E-Invoicing in Pakistan: FBR Digital Invoicing Rules for Small Businesses
E-invoicing in Pakistan means issuing sales tax invoices through a system connected to FBR’s Digital Invoicing, so each invoice is reported to FBR in real time and gets a unique FBR invoice number and a QR code. It is mandatory for every person registered for sales tax under the Sales Tax Act 1990. Under SRO 1852(I)/2025, the last group of registered businesses had to start by 31 December 2025. Integration is free through PRAL, or you can use a licensed integrator.
This guide summarizes the rules from FBR’s own documents as of 28 September 2026. The rules have changed several times since 2025, so check FBR’s SRO list before you act on a date.
Who must issue e-invoices and by when
SRO 69(I)/2025 rewrote Chapter XIV of the Sales Tax Rules 2006: an integrated person must issue “a real-time verifiable electronic sales tax invoice for every taxable supply”. The start dates were extended several times. The current schedule is SRO 1852(I)/2025 of 24 September 2025, which covers all sales tax registered persons. Turnover means the turnover declared in sales tax returns for the last 12 months.
| Category | E-invoices from |
|---|---|
| Public companies, companies with turnover above Rs 1 billion, and all importers | 1 November 2025 |
| Companies with turnover of Rs 100 million to Rs 1 billion | 15 November 2025 |
| Companies with turnover up to Rs 100 million | 1 December 2025 |
| Individuals and AOPs with turnover above Rs 100 million | 1 November 2025 |
| All other registered persons | 31 December 2025 |
There is no small-business exemption: if you are registered for sales tax, you are in scope. SRO 2071(I)/2025 later added certain retailers, based on the withholding tax collected from them under sections 236G and 236H of the Income Tax Ordinance.
Large retailers (Tier-1) have a separate, older point-of-sale (POS) integration regime. POS systems that were already integrated count as integrated under the new rules.
What happens to each invoice
Under the Sales Tax Rules:
- Your system sends the invoice data to FBR and receives a unique FBR invoice number.
- The invoice must show the FBR invoice number, a QR code and the FBR Digital Invoicing logo.
- Exempt supplies must be e-invoiced too, not only taxable ones.
- If your system goes offline, you upload the invoices within 24 hours of the connection coming back.
- You keep records for six years.
- Since Sales Tax General Order 01 of 2026, you can cancel or edit an invoice within 72 hours; after that the Commissioner must approve the change. The same order allows you to work with more than one licensed integrator.
What a sales tax invoice must show
Section 23 of the Sales Tax Act 1990 requires a serially numbered tax invoice, issued at the time of supply, in Urdu or English, with:
- name, address and registration number of the supplier;
- name, address and registration number of the recipient;
- date of issue;
- description and quantity of goods;
- value exclusive of tax;
- amount of sales tax;
- value inclusive of tax.
Since the Finance Act 2026, the invoice must also bear “a verifiable and unique FBR invoice number”. The e-invoicing rules add more data, such as the HS code and unit of measure of each item. Here is how the printed invoice fits together:
Crescent Office Supplies (Pvt) Ltd
14-B Main Boulevard, Gulberg III, Lahore
Registration no. 1234567-8
SALES TAX INVOICE
| Item | Amount |
|---|---|
| Office chair, ergonomic20 pcs × Rs 18,500 | Rs 370,000 |
| Meeting table, 8-seat2 pcs × Rs 42,000 | Rs 84,000 |
- Subtotal
- Rs 454,000
- Sales tax 18%
- Rs 81,720
- Value incl. sales tax
- Rs 535,720
FBR Digital Invoicing logo and QR code are printed here after FBR issues the invoice number.
The standard rate in section 3 of the Act is 18%. Some goods are taxed differently, and a further tax applies to supplies to unregistered buyers, so check the rate for your goods.
How to start e-invoicing
- Check your registration and IRIS access. You need an active sales tax registration and a login for IRIS.
- Choose how to integrate. Use PRAL, which by rule must provide integration “free of cost” on request, or one of the FBR-licensed integrators.
- Open Digital Invoicing in IRIS. PRAL’s user manual describes two modes: API integration for your accounting or ERP software, and manual invoice generation, with limited functions, for low volumes.
- For API integration: whitelist your server IP, pass the sandbox test scenarios, then request a production token. Developers can use FBR’s API documentation.
- Update your invoice layout to print the FBR invoice number, QR code and logo.
- Set up a routine for offline periods (upload within 24 hours) and corrections (within 72 hours).
Integration itself costs nothing from FBR, but equipment and software costs are yours. Licensed integrators set their own prices.
Penalties and other consequences
Section 33 of the Sales Tax Act (serial 25A) covers a person who fails to integrate as required or fails to issue electronic invoices after integration:
- Rs 500,000 for the first default;
- Rs 1 million, Rs 2 million and Rs 3 million for the second, third and fourth defaults, each after 15 days;
- the business premises can be sealed.
Since the Finance Act 2026, the Commissioner can also suspend or blacklist a registration for not integrating. When that happens, buyers lose input tax on that supplier’s invoices, so registered customers have a strong reason to check that you are integrated. In September 2026, Business Recorder reported that FBR had started suspending registrations of taxpayers that failed to integrate.
Services, unregistered businesses and everyday invoices
- Services. Sales tax on most services is collected by the provinces, for example by the Punjab Revenue Authority and the Sindh Revenue Board, under their own rules. FBR’s Digital Invoicing covers supplies under the federal Act.
- Not registered for sales tax? Only registered persons may issue sales tax invoices. Issue an ordinary invoice with your details, the client’s, an invoice number, the date, the items and prices, and how to pay, without sales tax.
- Buyers checking an invoice. For retail POS invoices, FBR lets you verify the invoice number or QR code in the Tax Asaan app (“FBR POS”, then “Verify Invoice”) or by SMS to 9966 (FBR).
Where Invoxa fits
Invoxa is not an FBR-licensed integrator and does not send invoices to FBR. If you must issue FBR e-invoices, use PRAL or a licensed integrator for your sales tax invoices.
You can use Invoxa’s online invoice generator for invoices that do not go through FBR, such as invoices from businesses that are not registered for sales tax, and for quotes and purchase orders. It supports PKR and other currencies. For a general walkthrough, see what is an invoice and our general invoice templates.
Frequently asked questions
Is e-invoicing mandatory in Pakistan?
Yes, for businesses registered for sales tax with FBR. Under the Sales Tax Rules and SRO 1852(I)/2025, every sales tax registered person must issue invoices through a system integrated with FBR's Digital Invoicing. The last group had to start by 31 December 2025.
Is there a free way to integrate with FBR?
Yes. Under the Sales Tax Rules, PRAL provides integration free of cost on request, and FBR charges no fee. You still pay for your own equipment and software. Licensed integrators charge their own fees.
What is the FBR e-invoicing portal?
Digital Invoicing is a module inside IRIS, FBR's tax portal (iris.fbr.gov.pk). From there you can connect your software through the API or, for low volumes, enter invoices by hand with limited functions.
Is an e-invoice required for a service invoice?
FBR's digital invoicing applies to supplies under the federal Sales Tax Act 1990, which covers goods. Sales tax on most services is collected by the provinces, such as the Punjab Revenue Authority and the Sindh Revenue Board, under their own rules. Check with your provincial authority.
What is the penalty for not integrating with FBR?
Section 33 of the Sales Tax Act sets Rs 500,000 for the first default, then Rs 1 million, Rs 2 million and Rs 3 million for later defaults, each after 15 days, and the business premises can be sealed. FBR can also suspend or blacklist the registration.
How do I create an invoice in Pakistan if I am not registered for sales tax?
Issue an ordinary commercial invoice with your name and address, the client's details, an invoice number, the date, the items and prices, and payment details. Only registered persons may issue sales tax invoices, so do not show sales tax on it.
