FBR Digital Invoicing in Pakistan (2026): The Complete Guide
FBR Digital Invoicing explained: who must use it, the Rs 1,000,000 fine, digital vs e-invoice, a worked 18% invoice and how to start. Updated October 2026.
The short answer
This page explains FBR Digital Invoicing from start to finish. You will learn what it is, who must use it, what the law says in 2026, what it costs, and how to start. Updated October 2026.
FBR Digital Invoicing is the Federal Board of Revenue's real-time sales tax invoice system. Every sales tax registered business in Pakistan must now send each invoice to FBR the moment it is made. Under SRO 1852(I)/2025 (dated 24 September 2025), the last group had to go live by 31 December 2025.
Four numbers to remember. Not integrating costs Rs 1,000,000 under the Finance Act 2026. PRAL's connection is free. A licensed integrator may charge at most Rs 10 per invoice. Your production token (the security key FBR gives your software) lasts 5 years.
What is FBR Digital Invoicing?
In the old way, you made a sales tax invoice on paper or in your own software, and FBR only saw it later in your return. Now your software sends every invoice to FBR in real time through the Digital Invoicing (DI) API. An API is a connection that lets two software systems talk to each other.
FBR checks the invoice in a few seconds. It sends back an IRN (Invoice Reference Number — the unique number FBR gives every invoice) and a QR code (a square barcode anyone can scan to check the invoice). You must print both on the invoice, with the official FBR Digital Invoicing logo. See the logo and QR code print rules.
This makes invoices hard to fake. Your buyer can scan the QR code to verify the invoice, and buyers cannot claim input tax on an invoice without a valid FBR IRN.
Digital invoice vs e-invoice vs a normal invoice: what is the difference?
In Pakistan, “digital invoicing” and “e-invoicing” mean the same FBR system. FBR's own name for it is Digital Invoicing (DI). The real difference is between an invoice FBR has checked and one it has not.
A PDF emailed to your buyer is electronic, but it is not an FBR digital invoice. It only becomes one when your software sends it to FBR first and gets an IRN back. This is the part many businesses miss.
| Point | Normal (paper) invoice | PDF / email invoice | FBR digital invoice |
|---|---|---|---|
| Sent to FBR when made? | No | No | Yes, in real time |
| IRN and QR code | No | No | Yes, from FBR |
| Buyer can verify it | No | No | Yes, by QR scan or SMS |
| Buyer can claim input tax | Not after integration | Not after integration | Yes |
| Allowed for a registered seller in 2026 | No | No | Yes |
What does a digital invoice look like? (worked example)
Here is a made-up example. A Faisalabad distributor sells 50 cartons of soap at Rs 1,200 each to a registered shop in Lahore. Sales tax is 18%.
| Field | Value |
|---|---|
| Invoice type | Sale Invoice |
| Quantity and unit | 50 cartons |
| Value excluding tax | 50 × Rs 1,200 = Rs 60,000 |
| Sales tax at 18% | Rs 10,800 |
| Total the buyer pays | Rs 70,800 |
| Sent back by FBR | IRN + QR code, printed with the FBR logo |
The seller also enters both NTNs, the buyer's registration type, the HS Code and the sale type. If any field is wrong, FBR rejects the invoice with an error code and no IRN. You fix it and send it again. Good software catches these errors before sending. The common codes are listed in FBR digital invoicing error codes.
How it works, step by step
- Have an active NTN and STRN. These are your tax number and your sales tax registration number.
- Enrol on IRIS. Log in to IRIS (FBR's online tax portal), open the Digital Invoicing tab, and choose API Integration. The full steps are in how to register for FBR digital invoicing.
- Pick PRAL or a licensed integrator. PRAL is free but has no invoicing screen. A licensed integrator gives you ready software. Compare them in licensed integrator vs PRAL.
- Pass the sandbox tests. The sandbox is FBR's free practice system, where test invoices do not count as real. You must pass the scenarios for your business type (SN001 to SN028).
- Get your production token and go live. FBR issues it automatically after the tests. From then on, every real invoice gets an IRN and a QR code in seconds.
Who must use it, and what happens if you don't
FBR switched businesses on in groups through SROs. An SRO (Statutory Regulatory Order) is an official FBR order. The rollout covered importers, manufacturers, wholesalers, distributors and retailers. Today, if you are sales tax registered, you are expected to issue digital invoices. Check your case in who must use FBR digital invoicing.
The fines are real. Under clause (25) of section 33 of the Sales Tax Act 1990, as changed by the Finance Act 2026, not integrating costs Rs 1,000,000. If the failure goes on for one more month, a further penalty of up to Rs 5,000,000 can follow, and the shop or office can be sealed. Your sales tax registration can also be suspended. The full list is in penalties for not using FBR digital invoicing.
What must be on a compliant digital invoice?
A compliant invoice shows seller and buyer details: names, NTN or CNIC, addresses and registration type. Each item line shows the HS Code (a standard product number), quantity, unit, sale type, value and tax.
On top of that, it carries the FBR IRN, the QR code and the FBR Digital Invoicing logo. Some sale types have extra rules. For example, 3rd Schedule goods are taxed on the printed retail price, and reduced-rate and exempt sales need their own fields filled in.
The fastest way to start
You have two choices. You can build your own API connection with your developers, or you can use ready software. Digi Invoice is ready-made FBR digital invoicing software built on FBR's DI API v1.12. You create an account, finish a guided business and FBR setup, and can post your first real invoice the same day.
Digi Invoice checks every invoice against FBR's DI v1.12 rules before it is sent: HS Codes, tax rates, NTN/CNIC and buyer registration. It adds the IRN and QR code for you, and keeps a ledger with bulk PDF printing for audits. Not sure which tool to choose? Read the best FBR digital invoicing software checklist or create your Digi Invoice account.
Need help? Contact Digi Invoice — WhatsApp 0300 8680363, Monday to Saturday, 10 AM to 5 PM.
Difficult words in this guide
- IRN: Invoice Reference Number, the unique number FBR gives every invoice.
- IRIS: FBR's online tax portal, where you enrol for digital invoicing.
- PRAL: Pakistan Revenue Automation (Pvt.) Ltd, the FBR company that runs the digital invoicing system.
- Sandbox: FBR's free practice system. Test invoices there do not count as real.
- Production token: the security key that lets your software send real invoices to FBR. It lasts 5 years.