In a major development aimed at digitizing the retail economy and enhancing transparency in business transactions, the Federal Board of Revenue (FBR) has formally announced that only four licensed companies are legally authorized to register retailers for integration with its Digital Invoicing System. This move is part of the FBR’s broader efforts to modernize Pakistan’s taxation framework and ensure compliance through automated systems.
The directive comes through a new Sales Tax Circular No. 1 of 2025, issued by the FBR on Friday, outlining the procedure for businesses to comply with the digital invoicing mandate under SRO 69(1)/2025, dated January 29, 2025. This regulation requires specific categories of retailers and businesses to issue digital invoices, which are automatically reported to the FBR in real time through an integrated system.
To ensure the security and integrity of the invoicing data, the FBR has clarified that only four approved license integrators can facilitate the onboarding process for retailers. These integrators are selected based on strict compliance, technical infrastructure, and their capability to provide seamless integration between retailer systems and the FBR’s centralized invoice monitoring platform.
The initiative is designed to support the implementation of Pakistan’s real-time digital invoicing regime. Businesses that fall under the purview of this mandate—such as large retailers, chain stores, and other commercial enterprises specified in the SRO—are required to work exclusively with these authorized integrators for system integration. Unauthorized attempts to integrate through non-licensed vendors will not be recognized by the FBR, and businesses may face penalties or non-compliance notices.
The FBR has emphasized that this controlled and limited licensing ensures both quality assurance and data security. The selected integrators are required to offer end-to-end solutions, including technical support, software integration, and training for retailers to efficiently transition to the digital invoicing platform.
By centralizing invoice reporting, the FBR aims to create a more transparent retail economy, minimize tax evasion, and enhance the efficiency of tax collection. This system also benefits businesses by reducing paperwork, enabling smoother audits, and providing a more accurate financial trail.
The government has been gradually shifting towards a tech-based taxation system over the past few years, and this announcement marks another step in that digital transformation journey. Retailers are now encouraged to promptly contact one of the approved integrators to avoid any disruptions in business operations or compliance issues.
This directive serves as a wake-up call to the retail sector, particularly those who have not yet integrated or are considering third-party vendors. Only the officially designated integrators are permitted to carry out the registration and technical setup required for FBR’s digital invoice system.
With this latest move, the FBR reinforces its commitment to building a robust digital infrastructure for tax compliance and positions Pakistan further along the path to becoming a digitally-enabled economy. Stakeholders in the retail and technology sectors are advised to follow these developments closely and align their operations with the latest regulatory requirements.