Tax on eBay Seller Income in Pakistan (TY 2025-26)
eBay seller tax in Pakistan TY 2025-26 - export goods regime, Section 154 bank WHT, PayPal/Payoneer remittance, business slab rates, and deductible costs.
Worked example: Rs 150,000 per month
Annual income Rs 1,800,000 - here's how it would be taxed both ways under Finance Act 2025.
| Taxable income band | Rate | Income in band | Tax in band |
|---|---|---|---|
| Up to Rs 600,000 | 0% | Rs 600,000 | Rs 0 |
| Rs 600,001 – Rs 1,200,000 | 15% | Rs 600,000 | Rs 90,000 |
| Rs 1,200,001 – Rs 1,600,000 | 20% | Rs 400,000 | Rs 80,000 |
| Rs 1,600,001 – Rs 3,200,000 | 30% | Rs 200,000 | Rs 60,000 |
| Total slab tax | Rs 230,000 | ||
eBay payouts and export classification
Pakistani eBay sellers typically ship from Pakistan or through international fulfilment partners and receive funds via PayPal-to-Wise, Payoneer, or direct bank wire. Whichever rail you use, the receipts are export-of-goods income. Section 154 of the Ordinance applies - your bank deducts 1% (filer) / 2% (non-filer) WHT on the inward remittance, generally as final tax for individual exporters. PSEB registration does not cover physical-goods sales; that regime is reserved for digital services exporters.
Domestic dropshipping vs international shipping
Some Pakistani sellers operate as 'arbitrage' dropshippers - sourcing from AliExpress or Alibaba and listing on eBay at a markup. The tax treatment is identical because what matters is where the seller is resident, not the geographic flow of goods. Whether you ship from Lahore or from a US fulfilment centre, your eBay income is taxable in Pakistan as business income or under Section 154 final tax depending on the structure.
Cost of goods and platform fees
Deductible against eBay business income: cost of inventory, eBay listing fees, final value fees (typically 10–15%), PayPal/Payoneer/Wise transaction fees, international shipping (USPS, DHL, FedEx), packaging, Returns and refunds processed during the year, and a reasonable share of workspace and storage costs. Track the cost basis of each batch - FBR auditors push back hard on opaque 'cost of goods' figures without invoices.
Filing approach
Register for NTN, file the annual return by 30 September, and choose the right code: most individual eBay sellers fall under Section 154 final tax, but if you have significant deductible expenses it may be better to elect business-income treatment with slab rates and claim the deductions. The choice depends on margin - high-margin sellers usually prefer final tax, low-margin or dropshipping sellers prefer the slab regime with deductions.
Frequently asked questions
Is eBay income taxable in Pakistan?
Yes. eBay remittances are foreign-source business income - Section 154 export WHT (1% filer / 2% non-filer) applies on bank credit, generally as final tax for individuals.
Can eBay sellers use PSEB to get 0.25% tax?
No. PSEB covers IT and digital services exporters. Physical-goods sellers on eBay fall under the regular Section 154 export regime instead.
Are PayPal fees deductible on eBay income?
Yes if you file under business-income treatment with deductions. PayPal, Wise, Payoneer, and bank charges on eBay payouts are all legitimate business costs.
Do I need a sales tax registration to sell on eBay?
Pakistani sales tax doesn't apply to export sales - they are zero-rated. You only need registration if you also sell domestically in Pakistan above the turnover threshold.
Final tax or business income - which is better?
High-margin individual sellers usually prefer Section 154 final tax (simpler, no deductions). Low-margin dropshippers prefer slab rates with deductions because their net is small.