National Tax Number (NTN)

The National Tax Number, or NTN, is an identification number issued by the Federal Board of Revenue (FBR). It identifies a taxpayer, whether an individual, an association of persons or a company, in FBR's records. For individuals, the CNIC number is generally used as the NTN.

Where you see it

• On invoices and letterheads of registered businesses
• On income tax returns and related documents
• On sales tax invoices, next to the STRN
• In supplier registration forms that companies ask their vendors to fill

Example

A Lahore electronics wholesaler supplies Rs 400,000 of stock to a company's offices. Before releasing payment, the company's accounts team asks for his NTN to put on its records and on the payment voucher. A wholesaler who has his NTN on his invoice and in his supplier profile gets paid without that back-and-forth.

The same applies on the buying side. A distributor buying Rs 1,200,000 of goods a month from a manufacturer will usually be asked for an NTN when the account is opened.

Why it matters

Companies, banks and larger suppliers increasingly expect the businesses they deal with to have an NTN. Having one, and showing it on your documents, makes those relationships simpler. The rules on who must register, and what follows from registration, are set by FBR and change from time to time, so check current requirements with FBR or a tax adviser.

How software handles it

Business software stores your NTN once and prints it on every invoice. It also stores customers' and suppliers' tax numbers on their party records. Taajir keeps parties with their GST numbers, invoices and an FBR-style GST report in one place.