The Federal Board of Revenue (FBR) has mandated the implementation of electronic invoicing for registered businesses in Pakistan. This initiative issued via S.R.O.609 (1)/2025 aims to enhance tax compliance and streamline the invoicing process.
Key Requirements for Businesses
Under the new regulations, businesses are required to:
- Integrate Electronic Invoicing Systems: Businesses must install and integrate electronic invoicing hardware/software with FBR’s computerized system.
- Register Sales Outlets and Points of Sale (POS): All sales outlets and POS must be registered through FBR’s online system.
- Issue Sales Tax Invoices: Sales tax invoices must be issued in a prescribed format, including a digital signature and a unique FBR invoice number.
- Secure Transmission of Invoice Data: Invoice data must be securely transmitted to FBR’s system and receive a unique FBR invoice number.
- Generate QR Codes: Invoices must include a QR code linked to the unique FBR invoice number.
- Maintain Transaction Records: Businesses must maintain records of all transactions, including modifications, adjustments, or cancellations.
Additional Compliance Measures
Businesses may also be required to:
- Install Payment Systems: Install debit/credit card payment systems at all sales points.
- Maintain CCTV Recordings: Maintain CCTV recordings of sales transactions for at least one month and provide them to the Commissioner upon request.
- Register Online Platforms: Register their websites, mobile applications, and online marketplaces with FBR.
Implications for Businesses
The implementation of electronic invoicing is expected to:
- Enhance Tax Compliance: Improve accuracy in tax reporting and reduce the risk of tax evasion.
- Streamline Invoicing Processes: Simplify the invoicing process and reduce administrative burdens.
- Increase Operational Costs: Require businesses to invest in new systems and technologies, potentially increasing operational costs.
The FBR has emphasized the importance of compliance with these new regulations and has indicated that non-compliance may result in penalties or other enforcement actions.
