Quick answer
What is FBR digital invoicing?
FBR digital invoicing is Pakistan's mandatory e-invoicing system for sales-tax-registered businesses. Every invoice is issued through software integrated with FBR's computerised system and reported in real time; FBR returns a unique FBR invoice number and a QR code that must be printed on the invoice. It is governed by Chapter XIV of the Sales Tax Rules, 2006 (substituted by SRO 69(I)/2025) and applies to all corporate and non-corporate registered persons under SRO 709(I)/2025 and later notifications.
Key takeaways
- E-invoicing applies to all sales-tax-registered persons — FBR's phased rollout was scheduled to finish on 31 December 2025.
- Invoices are sent to FBR in real time through PRAL's Digital Invoicing (DI) API; each comes back with an FBR invoice number and QR code.
- Integration must go through an FBR-licensed integrator. PRAL is one, and provides integration free of cost.
- Failing to integrate triggers escalating Section 33 penalties (Rs 500,000 → Rs 3 million) and, since 1 July 2026, possible suspension of your sales-tax registration.
- Most businesses can be live in days using ready-made software such as DInvoice.
What is FBR digital invoicing?
FBR digital invoicing — also called e-invoicing or electronic invoicing — replaces the old model of issuing a sales tax invoice first and declaring it to FBR later. Under the new model, your invoicing software sends each invoice to FBR's system at the moment it is issued. FBR validates the data and responds with a unique FBR invoice number (often called the IRN) and a QR code. Only then is the invoice complete.
FBR's own FAQs define an electronic invoice as "a tax invoice created digitally using electronic tools on a specified format". The practical effect is that FBR sees your sales as they happen, which is why the regime is sometimes described as real-time invoice reporting.
The parties involved
| Party | Role |
|---|---|
| FBR (Federal Board of Revenue) | Regulator. Issues the rules (SROs), licenses integrators and receives every invoice. |
| IRIS | FBR's online tax portal, where businesses request digital-invoicing integration and obtain API tokens. |
| PRAL | Pakistan Revenue Automation (Pvt.) Ltd — FBR's IT company. Operates the Digital Invoicing API and acts as a free licensed integrator. |
| Licensed integrators | Companies licensed by FBR to integrate businesses' invoicing systems. See the difference. |
| Your invoicing software | Your ERP, POS, accounting system or a dedicated tool like DInvoice that creates the invoice and talks to the API. |
Who must comply?
Under SRO 709(I)/2025 (22 April 2025), FBR notified all corporate and non-corporate sales-tax-registered persons to integrate with its system. Timelines were revised several times and ultimately phased by business size under SRO 1852(I)/2025, with the final category scheduled to go live by 31 December 2025. In 2026, digital invoicing is therefore expected of every registered person.
FBR's FAQs add an important detail: a digital invoice is required for all sales reported in Annexure-C of the sales tax return — not just some of them.
- Manufacturers and importers
- Wholesalers, distributors and dealers
- Any other person registered for sales tax under the Sales Tax Act, 1990
The legal framework: SROs and rules
Digital invoicing rests on a handful of statutory notifications (SROs) and provisions of the Sales Tax Act, 1990. The key ones:
| Instrument | Date | What it does |
|---|---|---|
| SRO 69(I)/2025 | 29 Jan 2025 | Substitutes Chapter XIV of the Sales Tax Rules, 2006 — licensing of integrators, issuance of electronic sales tax invoices and integration of registered persons. |
| SRO 709(I)/2025 | 22 Apr 2025 | Issued under Rule 150Q(2); notifies all corporate and non-corporate registered persons to integrate. |
| SRO 1413(I)/2025 | Aug 2025 | Revised, phased integration schedule (later superseded). |
| SRO 1852(I)/2025 | 24 Sep 2025 | Final phased schedule for registration, sandbox testing and go-live, ending 31 Dec 2025. |
| Section 33, Sales Tax Act | — | Escalating penalties for failing to integrate (Serial 25A). |
| Finance Act 2026 | 1 Jul 2026 | Allows FBR to suspend or blacklist the registration of non-integrated businesses; introduces electronic debit/credit note adjustment. |
For exact dates by category, see our deadlines and SRO timeline.
How FBR digital invoicing works, step by step
- 1
Create the invoice
Your software captures seller and buyer details (NTN/CNIC, province, registration type), line items with HS codes, units of measure, values and the applicable sale type and tax rate.
- 2
Validate
The invoice is checked against FBR's rules and reference data — for example, that the HS code, unit of measure and rate combination is valid.
- 3
Submit in real time
The software posts the invoice to PRAL's Digital Invoicing API using your business's security token.
- 4
Receive the FBR invoice number
FBR's system responds with a unique FBR invoice number. The QR code is generated from it.
- 5
Print or share
The final invoice carries the FBR invoice number, the QR code and the FBR Digital Invoicing logo. Buyers can verify it with FBR's Tax Asaan app.
- 6
Reconcile in your return
Because FBR already holds the invoice data, your Annexure-C sales should match what was reported in real time.
Developers can find the technical details — endpoints, payload fields and sandbox testing — in our FBR API integration guide.
What an FBR digital invoice must contain
An FBR digital invoice contains the usual sales tax invoice particulars plus structured fields that FBR's system validates. Based on PRAL's DI API specification, these include:
- Seller: NTN/CNIC, business name, province and address
- Buyer: NTN/CNIC, name, province, address and registration type (registered or unregistered)
- Invoice: type (sale invoice or debit note), date and your internal reference
- Each line item: HS code, product description, unit of measure, quantity, value excluding sales tax, rate, sales tax, sale type and — where relevant — SRO schedule and item serial numbers, further tax, extra tax and FED
Once FBR accepts it, three elements must appear on the printed invoice: the FBR invoice number, the QR code and the FBR Digital Invoicing logo. See the QR code and logo requirements.
Your options for integrating with FBR
FBR requires integration through a licensed integrator, but you still choose the software that issues your invoices. There are three common routes:
| Route | Best for | Trade-offs |
|---|---|---|
| Build your own integration to PRAL's DI API | Companies with an in-house development team and a custom ERP | Full control, but you own development, sandbox testing, reference-data updates and ongoing maintenance. |
| Use ready-made digital invoicing software (e.g. DInvoice) | Most SMEs, distributors, wholesalers and manufacturers | Fastest to go live; the vendor maintains FBR changes. Choose a vendor carefully — use this checklist. |
| Connect your existing ERP/POS through a vendor's API | Businesses that want to keep their current system | Keeps your workflow; needs field mapping. How API integration works. |
Penalties and consequences of non-compliance
Section 33 of the Sales Tax Act, 1990 (Serial 25A) sets an escalating penalty for a person required to integrate who fails to do so:
| Default | Penalty |
|---|---|
| First default | Rs 500,000 |
| Second default (after 15 days) | Rs 1,000,000 |
| Third default (after a further 15 days) | Rs 2,000,000 |
| Fourth default (after a further 15 days) | Rs 3,000,000 |
| Still not integrated 15 days later | Business premises may be sealed |
- Registration suspension: since 1 July 2026, the Finance Act 2026 allows FBR to suspend or blacklist the sales-tax registration of businesses that are not integrated.
- Lost input tax for your buyers: invoices issued outside the digital invoicing system may not qualify for input tax adjustment, which quickly becomes a commercial problem with registered customers.
- Waiver: the law provides that if a person integrates before the penalty for the second default is imposed, the first-default penalty is waived.
How to get compliant: a practical checklist
- Confirm your sales tax registration (STRN) and IRIS login are active.
- Decide how you'll invoice: ready-made software, your ERP through an API, or an in-house build.
- Clean your master data — every product needs a valid HS code and unit of measure; every registered buyer needs a correct NTN/CNIC and province.
- Request digital-invoicing integration in IRIS and obtain your sandbox token. Step-by-step registration guide.
- Pass the sandbox test scenarios that apply to your business activity and sector.
- Obtain your production token and go live.
- Update invoice templates to print the FBR invoice number, QR code and Digital Invoicing logo.
- Train your team on the 72-hour window for correcting invoices issued by mistake.
How DInvoice helps
DInvoice (Digital Invoice Integrator) is cloud software that handles the whole flow above. You create invoices in the web app — or send them from your ERP through our REST API — and DInvoice validates them, submits them to FBR through PRAL's Digital Invoicing API, and returns each one with its FBR invoice number and QR code. Integration and onboarding are free with every plan, and every plan starts with a 15-day free trial.
Frequently asked questions
Is FBR digital invoicing mandatory?
Yes. FBR's FAQs state that, under SRO 709 dated 22 April 2025, electronic invoicing is mandatory for all corporate and non-corporate registered persons. The phased rollout under SRO 1852(I)/2025 was scheduled to cover the last category by 31 December 2025.
Is e-invoicing the same as FBR digital invoicing?
Yes. "E-invoicing", "electronic invoicing" and "digital invoicing" all refer to the same FBR regime in which invoices are reported to FBR's system in real time.
Does FBR charge a fee for digital invoicing?
No. According to FBR, registered persons pay no fee to FBR. PRAL provides integration free of cost; private licensed integrators may charge a fee within a limit set by FBR.
What is the FBR invoice number (IRN)?
It is the unique number FBR's system assigns to each invoice when it is accepted. It must be printed on the invoice together with the QR code, and it lets buyers and FBR verify that the invoice was reported.
Can I keep using my current ERP or POS?
Usually, yes — it needs to be integrated with FBR through a licensed integrator, either by building a connection to PRAL's DI API or by connecting it to digital invoicing software such as DInvoice through its API.
What if FBR's system is down when I issue an invoice?
Good software queues the invoice and retries automatically, so nothing is lost. Check FBR's current rules for the time limit within which invoices issued during an outage must be reported.
Sources
- FBR — Digital Invoicing FAQs
- FBR — SRO 69(I)/2025: Sales Tax Rules, 2006, Chapter XIV (PDF)
- PRAL — Technical Documentation for DI API v1.12 (PDF)
- FBR — List of Licensed Digital Invoicing Integrators
- FBR — Sales Tax Act, 1990 (updated to 2025-26) (PDF)
- PKRevenue — Penalty up to Rs 3 million for failure to integrate business
- KPMG — Pakistan: Tax measures in Finance Act 2026
Published by DInvoice (Digital Invoice Integrator), FBR digital invoicing software for Pakistan. This page is general information, not legal or tax advice; rules and penalty amounts change, so confirm current requirements with FBR or your tax advisor. Last reviewed 26 September 2026.