FBR Launches Digital Invoicing System to Streamline Sales Tax

The Federal Board of Revenue (FBR) has launched a nationwide digital invoicing system for all sales tax registered taxpayers. The new system links business invoicing directly to tax administration and aims to reduce paperwork while improving accuracy in reporting.

FBR digital invoicing will prioritise corporate taxpayers for initial integration. Businesses can connect their billing software through licensed integrators. Pakistan Revenue Automation Limited (PRAL) will also provide a free integration option to help small and medium enterprises connect quickly. Once linked, every invoice will carry a visible QR code and a unique identification number issued by the tax system.

The digital invoices will be available in real time to both suppliers and buyers through an online portal. The FBR Business Intelligence dashboard will let taxpayers view invoice counts types and values. Taxpayers will be able to load approved invoices into their tax periods with a single click and reconcile records faster than before. FBR digital invoicing will also support automated validation to reduce mismatches and erroneous filings.

The system requires instant crediting of funds to beneficiary accounts when cash deposit machines or other approved payment channels are used. Biometric checks are required for deposits made by persons other than account holders. Banks and payment operators must retain records in line with applicable laws.

FBR has set standards for integration and will publish an approved list of certified machines and software on its portal. New machines not on the list must be tested and cleared by the authorised testing office before use. The regulator has also asked taxpayers to protect customer privacy and to keep portal credentials secure.

Officials say that the platform to strengthen tax transparency widen the tax base and reduce opportunities for invoice fraud. The system will also create real time data for policy makers and allow faster audit selection based on analytics.