explaining the process of “inactivation” or “suspension” of your registration and how to avoid it.

When Can Your Registration Be Inactivated?

The authorities can temporarily halt your registration if they believe you:

  • Don’t qualify to be registered.
  • Haven’t fulfilled your tax obligations or followed the rules.

What Happens Next?

  1. Notification: They’ll inform you of the reasons for inactivation and the required actions to fix them within a specified timeframe.
  2. Your Response: Take necessary steps to address the concerns.
  3. Unsatisfactory Response: If no response or insufficient action is taken, your registration gets suspended.

Suspension vs. Cancellation:

  • Suspension: A temporary freeze, usually lasting 60 days. You can get reinstated by taking corrective measures.
  • Cancellation: Permanent removal from the registry, potentially following legal action.

The 60-Day Window:

During this suspension period:

  • The authorities may take legal action for non-compliance.
  • They can reinstate your registration if satisfied with your actions.
  • If neither happens, they might proceed with cancellation.


  • Cancellation doesn’t erase your past tax dues.
  • Seek professional help if unsure about your registration status or obligations.

Stay Compliant, Stay Active:

Understanding this process and acting promptly on notifications can protect your registration and ensure smooth business operations. Consult a tax advisor for specific guidance and avoid any potential suspension or cancellation!

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