Notice Regarding GST/VAT Tax Refunds and Amendments (Punjab Revenue Authority Section 22 - Amendment Order Finance Act 2020)
We appreciate your business with WiKi Hosting and look forward to continue providing you quality web solutions for your business. WiKi Hosting in compliance with Punjab Revenue Authority Amendment Order under Finance Act 2020 Issued 30 June 2020 order under Classification 9815.6000 (Information Technology Enabled Services) has now updated the General Sales Tax (GST) / Value Added Tax (VAT) to 5.00% to all customers purchasing services from us with residency in Pakistan.
Please note, due to an error at our end some customers may have been charged the standard General Sales Tax / Valued Added Tax (VAT) at the rate of 16.00%, we have gone ahead and processed refunds at 11.00% rate to adjust for the new tax rate of 5.00% for all such customers, the credit will be made available within a period of 30 days of this notice to your credit account balance, you may use this for any future purchases with us, however if you wish to get a refund to your bank account, please email email@example.com and we will be happy to remove the credit from your profile to process it for a bank transfer refund. We aim to process every request within 7 working days from the date of your request to us. Please ensure your provide your full bank account details including Bank Name, Account Holder Name, Branch Number, Account Number and a contact number should we need to contact you to process this refund. Eligibility criteria for such refunds refers to only those customers who have had invoices created after 01st July 2020.
We would further wish to notify that all our products/services/addons are now classified under Section 22 of the Amendment Order under Finance Act 2020 of the Punjab Revenue Authority (PRA) therefore all our products/services/addons will be taxable, any exemptions in the past no longer apply and the only exemption will remain to the non-residents of Pakistan.
What is Punjab Revenue Authority?
Punjab Revenue Authority is Semi Autonomous Revenue Administration for the collection of tax on services in the province. After Eighteenth Amendment to the Constitution of Pakistan collection of sales tax on Services was transferred to provincial governments by federal government.
What products are being effected?
Previously domain registration and service fees were not taxed however with immediate effect all our products/services/addons will incur 5.00% GST / VAT in compliance of the amendment order under Finance Act 2020 of the Punjab Revenue Authority (Section 22).
How are existing orders effected?
The orders have been updated with the correct rate of tax.
What is Section 22 of Punjab Revenue Act 2012?
Section 22 of the Punjab Revenue Act 2012 includes Information technology-enabled or information technology based services including software development, software customization, software maintenance, system support, system assembly, system integration, system designing and architecture, system analysis, system development, system operation, system maintenance, system up-gradation and modification, data warehousing or management, data entry operations, data migration or transfer, system security or protection, web designing, web development, web hosting, network designing, services relating to enterprise resource or management planning (including marketing of products), development and sale of smart phone applications or games, graphics designing, medical transcription, remote monitoring, telemedicine, insurance claim processing, online retrieval and database access or retrieval service.
What is the Amendment Order of Punjab Revenue Finance Act 2020?
The amendment order reduces the rate of tax on such goods and services to 5.00%, previously charged at 16.00%.
Will I receive a tax invoice?
Yes, you will receive a tax invoice following processing of your payment.
We have aimed to respond to majority questions you may have following the implementation of GST on our products and services however should you have any questions or queries please feel free to log a ticket by visiting https://my.wikihosting.pk or contact us on our WhatsApp Support Helpline at +92 336 111 9454 (WIKI) and our team will be happy to assist you.
Thank you for your understanding and cooperation.
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