For years, an invoice was a piece of paper you printed, filed, and reported later. That changed in 2025. Under a series of FBR notifications, every sales tax registered person is now required to issue electronic invoices that transmit to the FBR's system in real time, through an approved integrator. It is no longer optional, and it is no longer a future project — the phased deadlines ran through the second half of 2025.
The facts, in short
- Who: all sales tax registered persons — companies, AOPs and individuals.
- How: through an FBR-licensed integrator. PRAL offers integration free of cost on demand.
- What: a real-time, verifiable electronic invoice for every taxable supply, carrying a unique FBR invoice number and a QR code.
- Corrections: only within 72 hours of generation; after that, only with the Commissioner's approval.
- Records: retained electronically for six years.
What "digital invoicing" actually means
Strip away the acronyms and the idea is simple. Instead of generating an invoice inside your own accounting software and reporting its totals in a monthly sales tax return, your system reports each individual invoice to FBR as it is created. FBR's system returns a unique invoice number and the invoice is issued to the customer carrying a QR code. The sales tax return then fills itself in from those invoices, rather than from numbers you type in by hand.
The effect is that the tax authority sees sales as they happen, not weeks later in aggregate. That is why this change matters more than most compliance updates: it is not just a new form, it is a new way of processing every single sale.
Who it applies to, and by when
The obligation applies to all sales tax registered persons — but it was rolled out in waves, staged by the size and type of the business. The dates below reflect the compliance timeline FBR set out during 2025:
| Registered person | Latest date to be issuing e-invoices |
|---|---|
| Public companies and importers | 10 August 2025 |
| Companies with turnover above Rs 1 billion | 1 September 2025 |
| Individuals & AOPs with turnover above Rs 100 million | 1 October 2025 |
| Companies with turnover between Rs 100m and Rs 1bn | 1 October 2025 |
| Companies with turnover up to Rs 100 million | 30 October 2025 |
| All other registered persons | 1 December 2025 |
In other words: if you are registered for sales tax, your window has passed. The question is no longer whether you integrate, but how quickly you can close the gap.
How integration actually works
Integration is not something you do by logging into a portal. It means connecting the software that generates your invoices — whether that is a point-of-sale (POS) system, an ERP, or a standalone invoicing tool — to FBR's system so that each invoice is transmitted and acknowledged.
Three things are worth knowing:
- It must go through a licensed integrator. Only an entity licensed by FBR under the Sales Tax Rules can configure a registered person's software for real-time transmission.
- PRAL is a licensed integrator, and its service is free. FBR has designated PRAL to act as a licensed integrator and to provide integration services free of cost on demand, with downloadable software available from FBR's website.
- You can engage more than one integrator. Following a clarification in 2026, a registered person may use one or more licensed integrators where needed — a helpful change for businesses with several systems.
What a compliant invoice must contain
The system is specific about what a valid electronic invoice carries. At a minimum it includes a unique FBR invoice number, a unique and verifiable QR code, the registration number of the invoicing software, the FBR digital invoicing logo, and the seller's details. Registers that are notified are also expected to display "Integrated with FBR" signage at outlets, with the software registration number provided for verification.
Buyers benefit too: FBR provides a facility on its website for a buyer to verify whether an invoice issued to them was communicated to FBR's system. That is a quiet but powerful lever — it means your customers can confirm your compliance, so there is nowhere to hide an un-integrated invoice.
The 72-hour rule — and why it matters
Mistakes happen, and FBR's rules acknowledge that — but only briefly. A valid electronic sales tax invoice can be cancelled, deleted or edited only within 72 hours of its generation, and only through FBR's system. After that window closes, any correction requires the prior approval of the concerned Commissioner Inland Revenue.
What happens if you do not comply
The consequences are not theoretical. Registered persons who fail to meet FBR's integration timelines are liable to penalties under Section 33 of the Sales Tax Act, 1990. Separately, FBR has established an Inland Revenue enforcement network that patrols premises to verify that invoices are being reported in real time — and where sales are found that were not invoiced through an integrated system, the tax on those sales can be computed and recovered.
In short: an un-integrated sale is not a sale waiting to be regularised. It is exposure.
What this means for your software
This is where digital invoicing stops being purely a tax matter and becomes a systems project. Your invoicing software — the thing that actually creates the invoice — has to be integration-ready. That raises a few practical questions:
- Does your current POS, ERP or invoicing tool support integration with FBR through a licensed integrator?
- If it does, who configures and maintains that connection?
- If it does not — which is common with older or fully custom systems — what is the fastest path to a compliant setup?
Often the answer is configuration. Sometimes it is a small piece of integration work. Occasionally it is a case for moving to a system built with FBR compliance in mind from the start. Our software team builds and integrates invoicing and ERP systems for Pakistani businesses, and our tax team handles the filing side — so integration, invoicing and the return all line up.
A short checklist
- Confirm you are on the sales tax registered list and establish your compliance date.
- Identify the software that generates your invoices — POS, ERP or otherwise.
- Decide on an integrator (PRAL's free service is a valid starting point).
- Test integration and confirm invoices carry the FBR number and QR code.
- Build a 72-hour correction routine into your team's process.
- Confirm six-year electronic record retention and that your return pulls from invoices.
Get compliant — and stay that way.
We connect your invoicing to FBR through a licensed integrator, test it end to end, and keep the filing side in order. One team for the tax and the software.
Frequently asked questions
Is electronic invoicing really mandatory?
Yes. FBR notifications issued in 2025 make electronic invoicing mandatory for sales tax registered persons, with integration carried out through an FBR-licensed integrator.
Do I have to pay for integration?
You may engage a private licensed integrator, which charges a fee, but PRAL acts as a licensed integrator and provides integration free of cost on demand.
Can I cancel or edit an invoice after issuing it?
Only within 72 hours of generation, through FBR's system. After that, any cancellation, deletion or edit needs the prior approval of the Commissioner Inland Revenue.
How long do I keep the invoices?
Six years, retained on electronic media.
What if I do not integrate at all?
You face penalties under Section 33 of the Sales Tax Act, and FBR can recover tax on sales it finds were not invoiced through an integrated system.