Sales Tax & PRAJanuary 05, 2026• 7 min read
Sales Tax Audit Defense & Disallowed Input Tax Credits under FBR & PRA
Navigating input sales tax disallowances, Section 8B 90% input cap restrictions, and provincial revenue authority (PRA/SRB/BRA/KPRA) dual-jurisdiction conflicts.
Key Legal Takeaways
- Input tax claimed on purchases from inactive/blacklisted suppliers can trigger FBR show cause notices.
- Section 8B limits monthly input tax adjustments to 90% of output tax payable.
- Appellate appeals before Commissioner Appeals & ATIR resolve unjust tax demands.
Federal and provincial sales tax audits regularly target registered businesses for input tax credit disallowance based on supplier non-compliance. Our advocates represent manufacturers, distributors, and service providers in defending sales tax returns, proving legitimate purchase invoices, and securing full input tax adjustments.
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