Which taxes apply to a restaurant in Pakistan?

Income tax on the business, sales tax on restaurant services through the provincial authority in most provinces, POS integration obligations where notified, plus withholding duties and local licences.

Is POS integration mandatory for restaurants?

Notified categories of restaurants must run integrated POS systems where receipts are reported and verifiable. It also gives owners real visibility against sales leakage.

How should delivery platform sales be recorded?

Record gross order value as sales and platform commission as an expense, then reconcile platform statements to bank payouts monthly.

Restaurant Tax Compliance in Pakistan: The Owner's Checklist

Restaurants attract compliance from more directions than most businesses: federal, provincial, POS integration and local licensing all at once. Here is the checklist we run for restaurant clients.

Registrations

NTN for the business, and STRN or provincial service registration depending on jurisdiction and what you sell.
Provincial sales tax on restaurant services runs through SRB, PRA or the relevant authority in your province.
Food authority licensing and local trade licences sit alongside tax, and inspectors do talk to each other.

POS integration

Restaurants in the notified categories must run integrated point of sale systems where every receipt is reported and verifiable. Integrated POS also ends the classic staff leakage problem, because voided and unrecorded sales become visible to the owner too.

The monthly rhythm

Sales reconciled from POS to returns, with delivery platform statements matched to payouts.
Withholding on rent, and on suppliers where you qualify as a withholding agent.
Returns filed on statutory dates, nil months included for any registration.

Delivery platforms deserve attention

Commissions, withholding by platforms and the gap between gross orders and net payouts confuse many owners' books. Record platform sales gross, with commission as an expense, and reconcile monthly.

The payoff

A compliant restaurant sells at higher multiples, borrows more easily and survives inspections without envelopes. We run this entire checklist as a monthly service for food businesses, POS included.