On January 29, 2025, the Federal Board of Revenue (FBR) of Pakistan issued Notification S.R.O. 69 (I) 2025, which will significantly change the country’s sales tax invoicing system.
The amendments to the Sales Tax Rules, 2006, require all registered persons to integrate their sales tax invoicing systems with the FBR’s computerized system from February 3, 2025.
Under the new provisions, businesses must use approved hardware and software systems that generate digital invoices, including QR codes, and transmit transaction data to the FBR in real time. Registered persons are also required to ensure proper data storage and maintain logs for auditing purposes. Failure to comply with these requirements will result in penalties.
Scope of e-invoicing
The provisions apply to all registered persons for electronic integration of hardware/software for generating and transmitting electronic invoices. E-invoicing is also required for exempt goods, ensuring all transactions are electronically recorded for transparency.
Registered persons who are already integrated with the FBR’s system are exempt from re-registration.
Obligations of integrated persons
Registered persons must integrate their sales tax invoicing systems with the FBR’s computerized system.
Sales invoicing through integrated outlets or POS (Point of Sale) must generate invoices, create digital signatures, transmit data to the FBR’s system, and issue a unique invoice number.
Integration requirements also include generating QR codes, storing data securely, and maintaining logs for auditing purposes.
Licensing of integrators
No person can integrate sales tax systems unless licensed by the FBR.
PRAL (Pakistan Revenue Automation (Pvt) Limited) is designated as a licensed integrator responsible for providing integration services.
Timelines and extensions
Registered persons must integrate their systems from February 3, 2025.
The Commissioner Inland Revenue can extend the deadline by up to 60 days (in 15-day intervals).
Data storage
All software and hardware systems must be capable of securely transmitting and storing data for at least 6 years for audit purposes.
Additional provisions
The provisions apply to both online and offline sales. In case of internet or system failure, offline invoices will be allowed but must be uploaded to the system within 24 hours of restoration.
The system may require integrating debit/credit card payment facilities and maintaining CCTV records at points of sale.
