Abdul Ghani

The Federal Board of Revenue (FBR) has proposed mandatory real-time electronic invoicing for notified businesses through a comprehensive QR-based digital monitoring system designed to curb tax evasion and undocumented sales, reports Wealth Pakistan.

Through SRO 288(I)/2026, the Board has published draft amendments to the Income Tax Rules, 2002, inserting a new Chapter VIIA titled “Online Integration of Businesses.”

The proposed framework requires the integrated enterprises to connect their electronic invoicing and point-of-sale (POS) systems directly with the FBR’s computerized system.

Under the draft rules, supplies will only be permitted through the FBR-integrated outlets and registered electronic invoicing machines. The businesses must generate invoices in real time, transmit data electronically to the FBR, and obtain a unique FBR invoice number before completing the transaction.

Each invoice will mandatorily carry a verifiable QR code, the FBR’s digital invoicing logo, the seller and buyer registration details, tax period, HS code, sales tax rate, tax amount, withholding and additional taxes where applicable, and other prescribed particulars.

The system must digitally sign invoices, encrypt data, and maintain logs of all adjustments or cancellations to prevent tampering. Records will be required to be preserved for six years.

In case of internet or power outages, the businesses may issue invoices in offline mode; however, such invoices must be uploaded to the FBR system within 24 hours of restoration. Failure to comply may attract penalties under Section 182 of the Income Tax Ordinance, in addition to other legal action.

In a further tightening of compliance oversight, the FBR may require integrated enterprises to install CCTV cameras at points of sale and retain transaction recordings for at least one month. These recordings must be produced before the commissioner concerned when demanded.

The draft amendments also introduce a formal licensing regime for software providers and system integrators. No entity will be allowed to integrate businesses with the FBR system without obtaining a five-year, non-transferable license from the Board.

The applicants for integrator licenses must demonstrate technical capacity, submit audited financial statements for the last three years, maintain a minimum paid-up capital of Rs10 million, and provide undertakings confirming no involvement in fiscal fraud or blacklisting.

The Pakistan Revenue Automation Limited (PRAL) has been authorized to act as a licensed integrator and may provide free integration services to taxpayers on demand. The Board may also require it to offer downloadable electronic invoicing software free of cost.

Officers of Inland Revenue will conduct periodic monitoring of integrated enterprises. Where businesses fail to generate QR-coded invoices or unique FBR invoice numbers, tax authorities may compute liabilities based on unaccounted sales and recover dues along with penalties.

Tax experts believe the move represents one of the most aggressive steps toward full digital documentation of retail and corporate transactions, strengthening audit trails and limiting invoice manipulation.

The draft amendments have been issued for public feedback, with stakeholders invited to submit objections or suggestions within seven days of publication in the official Gazette.

Credit: INP-WealthPk