The Federal Board of Revenue (FBR) has officially announced an extension to the deadline for the electronic integration of taxpayers, vide F. No. 1(141) ST-L&P/2025/55105-R providing businesses with additional time to align their systems with the newly mandated invoicing regulations.
This extension is a part of the FBR’s ongoing efforts aimed at enhancing tax compliance and strengthening the framework for digital documentation of economic activities across Pakistan.
According to the revised timeline issued by the FBR, corporate taxpayers are now required to have fully implemented the electronic invoice system by June 1, 2025. This represents a one-month extension from the previously set deadline of May 1, 2025. Similarly, non-corporate registered persons have also been granted more time to complete the integration process, with a new final deadline of July 1, 2025.
The FBR had initially issued Statutory Regulatory Order (SRO) 709(I)/2025 on April 22, 2025, which made electronic invoicing mandatory for all registered taxpayers. This latest directive builds upon the foundation laid by the FBR’s earlier SRO 69(I)/2025, issued in January 2025, which established the groundwork for mandatory electronic integration through officially approved channels.
Under this new electronic system, businesses are required to establish a direct connection between their existing invoicing software or hardware and the FBR’s centralized computerized network. This integration can be achieved either through a licensed integrator authorized by the FBR or via the Pakistan Revenue Automation Private Limited (PRAL). The primary objective of this system is to ensure that every business transaction is recorded electronically in a standardized format and verified in real-time through the FBR’s secure digital infrastructure.
The electronic integration system incorporates several mandatory features that businesses must adhere to. These include the capability to issue sales tax invoices that conform to the FBR-approved format, the generation of secure digital signatures to ensure authenticity, and the real-time storage of transaction data. Each electronically generated invoice must also contain a unique FBR-assigned invoice number and a Quick Response (QR) code, which will enable efficient verification and traceability of the transaction.
Furthermore, every integrated system will be required to maintain a comprehensive activity log, meticulously recording any changes made to invoices, including cancellations or modifications. This detailed logging mechanism is designed to ensure transparency, maintain the integrity of the data, and effectively prevent any potential misuse of the system. The FBR has clearly stated that any business transaction or supply that is not processed through an electronically integrated outlet and does not feature a proper FBR-compliant electronic invoice will not be considered valid under the new regulations.
This latest extension provided by the FBR reflects its commitment to ensuring a smooth transition for businesses into the new digital invoicing regime. It is also part of a broader and ongoing campaign by the FBR to significantly reduce the prevalence of tax evasion, substantially boost overall revenue collection, and promote a more digitally documented and transparent economy within Pakistan. Businesses are strongly advised to utilize this additional time effectively and complete their electronic integration well in advance of the revised deadlines to avoid potential penalties and any disruptions to their operational processes.
The FBR views the successful implementation of electronic integration not merely as a mandatory compliance requirement but as a crucial step forward in the modernization of Pakistan’s tax system, paving the way for a more transparent and efficient fiscal environment for all stakeholders.
