ISLAMABAD: The Federal Board of Revenue (FBR) has granted a seven-month extension to traders and businesses for electronic invoice integration, acknowledging the original deadlines as unrealistic due to system constraints and compliance challenges.
The extension, announced via a fresh Statutory Regulatory Order (SRO) issued Friday, divides businesses into seven tiers with staggered deadlines, replacing the previous one-size-fits-all approach.
The new final deadline for real-time electronic sales invoice transmission is now December 1, 2025, giving businesses additional time to integrate their systems with FBR’s digital network.
Entities with over Rs100 million in turnover must complete registration and testing by October 1, while public sector firms, importers, and companies with over Rs1 billion turnover must comply by September 1. Companies under Rs1 billion have until November 1.
Integration will be carried out by four licensed providers:
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Haball Limited
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Webdnworks Private Ltd
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EY Ford Rhodes
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PRAL (Pakistan Revenue Automation Ltd)
Only licensed integrators can install and configure the real-time invoice system. The government has capped integration charges at Rs10 per invoice or Rs1 million, whichever is less.
The delay fulfills one of the four key demands of traders, who earlier resisted reforms due to fears of overregulation. Their other demands include:
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Revoking arrest powers on suspicion of tax fraud
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Ending additions based on over Rs200,000 cash expenses
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Pulling back inspectors from business premises
Tax laws remain clear: any taxpayer failing to integrate by the deadline will be penalized.
Despite 390,000 registered sales tax filers, data shows only about 60,000 actually pay taxes, according to former FBR official Dr. Hamid Ateeq Sarwar. The 4% extra tax on unregistered transactions has become a loophole for remaining outside the system while passing the burden to consumers—a strategy the IMF has discouraged, tying its removal to a broader tax base.
To reduce integration costs, the government is evaluating two solutions: a multi-billion-rupee subsidy for traders or providing a free PRAL-built system.
Ultimately, electronic invoicing is mandatory for all businesses, and non-compliance will invite enforcement actions. Traders are now expected to adopt the system within the extended deadlines, as digital integration becomes central to Pakistan’s tax reform roadmap.