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ISLAMABAD: FBR Poised to Grant Limited Extension for Sales Tax Digital Invoicing Integration

[ez-toc]ISLAMABAD – The Federal Board of Revenue (FBR) is expected to grant a short extension in the deadline for registered persons to integrate their invoicing systems with the tax authority’s sales tax platform, it is learnt. Business circles have repeatedly sought a three-month extension to allow a smoother transition to the digital invoicing system. However, officials say the FBR is more likely to allow an additional 15 to 30 days rather than the full three months being demanded.

Business Community Requests Relief

In a recent communication, Karachi Chamber of Commerce & Industry (KCCI) President Muhammad Jawed Bilwani urged Member Inland Revenue Operations to extend the integration deadline and to establish a facilitation desk at trade bodies to assist taxpayers with free-of-cost integration through Pakistan Revenue Automation Limited (PRAL). Bilwani noted that despite the business community’s willingness to comply with the new system, a significant number of taxpayers have been unable to complete registration through the four authorised integrators because of the sheer volume of applications within a very short timeframe.

Background of the Deadline

Under SRO 1413(I)/2025 dated August 1, 2025, deadlines for registration have already passed for the first three categories — all public companies, all other companies with turnover exceeding Rs1 billion as declared in their sales tax returns for the last twelve months, and all importers. Their deadline was August 10, 2025. From September 1, 2025, FBR field formations are legally allowed to start issuing the first penalty notice of Rs500,000 under Section 25A of the Sales Tax Act 1990 to all those registered persons who have not yet integrated their invoicing system with FBR or begun issuing Electronic Invoices.

Need for Flexible Implementation

Bilwani stressed that while large public companies and firms with turnover above one billion rupees are generally ready to comply with SRO 1413(I)/2025, many small, medium and seasonal importers cannot immediately make integration arrangements and start issuing Electronic Invoices. He said FBR should take this aspect into consideration before initiating penal action.

Proposed Facilitation Measures

To ease the transition, KCCI has proposed the establishment of an online Helpdesk at the chamber with a dedicated focal person from FBR accessible to members via Zoom during office hours. This would provide real-time guidance on technical issues and support taxpayers in completing the integration process without disruption. Bilwani maintained that a short extension would provide much-needed relief, encourage wider compliance and ensure smoother implementation of the digital invoicing system.

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