FBR Digital Invoicing Integration
Pakistan’s #1 FBR invoicing integration experts, delivering fast and reliable results.
In August 2025, the Federal Board of Revenue (FBR) in Pakistan made digital invoicing mandatory for all sales tax-registered entities. This includes both corporate and non-corporate registered persons. As businesses adjust, FBR digital invoicing integration has become the central process to ensure legal compliance, transparency, and smoother tax operations.
Whether you run a small shop, a large manufacturer, or an ERP software company, understanding how to integrate with FBR is essential. In this article, we discuss what FBR digital invoicing is, why it matters, who must comply, step-by-step integration, the benefits and challenges, along with comparisons to help you decide best practices.
What Is FBR Digital Invoicing & Who Needs It?
What It Is
- Digital Invoicing: replacing manual or paper invoices with electronic ones that are submitted real time or near real time to the FBR system (IRIS / PRAL).
- Integration: you must connect your invoicing / POS / ERP system through a licensed integrator so that FBR receives the data properly.
- Invoices include a unique invoice number, QR code, and all required fields as per FBR rules.
- There is also a Business Intelligence Dashboard provided by FBR for historical and real-time reporting.
Who Must Comply
- All sales tax-registered businesses in Pakistan. Corporate entities had earlier deadlines; non-corporate entities also now fall under the requirement.
- Examples: manufacturers, wholesalers, retailers, service providers. Especially large ones (turnover above certain thresholds).
- Licensed integrators have been appointed (e.g., PRAL, Haball (Pvt) Ltd., EY, WebDNAWorks) to help businesses with integration.
Timeline & Regulatory Framework
| Regulation / Notification | What it mandates | Key Deadlines |
|---|---|---|
| S.R.O. 709(I)/2025 | Requires corporate & non-corporate registered persons to integrate their systems for electronic invoicing. | Originally: May 1, 2025 for corporate; June 1, 2025 for non-corporate. Some extended deadlines. |
| S.R.O. 1413(I)/2025 | Makes issuance of digital invoices mandatory; sets testing & implementation phases. | From August 1, 2025 onward; with deadlines for registration, testing, and full implementation. |
Step-By-Step Guide to FBR Digital Invoicing Integration
Understand Your Business Requirements
- Is your business corporate or non-corporate?
- What is your turnover?
- What invoicing software / POS / ERP are you using or plan to use?
Select a Licensed Integrator
- Choose from FBR-approved integrators: PRAL (government-owned, free of cost), or one of the private ones (Haball, EY, WebDNAWorks).
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Make sure the integrator is valid and licensed.
Register with FBR’s IRIS / PRAL Portal
- Obtain necessary tokens or credentials (sandbox or live).
- Provide NTN (National Tax Number), company / business registration info.
Prepare / Modify Your Invoicing or POS / ERP System
- If using an existing system, ensure it can send invoice details automatically, generate QR code & unique invoice number, log correct fields per FBR spec.
- If using manual or basic word/excel system, you may need to upgrade or adopt cloud-based invoicing software.
Testing and Validation
- Complete functional tests via the licensed integrator.
- Ensure that invoices generated are accepted by FBR: correct format, QR code, logo, invoice number.
Go Live and Begin Issuing Digital Invoices
- After successful testing, begin issuing digital invoices for every sale (B2B / B2C as required).
- Use FBR’s Business Intelligence Dashboard to monitor performance, invoice volume, value, types.
Pros and Cons of FBR Digital Invoicing Integration
Pros (Benefits)
- Legal compliance: avoids penalties from FBR for non-compliance.
- Transparency: Unique invoice numbers + QR codes help prevent fake invoices and unverifiable claims.
- Efficiency: Less manual work, fewer errors, faster tax returns & input tax claims.
- Real-time insights: BI dashboards let you monitor invoice volumes, sales patterns, compliance metrics.
- Public trust & business credibility: Demonstrates you're a legitimate, law-abiding business.
Cons (Challenges)
- Technical & infrastructure cost: some businesses may need to upgrade systems/POS, get reliable internet, etc.
- Training & change management: staff must adapt to new workflows, digital invoicing, dealing with QR codes, etc.
- SME constraints: smaller businesses often lack technical resources or familiarity; abrupt deadlines can create hardship.
- Potential for errors in initial setup: mismatches in required fields, unapproved formats, wrong QR code, etc., which may lead to rejection or delays.
Comparison: Before vs After Integration
| Feature | Before Integration | After Integration (FBR Digital Invoicing) |
|---|---|---|
| Invoice issuance | Manual / paper / local digital formats, sometimes offline spreadsheets | Real-time electronic invoices, with unique invoice numbers, QR codes, FBR logo |
| Verification | Buyers often accept invoices at face value, manual checks | Buyers and FBR systems can verify invoices; can automatically claim input tax after validation |
| Compliance risk | High risk of non-compliance, penalties, audits due to fraud, fake invoices | Lower risk; automated compliance with FBR; less manual errors |
| Reporting & analytics | Slow, often manual effort, delays in filing returns | Instant/near real-time reporting, dashboards, streamlined return filings |
| Public / customer trust | Less transparency; possibility of disputes over fake or unverifiable invoices | Greater accountability; stronger trust and credibility in B2B/B2C transactions |
Examples & Use Cases
- Retail chain with multiple outlets: A shop-chain with 20 branches upgrades its POS software to send every invoice via a licensed integrator. Now each branch’s invoices are captured in FBR in realtime, making provincial sales tax filing easier and enabling aggregate analytics.
- Wholesaler / FMCG Distributor: Previously relied on paper invoices; after integration, input tax credit is automatically claimable; all invoices have correct invoice numbers and QR codes; disputes with buyers over verification drop.
- Small business with no ERP: A retailer was using Word or Excel for invoices. They switched to cloud-based digital invoicing (through a licensed integrator). Now they generate compliant invoices with minimal training and avoid penalties.
Best Practices & Tips for Smooth Integration
- Choose an integrator early; don’t wait until the deadline.
- Ensure your staff are trained on data fields, invoice formats, QR code scanning, etc.
- Backup systems & offline modes: in case of connectivity issues, use systems that queue invoices for automatic sync.
- Maintain correctness of buyer information: buyer NTN, registration status, etc., because mismatches could cause verification failures.
- Monitor updates in FBR rules, circulars, SROs, to stay compliant.
How Your Company (ManTech IT) Can Help
Since you’re one of the top providers of digital invoicing services in Pakistan, here’s how an agency like yours adds value:
- Offer full integration services: setup, customization, testing, live migration.
- Provide compliant templates (with QR codes, logos, required fields).
- Ensure secure, reliable, high-uptime infrastructure.
- Offer training and support for staff & accounting teams.
- Audit and review invoices periodically to catch compliance gaps.
Ready to integrate your business with FBR’s digital invoicing system? Let ManTech IT handle it—fast, compliant, and hassle-free.
Pakistan’s #1 FBR invoicing integration experts, delivering fast and reliable results.
Yes. As per S.R.O. 709(I)/2025 and S.R.O. 1413(I)/2025, all sales tax-registered persons (both corporate and non-corporate) must integrate their invoicing or POS/ERP systems with FBR’s digital invoicing platform through a licensed integrator
Licensed integrators include PRAL (government-owned), Haball (Pvt) Ltd, EY (Pvt) Ltd, WebDNAWorks. PRAL provides integration services free of cost for registered persons.
Non-compliance can lead to penalties, delayed input tax claims, audits, legal notices, and potential restrictions. FBR has begun penal action for businesses failing to meet requirements.
- A reliable internet connection.
- Ability for your system to send invoice data via API or through integrator’s middleware.
- Capability to generate QR codes & unique invoice IDs as prescribed.
- Matching buyer/seller registration info (NTN, business name, addresses) per FBR schema.
- Secure data handling (encryption, logs).
Yes. Many businesses adapt current systems. The key is to ensure that invoices include all mandatory fields, generate the QR code, unique invoice number, send invoice data real time, and connect via a licensed integrator. If your existing software lacks these, upgrading may be necessary.
- Assessment & gap-analysis of your current invoicing/POS/ERP setup.
- Connecting with licensed integrator & configuring API or middleware.
- Custom invoice templates as per FBR’s technical specs.
- Staff training and change management.
- Ongoing compliance monitoring, audits, and updates.