The Federal Board of Revenue (FBR) has introduced updated compliance requirements for sales tax-registered businesses, mandating the integration of debit and credit card machines, QR code systems, and other digital payment options at all sales points. The move, formalized through amendments to the Sales Tax Rules 2006 under the Finance Act 2025, aims to strengthen digital transaction monitoring and curb tax evasion.
Under the revised regulations, integrated persons — businesses already connected to FBR’s digital invoicing system — must ensure that their payment infrastructure supports various modes of digital transactions, including card payments and QR codes. According to the FBR, sales made through these channels “shall not be ordinarily refused,” signaling a strict policy against businesses that reject digital payment options.
The new rules require businesses to register all outlets, points of sale, or electronic invoicing machines with the FBR’s online system. No sales are permitted outside of these integrated systems. Additionally, point-of-sale or invoicing software must be capable of generating automatic alerts to the FBR’s system in the event of errors, malpractices, or inconsistencies, while also maintaining logs for verification purposes.
In a move to further enhance oversight, the FBR now has the authority to require integrated persons to install CCTV cameras at sales points, with recordings retained for a minimum of one month. These recordings must be made available to tax authorities upon request. Even the supply of tax-exempt items will require issuance of electronic invoices through systems linked to FBR’s computerized network.
The cost of integration, including hardware and software, will be borne by the businesses themselves. Each integrated outlet will be required to display signage carrying the FBR logo, the phrase “Integrated with FBR,” and the official registration number of its invoicing software or point-of-sale system, which must be verifiable through FBR’s verification services.
For e-commerce and online marketplaces, the FBR now mandates the registration of websites, mobile applications, and sales platforms with its system to ensure that auto-generated electronic invoices are recorded for every transaction. Businesses must issue real-time, verifiable electronic invoices for all taxable goods and services, with records retained for six years in electronic format.
Strict penalties will apply for tampering with the system, making unauthorized sales, or violating any provision of the updated rules. Such violations could result in fines under Section 33 of the Sales Tax Act, along with other restrictions as provided under the law.
Furthermore, businesses must ensure the smooth functioning of all invoicing and payment hardware and software, reporting any failures, damage, or tampering to both the FBR and the relevant tax commissioner within 24 hours, accompanied by supporting documentation.
The updated regulations mark another step in FBR’s ongoing digitalization strategy, reinforcing its focus on transparency, real-time transaction monitoring, and compliance in both physical retail and online marketplaces.