FBR e-invoicing (digital invoicing)
Sales tax registered persons must issue every sales tax invoice through FBR's electronic invoicing system. Each invoice is sent to FBR in real time and comes back with an FBR invoice number and QR code.
Who it applies to
Sales tax registered persons. Corporate and non-corporate persons were brought in from mid-2025, and the remaining categories were phased in by December 2025. Tier-1 retailers also integrate their point-of-sale systems.
Phases and routes
| Item | Detail | Law |
|---|---|---|
| Phase 1 – public companies, all importers, turnover above Rs 1 billion | Live from 1 November 2025 | SRO 1852(I)/2025 |
| Phase 2 – companies with turnover of Rs 100 million to Rs 1 billion | Live from 15 November 2025 | SRO 1852(I)/2025 |
| Phase 3 – companies with turnover up to Rs 100 million | Live from 1 December 2025 | SRO 1852(I)/2025 |
| Individuals and AOPs with turnover above Rs 100 million | Live from 1 November 2025 | SRO 1852(I)/2025 |
| All other registered persons | Live from 31 December 2025 | SRO 1852(I)/2025 |
| Integration routes | PRAL (FBR's free option) or a licensed integrator | s.2(15A) |
How it works, step by step
The law behind each step is shown beside it.
- 1Check your statusRule 150Q
Confirm on IRIS that you are notified for e-invoicing, and confirm your phase.
- 2Choose an integrators.2(15A)
Use PRAL's free solution or a licensed integrator connected to your ERP or POS.
- 3Get your API credentialsSales Tax Rules
Register for digital invoicing on IRIS and get the security token for the sandbox and production environments.
- 4Map your datas.23
Set up HS codes, units of measure, rates (standard, reduced, Third Schedule, exempt, zero-rated) and buyer types (registered or unregistered).
- 5Pass sandbox testingFBR technical specification
Run FBR's test scenarios for your business type until all pass.
- 6Go lives.23
Each invoice is posted to FBR before it is issued; FBR returns an invoice number and QR code to print on it.
- 7Returns become automatics.26
Reported invoices populate your Annex-C and your buyers' Annex-A. Corrections go through debit or credit notes.
Worked example
Points to watch
- Invoices issued outside the system can be treated as invalid, and buyers may be denied input tax on them.
- Non-integration attracts penalties under section 33. FBR has also sealed premises of businesses that failed to integrate.
- Further tax of 4% applies on supplies to unregistered persons or persons not on the ATL (s.3(1A)), and must be shown on the e-invoice.
- Keep your product master (HS codes and UoM) consistent with your return annexures.
- An invoice can be cancelled or corrected only within 72 hours for a genuine mistake; after that the Commissioner's approval is needed (STGO 01 of 2026).
- Under the Finance Act 2026, non-integration alone is a ground for suspending sales tax registration (s.21).