Daraz Seller Tax in Pakistan 2026: Rates, NTN & Filing

Introduction

If you sell on Daraz, the money that reaches your bank account is not the full amount your customer paid. Before it arrives, a bank, a payment gateway or a courier has usually deducted income tax in your name and sent it to the Federal Board of Revenue (FBR). Many new sellers only notice this when their first settlement looks smaller than expected.

This guide explains how that tax works in practice for Daraz sellers in 2026. It covers what is deducted, who deducts it, whether you need an NTN, how final and adjustable tax differ, how to reconcile your payouts, and what to do at return time. For the wider legal framework across all online channels, you can also read our broader e-commerce tax guide for Pakistan. This article stays focused on the practical questions Daraz sellers ask.

All rates and rules below were checked against official FBR documents as of 26 October 2026. Tax law changes with each Finance Act, so always confirm the current position before you rely on a figure.

Quick Answer

Daraz sellers in Pakistan face tax deducted at source under Sections 6A and 153(2A) of the Income Tax Ordinance, 2001: 1% of the gross amount on online payments and 2% on cash on delivery for sellers on the Active Taxpayer List, doubling for non-ATL. Sellers must hold an NTN, and sales tax may apply separately.

Key points

• Daraz commission is a platform fee. Income tax is a government levy. They are different deductions.
• The deduction is calculated on the gross amount, not on your profit.
• Being on the Active Taxpayer List halves your withholding rate.
• From Tax Year 2027, sellers with turnover up to Rs. 200 million can choose the normal tax regime when filing.

What Is Daraz Seller Tax in Pakistan?

Daraz seller tax is the income tax (and, for taxable goods, sales tax) collected at source on payments you receive for goods sold through Daraz. There is no special “Daraz tax” in the law. Daraz sellers are taxed under the general e-commerce framework introduced by the Finance Act, 2025.

The FBR explains the purpose in its Income Tax Circular No. 01 of 2025-26. Many online sellers were unregistered and operating informally, so the law now collects a contribution on every digitally ordered transaction through withholding agents.

What is the difference between Daraz commission and government tax?

Commission is what Daraz charges for using its platform. Tax is what the law requires a bank or courier to withhold and deposit with the FBR under your name. Commission is a business expense. Withholding tax is a tax payment. Keep them in separate columns in your records, because they are treated differently when you calculate profit and file your return.

Is there a separate “Daraz tax” for marketplace sellers?

No. The same rules apply whether you sell on Daraz, through your own website or through social media, as long as the order is placed digitally and delivered within Pakistan. Our guide on the withholding tax rate chart for 2026-27 shows where this sits among other withholding rates.

Which Laws Apply to Tax on Daraz Sales?

Three parts of the law matter for Daraz sellers.

• Section 6A, Income Tax Ordinance, 2001: the charging section. It taxes payments received for digitally ordered goods or services through an online marketplace or website.
• Section 153(2A): the collection section. It makes payment intermediaries and couriers responsible for deducting the tax.
• Sales Tax Act, 1990: a separate regime for digitally ordered taxable goods, covered below.

The FBR’s Sales Tax Circular No. 02 of 2025-26 explains the sales tax side, including who collects it and how it is treated for different types of sellers.

How Much Tax Is Deducted on Daraz Orders?

For tax year 2027 (1 July 2026 to 30 June 2027), the FBR’s Withholding Income Tax Rate Card prescribes the following rates under Section 153(2A):

The 1% versus 2% gap is deliberate. The FBR says the lower digital rate is meant to encourage cashless payment.

Is tax calculated on gross sales or on profit?

On gross receipts. If your margin is thin, the deduction can take a large share of your actual profit. That is why margin planning matters. You can test your own numbers with our net profit margin calculator and our withholding tax calculator.

Does Daraz deduct the tax automatically?

For online payments, the bank or financial institution settling money between the marketplace and the seller acts as the payment intermediary. For cash on delivery, the courier does, and the FBR notes that this courier can be the marketplace itself where the seller uses its delivery service. Check your own seller payment statements to see how each deduction is shown. Labels can vary, so match them against your order data rather than assuming.

Do Daraz Sellers Need an NTN or FBR Registration?

Yes. The FBR’s circular states that every e-commerce seller must be registered for income tax, and that online marketplaces and couriers are barred from offering services to unregistered sellers. In practice, registration is now a condition of selling, not an optional extra.

If you are starting from zero, begin with our step-by-step NTN registration guide and the checklist of documents required for NTN registration. Registration is done through the FBR’s IRIS portal, and our IRIS registration walkthrough explains each screen. If you prefer help, our business NTN registration service handles it end to end.

Do small or home-based Daraz sellers have to pay tax?

The deduction applies to payments received for digitally ordered goods regardless of seller size. A small seller still has registration and filing duties. What changes is how the withheld tax is treated at return time, which is covered in the next section. Our guide to how small businesses file income tax in Pakistan is a good starting point for home-based sellers.

Which registration fits my seller type?

• Individual or home-based seller: a sole proprietorship is usually the simplest start.
• Two or more owners: consider partnership or AOP registration.
• Growing brand: a private limited company or a single member company may suit you better.

Compare the trade-offs in our article on sole proprietor versus company and check company registration costs before deciding.

Is Daraz Tax Final or Adjustable in 2026-27?

This is the most important change for 2026-27 and the one many older articles miss.

• Tax Year 2026 and earlier under the 2025 regime: the tax collected under Section 6A was a final tax on local e-commerce income.
• From Tax Year 2027: the FBR’s Circular No. 02 of 2026-27 explains that a new sub-section (3) in Section 6A makes the tax adjustable where turnover exceeds Rs. 200 million. A person with turnover up to Rs. 200 million may choose the normal tax regime when filing the return for tax year 2027 and onwards.

Should a small seller stay in the final regime or opt out?

It depends on your real margin and expenses. If your actual taxable profit is low, or you have meaningful costs such as advertising, packaging, rent and salaries, the normal regime may produce a lower liability. If your margins are high and your records are weak, staying in the final regime is simpler. Read our comparison of final versus normal tax regime, the guide on who can opt for the final tax regime and the steps for filing a final tax regime return. The choice is made at filing, so model both outcomes first.

How Do Income Tax and Sales Tax Differ for Daraz Sellers?

They are separate taxes under separate laws, and both can touch the same order.

According to the FBR’s sales tax circular, tax collected on digitally ordered taxable goods is treated as a final discharge for cottage industry and retailers other than Tier-1 retailers, with no input tax allowed. For other persons, the withheld tax is adjustable against output tax in the sales tax return. The same circular says e-commerce vendors, including non-residents selling digitally ordered goods, must register for sales tax.

Commentary on the Finance Act 2025 published by Business Recorder reports that digitally ordered taxable goods supplied by retailers other than Tier-1 retailers and cottage industry are subject to sales tax at 2% of the gross value of supplies, instead of the standard rate. The rate is set in the Eleventh Schedule, so check the current text before you set your prices. If you are unsure whether you need registration, start with what sales tax is in Pakistan and our sales tax registration guide. Our GST registration service and sales tax calculator can help you work out the impact.

How to Calculate Your Daraz Payout After Tax

The examples below are illustrative and use only the statutory withholding rates. They ignore Daraz commission and shipping fees, which vary and should be taken from your own statements.

Example 1: a single order

For an order with a gross value of Rs. 10,000:

Example 2: a month of sales

Suppose you sell Rs. 100,000 in a month, 60% paid online and 40% by COD.

• ATL seller: 1% of Rs. 60,000 = Rs. 600, plus 2% of Rs. 40,000 = Rs. 800. Total Rs. 1,400.
• Non-ATL seller: Rs. 1,200 plus Rs. 1,600 = Rs. 2,800.

If your margin before this tax were 10%, your profit would be Rs. 10,000, so Rs. 1,400 equals 14% of that profit. This is why the final-or-normal decision matters most for low-margin sellers.

How to work out your real profit

1. Start with gross sales.
2. Subtract returns and cancellations.
3. Subtract Daraz commission and fees.
4. Subtract product cost, packaging, delivery and advertising.
5. Treat withholding tax as a separate line, and decide how it is handled after choosing your regime.

For guidance on lawful ways to improve your position, see our article on how to reduce tax liability in Pakistan and use the tax savings calculator.

How Do Returned and Cancelled Orders Affect Your Tax?

Returns and cancellations change your real sales figure, but the tax position needs care. The FBR circulars on the e-commerce regime explain how tax is collected and reported. They do not set out a simple, automatic reversal for tax already withheld on an order that is later returned. So do not assume the deducted amount comes back on its own.

Here is a safe way to handle it:

• Record every return and cancellation with the order date, the amount and the reason.
• Check the next payment statement to see whether the sale value and any deduction were adjusted.
• Keep both sides of the story: the original deduction evidence and the adjustment.
• Report net, supported sales in your books, and ask your adviser how any unadjusted deduction should be treated in your return.

This matters because the Finance Act 2026 added a penalty where a person claims credit for tax withheld above the amount that was verifiably deducted and deposited. Clean records protect you. For more on correcting figures after filing, see how to correct mistakes in an FBR income tax return.

What Is the Difference Between Filer and Non-Filer Daraz Sellers?

A filer here means a seller who appears on the Active Taxpayer List. The difference is a straight doubling of the withholding rate in both channels, as the rate table above shows. Over a year, that can cost far more than professional compliance.

To check your position, follow our guide on how to check the Active Taxpayer List. If your status has lapsed, read how to remove inactive ATL status. For the wider picture, see late filer versus non-filer versus active filer and the benefits of becoming a tax filer.

How Do Daraz and Shopify Sellers Compare for Tax?

The rules follow the type of transaction, not the brand. A Shopify or website store selling digitally ordered goods within Pakistan is also covered. The FBR says that for e-stores with online payment, the acquiring bank is the payment intermediary, and for COD the courier or aggregator is responsible. The practical difference is who the withholding agents are and how their statements reach you, not the rate.

How Do You Read a Daraz Payment Statement?

A seller payment statement mixes sales, platform charges and tax deductions in one place. Labels can vary, so do not rely on a single word. Instead, sort every line into one of these groups:

1. Sales value: the price the customer paid for your items.
2. Platform charges: commission and any service or handling fees charged by Daraz.
3. Logistics charges: shipping or delivery costs, if they are passed on to you.
4. Adjustments: returns, cancellations or other corrections.
5. Tax deductions: income tax and, where applicable, sales tax withheld at source.
6. Net payout: what actually reaches your bank account.

Once each line is in the right group, check that sales value minus charges, adjustments and tax equals the net payout. If it does not, ask Daraz seller support for a breakdown before you record the figure in your books.

A simple spreadsheet is enough to start, and our article on small business accounting in Pakistan explains the basic setup.

How to Check Deductions and Reconcile Your Daraz Payouts

Reconciliation is what protects you at return time.

1. Export your order and payment statements each month.
2. Split orders by payment method (online or COD), because rates differ.
3. Match each settlement to your bank statement. Separate sales receipts from refunds, personal transfers and capital you put in.
4. Record commission, fees and shipping as business expenses.
5. Record returns and cancelled orders so your gross sales figure is accurate.
6. Collect evidence of every deduction. Our guide on how to get a tax withholding certificate online explains the process.

This matters more in 2026-27. Circular No. 02 of 2026-27 notes a new penalty where a person claims credit for tax withheld in excess of the amount verifiably deducted and deposited by the withholding agent. Only claim what you can prove. A monthly tax compliance checklist and sound small business accounting make this routine.

Should You Use a Separate Business Bank Account?

Yes, where you can. A separate account makes reconciliation far easier, because every credit is either a Daraz settlement or something else. When personal transfers, family money and loans sit in the same account, it becomes hard to tell what counts as sales. That can inflate the turnover you declare and make your records harder to defend.

A business account is also usually part of the documents needed for registration. Check our NTN document checklist for what is commonly asked for. If you are still choosing a structure, our guides on sole proprietorship registration and partnership registration explain how the legal form affects banking.

What Records Should a Daraz Seller Keep for FBR?

Good records turn a stressful filing into a routine task. Keep these for every tax year:

• Sales reports exported from your seller account
• Payment statements and settlement records
• Bank statements that match each settlement
• Deduction evidence from the bank, gateway or courier. See how to get a tax withholding certificate online.
• Commission and fee records from Daraz
• Purchase invoices for your stock
• Courier, packaging and advertising costs
• Return and cancellation logs
• Your NTN certificate and IRIS filing acknowledgements
• Previous returns and any notices received

Store digital copies in one folder per tax year. Our monthly tax compliance checklist turns this into a repeatable habit, and our business tax compliance guide shows how records fit into the wider picture.

How to File Your Income Tax Return as a Daraz Seller

1. Get registered and active. Make sure your NTN and IRIS access work. If you have trouble, see IRIS login problems and solutions.
2. Prepare your sales and deduction records from the reconciliation above.
3. Choose your regime if your turnover is up to Rs. 200 million.
4. File the return through IRIS. Our step-by-step income tax return guide walks through each stage. If you had no taxable income, read how to file a nil return.
5. Check the deadline. Dates can be extended by the FBR, so confirm them against our tax filing deadline page.
6. Pay any balance online and keep the receipt.

If you make a mistake after filing, see how to correct mistakes in an FBR income tax return and the difference between a revised return and a rectification application. Our annual income tax filing service for sole proprietors and filing service for partnerships and companies are available if you would rather hand this over.

Who Reports Your Daraz Sales to the FBR?

Several parties report data about your sales, so the FBR does not rely only on your return.

• Payment intermediaries and couriers collect the tax, deposit it monthly in the treasury under your name and file a prescribed withholding statement covering each seller they handle.
• Online marketplaces must file statements about the vendors using their platforms.
• For sales tax, marketplaces, payment intermediaries and couriers must file a monthly statement showing the supplier-wise amount paid and tax due on digitally ordered taxable goods.

The FBR’s circulars also provide penalties for marketplaces and couriers that fail to withhold, fail to comply with seller registration requirements, or miss their statement deadlines.

For you, the practical lesson is simple. If your return and these third-party records tell different stories, the difference is easy to spot. Reconcile before you file, and see our article on the benefits of staying a filer for why consistent compliance pays off. If you also withhold tax from your own suppliers, our quarterly withholding statements service can manage that side.

What Happens If a Daraz Seller Is Not Registered or Compliant?

• Unregistered sellers: marketplaces and couriers are barred from serving you, and penalties apply to them if they do. In practice your listings or deliveries can be blocked.
• Non-ATL status: withholding is doubled on every order.
• Late or missing returns: penalties and loss of filer status. Use the late filing penalty calculator to estimate exposure.
• Mismatched data: marketplaces, payment intermediaries and couriers must report seller-level data to the FBR, so the department can compare what they report with what you declare.

If you have already received a notice, read common reasons for FBR notices and how to respond to an FBR notice. For prevention, see how to avoid late filing penalties.

What Are the Most Common Tax Mistakes Daraz Sellers Make?

1. Treating Daraz commission as the tax. They are separate deductions.
2. Letting ATL status lapse and paying double without noticing.
3. Counting every bank credit as sales. Refunds, loans and personal transfers are not revenue.
4. Not keeping deduction evidence, which puts any credit claim at risk.
5. Ignoring sales tax, especially if you supply taxable goods and may need registration.
6. Accepting the final regime by default without modelling the normal regime.
7. Skipping the wealth statement. Fast business growth can raise questions about declared assets, so review our wealth statement guide.
8. Making withholding errors if you act as a withholding agent yourself. See withholding tax compliance mistakes businesses make.

What Is a Practical Tax Checklist for Daraz Sellers?

Use this list at the start of each tax year and review it every month.

1. Hold a valid NTN and confirm your IRIS login works.
2. Check that you appear on the Active Taxpayer List.
3. Decide whether you need sales tax registration, using our sales tax registration guide.
4. Keep personal and business money separate.
5. Export sales and payment statements each month.
6. Split orders into online and cash on delivery.
7. Match every settlement to your bank statement.
8. Log returns, cancellations and refunds.
9. Collect deduction evidence from each withholding agent.
10. Calculate your real margin with the net profit margin calculator.
11. Model the final and normal regimes before filing.
12. File on time. Check the current filing deadline and any extension.

If you file monthly sales tax returns, our sales tax filing checklist and common errors in sales tax filing help you avoid repeat mistakes.

What Changed for Online Sellers in the Finance Act 2026?

The key points from the FBR’s explanatory circular are:

• Tax under Section 6A is adjustable for persons with turnover above Rs. 200 million.
• Persons with turnover up to Rs. 200 million can choose the normal regime from tax year 2027.
• Individual traders with turnover up to Rs. 200 million are no longer prescribed persons to withhold tax under Section 153.
• A new penalty applies to claiming withheld-tax credit above the verifiably deducted amount.
• The headline 1% and 2% rates for digitally ordered goods continue for tax year 2027.

For the full budget picture, see our summary of the top 10 tax changes in the 2026-27 budget. As digital invoicing expands, also read about FBR digital invoicing.

When Does a Daraz Seller Need Professional Tax Help?

Many small sellers can manage the basics themselves. Professional help becomes worthwhile when any of these apply:

• You are registering for the first time and are unsure which structure suits you.
• Your sales are growing quickly, and your records are falling behind.
• You may need sales tax registration or monthly returns.
• You need to choose between the final and normal regimes and want the numbers modelled properly.
• Your deductions do not match your statements.
• You have received an FBR notice or need to appeal an assessment.
• You are building a brand and need advice as a startup.

Where can you find local advisers?

Online sellers can usually work remotely, but some prefer local support. If you are in Islamabad, see our pages on tax filing services in Islamabad and sales tax consultancy in Islamabad. We also publish city guides for Lahore, Karachi, Rawalpindi and Faisalabad, plus NTN registration services in Karachi.

Why Choose Baco Consultants for Daraz Seller Tax Compliance

Daraz seller tax touches registration, withholding, sales tax and annual filing at the same time. Baco Consultants is a tax and corporate compliance firm in Islamabad with services across all of these areas, including NTN registration, monthly sales tax return filing, and annual return filing for sole proprietors and companies.

We also publish free tax calculators and practical guides, such as our pages on tax compliance in Pakistan and tax advice for startups. If you want local support, you can learn more about our practice, meet the team, or see how we work as an Islamabad tax consultancy, including NTN registration services in Islamabad and FBR representation.

Frequently Asked Questions

What is Daraz seller tax in Pakistan?
It is the income tax, and sometimes sales tax, withheld at source on payments you receive for digitally ordered goods sold through Daraz, under the e-commerce framework of the Finance Act, 2025.

How much tax is deducted from Daraz sales?
For sellers on the Active Taxpayer List, 1% of the gross amount on online payments and 2% on cash on delivery. For non-ATL sellers, 2% and 4%.

Do Daraz sellers need an NTN?
Yes. The FBR says every e-commerce seller must be registered for income tax, and marketplaces and couriers cannot serve unregistered sellers.

Is the tax calculated on profit?
No. It is calculated on the gross amount of the receipt, not on profit.

Is Daraz commission the same as FBR tax?
No. Commission is a platform fee. FBR tax is a legal levy deducted by a bank or courier.

Do I still need to file a return if tax was deducted?
Yes. Filing keeps you on the Active Taxpayer List, which keeps your rate lower, and lets you claim any credit you are entitled to.

Is the tax final or adjustable?
It was final under the 2025 regime. From tax year 2027, it is adjustable above Rs. 200 million turnover, and sellers up to that level can choose the normal regime when filing.

Does sales tax also apply?
It can, for digitally ordered taxable goods. The treatment depends on whether you are a cottage industry or non-Tier-1 retailer, or another registered person.

Is the rule different on Shopify?
The rates are the same. Only the withholding agents differ, depending on whether you use a gateway or courier.

What if the deduction on my statement looks wrong?
Reconcile it against your orders and bank credits first, then request deduction evidence from the withholding agent. A tax adviser can help if the mismatch persists.

What happens to tax already deducted if a Daraz order is returned?
Do not assume it is reversed automatically. Check your next payment statement, keep the original deduction evidence, and ask your adviser how any unadjusted amount should be treated in your return.

Do I need a separate business bank account to sell on Daraz?
It is not the only way to operate, but it makes reconciliation much easier and keeps non-sales credits out of your turnover figures.

Can I get proof of the tax deducted from my Daraz payouts?
You should collect deduction evidence from the bank, gateway or courier that withheld the tax. Our guide explains how to get a tax withholding certificate online.

If I am not on the Active Taxpayer List, how do I fix it?
File the required return and follow the restoration steps in our guide on removing inactive ATL status.

Is selling on Daraz taxed differently from selling in a physical shop?
Digitally ordered sales fall under the e-commerce regime with withholding at source. A walk-in sale at a physical shop is ordinary business income under the normal rules. For physical retail compliance, see our article on FBR POS integration for Tier-1 retailers.

Is a tax calculator available for Daraz sellers?
You can use our withholding tax calculator, the business and AOP tax calculator and the FBR tax calculator guide for 2026-27 to estimate your position.

Conclusion

Daraz seller tax is simpler once you separate its parts. Commission is Daraz’s fee. Income tax is withheld at 1% on online payments and 2% on cash on delivery for ATL sellers, and doubles if you are off the list. You need an NTN, you may need sales tax registration, and from tax year 2027 sellers up to Rs. 200 million turnover can choose the normal regime when filing.

The practical steps are clear: register, stay on the Active Taxpayer List, reconcile every month, keep your deduction evidence, and decide your regime before you file rather than after.

If you would like help doing this properly, book a consultation with Baco Consultants and we will review your registration, ATL status and filing position for your Daraz business.