Under the Finance Act, 2021, the owner of an online marketplace has been made a withholding agent who will be responsible for collecting withholding tax at the rate of two percent on sales made through digital platforms. As the online marketplaces have been brought into the tax net, a new definition has been including in the Sales Tax Act, 1990 through the Finance Act, 2021, which stated: “Online market place includes an electronic interface such as a market place, e-commerce platform, portal or similar means which facilitate sale of goods, including third party sale, in any of the following manner, namely: (a) by controlling the terms and conditions of the sale; (b) authorising the charge to the customers in respect of the payment for the supply; or (c) ordering or delivering the goods.” In the Eleventh Schedule of the Sales Tax Act, 1990, the owner of online market place shall collect two percent of gross value of supplies from persons other than active taxpayers. However, the law explained that the provision of this entry would be effective from the date as notified by the FBR.