The Federal Board of Revenue (FBR) has issued stringent new directives requiring all registered taxpayers to electronically integrate their invoicing systems. This move is a significant step in the country’s ongoing drive towards enhanced tax digitization, compliance, and transparency.
New SRO Outlines Mandatory Requirements
Through Statutory Regulatory Order (SRO) 709(I)/2025, issued on April 22, 2025, the FBR has formalized the mandatory requirements for the issuance of electronic invoices. The SRO stipulates that all registered persons must connect their existing invoicing hardware and software directly with the FBR’s centralized computerized system. This integration must be facilitated either through a licensed integrator approved by the FBR or via Pakistan Revenue Automation Private Limited (PRAL).
Compliance Deadlines Set
The new regulations establish clear deadlines for compliance. Corporate registered persons are required to begin issuing electronic invoices using integrated systems by May 1, 2025. Non-corporate registered persons have been granted a slightly later deadline, with compliance mandated by June 1, 2025.
This latest directive builds upon an earlier instruction under SRO 69(I)/2025, issued on January 29, 2025. The previous SRO had already made it mandatory for registered taxpayers to install and operate electronic invoicing systems as prescribed by the Board. The overarching objective is to ensure that every supply transaction is duly recorded and supported by a digitally generated FBR invoice, originating from integrated outlets, point-of-sale (POS) systems, or approved electronic invoice machines.
Required System Capabilities
The FBR has meticulously defined the essential capabilities and functions that these integrated systems must possess. Key requirements include the capacity to generate, process, analyze, and store invoice data, issue sales tax invoices in the specified format, and create secure digital signatures. Crucially, the systems must be capable of transmitting invoice data to the FBR in real-time and receiving a unique FBR invoice number. This unique number, along with a corresponding QR code, must be printed on every invoice receipt.
Furthermore, each system is required to maintain detailed logs of all modifications, cancellations, and system events to ensure full transparency and accountability. The FBR has unequivocally stated that no supply can be made unless it is processed through an electronically integrated outlet and accompanied by a mandatory FBR invoice.
Aim to Combat Tax Evasion and Boost Revenue
This significant regulatory measure by the FBR is a core component of its broader strategy aimed at curbing tax evasion, enhancing revenue collection, and improving documentation within Pakistan’s economy. Businesses are strongly urged to complete the integration process promptly to avoid potential penalties and operational disruptions.
