Islamabad: The Federal Board of Revenue (FBR) has declared that businesses not integrating their billing systems with its electronic platform will face strict financial penalties from September 1, 2025.
In line with Section 25A of the Sales Tax Act, 1990, registered taxpayers — including importers, listed companies, and firms recording an annual turnover above PKR 1 billion during the past twelve tax periods — are bound to issue digital invoices carrying an FBR verification number, QR code, and logo.
The enforcement mechanism prescribes fines of PKR 500,000 for the first violation, escalating to PKR 1 million, PKR 2 million, and eventually PKR 3 million for repeated non-compliance.
Tax consultants have cautioned that any invoice generated outside the official system after the September deadline will be considered invalid. Purchasers of such invoices will also lose the right to claim input adjustments, directly impacting their compliance status and tax credits.
While major corporations and publicly listed enterprises are believed to be in a stronger position to comply with the new rules under SRO 1413(I)/2025, small and seasonal importers may struggle to meet the integration deadline.
Advisors have urged the revenue authority to provide additional relief, particularly in view of the widespread flooding that has disrupted commercial activity nationwide. However, they also underscored the urgency for taxpayers to adopt e-invoicing, which is expected to eliminate fake and “flying” invoices.
The FBR has maintained that the transition is aimed at tightening documentation, improving enforcement, and curbing revenue losses within the sales tax regime.