Does the e-commerce tax apply to my own website or Instagram store, or only to marketplaces like Daraz?

The e-commerce tax is not a marketplace-only tax. The words of section 6A reach sellers on their own websites as well as sellers on marketplaces. Social media and messaging-app stores are where the text gets thin, because the Ordinance does not name them and leaves a key phrase undefined.

What does the law say?

The charge in section 6A. Section 6A(1) of the Income Tax Ordinance imposes tax on every person who receives payment for “digitally ordered goods or services” delivered from within Pakistan “using locally operated online platforms including online marketplace or websites”. Three things have to be present: the goods or services are digitally ordered, they are delivered from within Pakistan, and a locally operated online platform is used. The word “including” shows that marketplaces and websites are examples of such platforms, not the whole list.

The collection rule in section 153(2A). A payment intermediary deducts the tax when processing a digital payment on behalf of a seller of digitally ordered goods or services “through locally operated e-commerce platforms (including websites)”. A courier deducts it when collecting cash on delivery for digitally ordered goods and services “through e-commerce platforms (including websites)”.

Definitions in section 2. The Ordinance defines “e-commerce” as sale or purchase of goods and services over computer networks by methods designed for receiving or placing orders “either through websites, mobile applications or online marketplace having digital ordering features”, using a mobile phone, tablet or automated ordering system. It defines “online marketplace” in section 2 as an information technology platform run by an e-commerce entity that acts as a facilitator between a buyer and a seller, including online interfaces that, for a fee, let multiple buyers and multiple sellers deal directly.

The Sales Tax Act definition. Section 2(9C) of the Sales Tax Act defines “e-commerce” in almost the same words, but for goods only. Its separate definition of “online marketplace” in section 2(18A) also speaks of goods.

How does it work in practice?

Where you sell	Named in the text?	Position on the text
Online marketplace	Yes, “online marketplace” in section 6A and defined in section 2	Covered
Your own website with a checkout	Yes, “websites” in section 6A and section 153(2A)	Covered
Mobile app for your store	“Mobile applications” appear in the section 2 definition of e-commerce	Not named in section 6A, which gives marketplaces and websites as examples. The e-commerce definition points towards coverage but section 6A does not use that term
Social media page or messaging app	Not named	Unclear: depends on whether it is a “locally operated online platform” and whether the order is “digitally ordered”

Two phrases carry the weight: “digitally ordered” and “locally operated”. Neither is defined in the Ordinance. A reader could argue that a buyer placing an order by direct message has ordered digitally. A reader could also ask whether a global social network is “locally operated”. The text does not answer either point, and this page does not resolve them.

In practice, collection runs through section 153(2A). If a courier collects cash on delivery, or a payment intermediary processes the payment, for goods or services it treats as digitally ordered, it will deduct. The law does not make the courier or gateway decide the platform question in any stated way.

Worked example (illustrative figures)

Three sellers in Karachi each make Rs. 100,000 of sales in a month of tax year 2027, all paid by cash on delivery through a courier.

• Sana sells on an online marketplace. The marketplace fits the section 2 definition, so section 6A applies. Courier deduction at 2%: Rs. 100,000 x 2% = Rs. 2,000.
• Imran sells through his own website. Section 6A names websites. Courier deduction: Rs. 2,000.
• Hina takes orders through her Instagram page and books parcels with a courier on cash on delivery. If the courier treats her orders as digitally ordered goods, it deducts Rs. 2,000 under section 153(2A). Whether section 6A properly reaches her sales depends on the two undefined phrases above.

The arithmetic is the same in each case. The difference is how clearly the law reaches the seller.

What if …?

What if my buyer pays me directly by cash at a pickup point? Section 153(2A) only names payment intermediaries processing digital payments and couriers collecting cash on delivery. A direct cash payment has no collecting agent under that section. Section 6A still charges the person receiving payment, if the sale falls within it.

What if I sell to buyers abroad? The proviso to section 6A(1) excludes export proceeds that are subject to withholding under the export provisions of the Ordinance.

What if I also have a physical shop? Section 6A looks at the sale, not the seller. Only sales made through a covered online platform fall within it.

Common mistakes

• Assuming only marketplace sellers are taxed. Section 6A names websites alongside marketplaces.
• Assuming social media sales are clearly outside. The Ordinance does not exclude them. It simply does not name them.
• Reading the Sales Tax Act definition as covering services. Section 2(9C) of the Sales Tax Act speaks of goods only. The income tax definition covers goods and services.

What to check in the official text

Read section 6A(1) with the definitions of “e-commerce”, “digital means” and “online marketplace” in section 2 of the Income Tax Ordinance, and section 153(2A). For sales tax, read section 2(9C) and (18A) of the Sales Tax Act. Any Board clarification on what counts as a locally operated platform is not held in this corpus.