Business · Section 153(1)(a) · Tax Year 2026-2027
WHT on Supply of Goods Calculator
Calculate the withholding tax deducted on your invoice for goods supplied — 5% for filers, 10% for non-filers (company suppliers).
Step by step
How supply of goods WHT is worked out
Enter your invoice amount
The gross value of the goods supplied, before deduction.
Choose your filer status
Filers pay 5%; non-filers pay double at 10%. Non-company suppliers are 5.5%/11%.
See the tax withheld
Your buyer deducts this before paying you.
Check your net payment
What you receive after withholding.
Good to know
Supply of goods WHT essentials
Who withholds
Companies, exporters and other notified "prescribed persons" withhold this tax when paying suppliers.
Usually adjustable
Most suppliers can adjust this withholding against their year-end tax liability.
Manufacturer exceptions
Some manufacturer categories have reduced or different rates — check your specific notification.
Reading the result
Withheld from your invoice before you are paid
A supplier invoicing a company for goods will not receive the invoice value. The buyer withholds this tax and deposits it against the supplier's account, so the bank credit is the invoice less the deduction.
Suppliers who price without allowing for it discover the gap on the remittance advice. Suppliers who treat the deduction as lost money discover, later, that it was claimable all along.
It is income tax paid in advance, not a cost of sale
The amount withheld counts against your own income tax for the year. It belongs in your tax credits at filing, not in your cost of goods sold. Posting it as an expense both overstates your costs and forfeits the credit.
That makes the withholding certificate from each customer worth collecting as you go. Reconstructing a year of deductions from bank statements in October is avoidable work.
Not every buyer withholds
The obligation falls on prescribed withholding agents — companies, government bodies and certain other categories — not on every customer. Selling the same goods to a walk-in buyer and to a corporate customer produces different net receipts for the same price.
Where this stops
This is income tax withholding. Sales tax withholding on the same invoice is a separate regime with its own rates and its own return.
That side is covered by the sales tax withholding calculator.
FAQs
Supply of goods WHT FAQs
What is Section 153(1)(a) withholding tax?
It requires a "prescribed person" (companies, exporters, and other notified payers) to withhold tax when paying for goods supplied to them — 5% for filers and 10% for non-filers where the supplier is a company (5.5%/11% for others), on the gross invoice value.
Is this tax adjustable or final?
For most suppliers of goods, this withholding is adjustable against their final tax liability at year end, though some categories may be subject to minimum tax treatment — confirm with a tax advisor.
Who withholds this tax?
The buyer (a company, exporter or other notified withholding agent) deducts the tax when making payment to the supplier and deposits it with FBR.
Does the rate differ for manufacturers?
Yes. Toll manufacturing carries 9%/18% for companies and 11%/22% for others, while rice, cotton seed and edible oil are 1.5%/3%. The default here is the company rate of 5%/10% — change it to match your supplier category.
Related tools
Check services and contracts WHT too
Section 153 also covers services and contract payments at different rates.
Open Services WHT Calculator