E-invoicing in Pakistan

All registered persons falling within notified categories — including manufacturers, importers, wholesalers, distributors, and large retailers — are required to issue electronic sales tax invoices through systems integrated with the Federal Board of Revenue (FBR). This applies to all taxable transactions, regardless of whether the customer is a government entity or private business.

For business-to-business (B2B) transactions, e-invoicing is now mandatory for specified registered taxpayers. As of 2025, this includes both corporate and non-corporate registered persons involved in manufacturing, import, wholesale, distribution, and other notified sectors.

E-invoices must be:

• Issued using approved FBR-compliant invoicing software, POS systems, or integrated ERP solutions
• Digitally signed and contain a unique FBR invoice number and QR code
• Transmitted in real time to the FBR’s e-invoicing system for validation before being shared with the customer

Only e-invoices issued through this system are considered valid for input tax deduction under Pakistan’s sales tax regime.

E-invoicing is also being applied to business-to-consumer (B2C) transactions, particularly in the retail and fast-moving consumer goods (FMCG) sectors. Tier-1 retailers and other designated businesses are required to issue real-time electronic receipts through integrated POS systems that communicate directly with the FBR.

These e-receipts must:

• Be generated using FBR-approved POS systems
• Be transmitted live to the FBR for real-time reporting
• Include a QR code, allowing verification by consumers and the tax authority

Pakistan’s e-invoicing system operates on a real-time reporting model. Invoices must be transmitted to the FBR’s e-invoicing portal and validated at the point of issuance. This ensures that each transaction is logged, timestamped, and assigned a unique identifier before being finalised or shared with the customer.

Failure to comply with Pakistan’s e-invoicing rules may result in the following consequences: 

• Ineligibility to claim input tax on purchases if valid e-invoices are not issued
• Penalties and fines under the Sales Tax Act and relevant FBR rules
• Suspension of sales tax registration for serious or repeated noncompliance
• Audit exposure or legal consequences for issuing unregistered or unverified invoices