Importers Manufacturers and Wholesalers FBR Authorizes Electronic Invoice Integration with Its Digital Platform

Introduction
In a significant move toward digital transparency and tax automation, the Federal Board of Revenue (FBR) has authorized importers, manufacturers, wholesalers, and distributors to integrate their electronic invoicing (e-invoice) systems directly with the FBR’s real-time digital platform. This initiative is part of FBR’s broader Digitalization and Documentation Drive, aimed at minimizing tax evasion, increasing compliance, and bringing all business-to-business (B2B) transactions into the formal economy.

What Is Electronic Invoice Integration?

Electronic invoice integration refers to the ability of a business to automatically upload and report invoices to FBR in real time via an Application Programming Interface (API). This reduces manual reporting, streamlines tax filing, and enhances invoice authenticity and traceability.

Who Must Integrate?

Under the latest SROs and FBR notifications, the following categories are mandatorily required to integrate with FBR’s electronic invoicing system:

These businesses must generate tax invoices electronically, and ensure they are transmitted to FBR’s system in real time.

Integration Process

1. Register with FBR as a taxpayer (having an active Sales Tax Registration Number – STRN)

2. Apply for API integration access through the FBR Taxpayer Portal

3. Use FBR’s sandbox environment to test invoice formats and XML structure

4. Deploy production-level integration using certified ERP or accounting software

5. Automatically transmit all B2B and taxable supply invoices to FBR’s servers

6. Receive a QR code or Invoice Reference Number (IRN) for verification

Note: Businesses may use either in-house ERP systems or FBR-approved software vendors for integration.

Invoice Data Requirements

Each invoice submitted electronically must include:

• Buyer and seller NTN/STRN

• CNIC for unregistered buyers (where applicable)

• Invoice number and date

• Item-wise description, quantity, and rate

• Total amount, tax amount, and net payable

• Applicable sales tax and FED

• QR code (auto-generated by system)

Implications of Non-Compliance

Benefits of E-Invoice Integration

✅ Input Tax Credit Validity: Ensures claimable tax is properly matched and validated
✅ Audit Readiness: Real-time data minimizes discrepancies in tax audits
✅ Faster Refunds: Verified invoices are processed faster in refund cases
✅ Reduced Tax Evasion: Creates traceable, digital transaction records
✅ Business Efficiency: Minimizes manual documentation and invoice storage

FBR’s Broader Digitization Goals

This e-invoicing initiative aligns with other key projects under the FBR Digital Transformation Strategy:

• Point of Sale (POS) Integration for Tier-1 retailers

• Track and Trace System for high-risk sectors (tobacco, sugar, cement, fertilizer)

• Single Sales Tax Return Portal for nationwide ease of doing business

• Pakistan Single Window (PSW) for import/export simplification

Conclusion

The mandatory e-invoice integration is a significant step toward a transparent, compliant, and digitized economy in Pakistan. For importers, manufacturers, and wholesalers, timely integration with FBR’s invoicing platform is no longer optional—it is a legal requirement that will affect input tax claims, audit exposure, and business reputation.

Need Help with E-Invoice Integration?
At Sterling Consultancy, we assist businesses in:

• API registration and integration with FBR

• ERP and accounting system configuration

• Invoice compliance audits and training

• Data preparation and XML mapping

• Liaising with FBR’s technical teams