FBR Digital Invoicing Dictionary — 25 Terms Explained in Simple English
A plain-English dictionary of 25 FBR Digital Invoicing words — IRN, NTN, CNIC, STRN, sandbox, HS Code, SRO, QR code, PRAL, IRIS and more — each explained in one or two simple lines for Pakistani business owners.
How to use this dictionary
This page explains 25 common FBR Digital Invoicing words in simple English. Each word gets a short, plain meaning. Keep it open while you set up or post an invoice.
Two quick facts first. Your NTN is 7 digits and your CNIC is 13 digits. Every invoice you post gets a unique FBR number (IRN) and a Version 2.0 QR code, printed at 1.0 x 1.0 inch.
New to this? Also read our guide 'How to Register for FBR Digital Invoicing' for the full steps, and 'The FBR Invoice QR Code (Version 2.0)' for the print rules.
The numbers FBR puts on your invoice
IRN (Invoice Reference Number) — the unique number FBR gives your invoice after you post it. You must print it on the invoice. No IRN means the invoice is not valid for FBR.
QR code (Quick Response code — a square barcode) — printed on every invoice. FBR uses Version 2.0, size 25x25, at 1.0 x 1.0 inch. Anyone can scan it to check the invoice is real.
E-invoice (electronic invoice) — an invoice sent to FBR in real time and stamped with an IRN and QR code. A plain PDF with no IRN is not an e-invoice.
Words about who you are (registration)
NTN (National Tax Number) — your 7-digit tax number from FBR. It links every invoice to your business.
CNIC (Computerised National Identity Card) — your 13-digit ID card number. Sole owners often use it in place of an NTN.
STRN (Sales Tax Registration Number) — proof that you are registered for sales tax. You need this before you can use Digital Invoicing.
Buyer registration type — tells FBR if your buyer is 'Registered' (has a sales tax number) or 'Unregistered'. It must match FBR's records, or the invoice fails.
The FBR systems and the people who connect you
IRIS — FBR's online portal for registration and tax returns. You log in here to register and file, but invoices are posted through the Digital Invoicing system.
PRAL (Pakistan Revenue Automation Ltd) — the government company that runs FBR's Digital Invoicing system. It can connect your business for free.
Licensed integrator — a software provider that FBR has approved to connect businesses to its system. You can use PRAL or a private licensed integrator.
Integration — the one-time job of joining your billing software to FBR's system so invoices go across automatically. A ready platform does this for you.
Testing and going live
Sandbox — FBR's free practice system. Test invoices here do not count as real. You use it to check your setup before you go live.
Production token — the live key that lets you post real invoices to FBR. You get it after your sandbox tests pass. Keep it secret and safe.
Scenario ID — a code like SN001 that tells FBR which test case you are posting in the sandbox. It is needed in the sandbox only and is removed for live invoices.
What goes on each invoice line
HS Code (Harmonised System code) — a standard number for your product. FBR uses it to check the item and its tax rate. See our guide 'HS Codes in FBR Digital Invoicing'.
Sale type — the category of your sale, such as standard rate, reduced rate, zero-rated or 3rd Schedule. It decides the tax rate and the rules that apply.
SRO (Statutory Regulatory Order) — an official FBR order that changes a rule, a rate or a list. Some sales must show the SRO number.
Schedule (3rd, 8th) — a list inside the Sales Tax Act. 3rd Schedule goods are taxed on the printed retail price. The 8th Schedule lists reduced-rate items.
Tax words you will see on the invoice
Output tax — the sales tax you charge your buyer when you sell something.
Input tax — the sales tax you paid when you bought your stock. You can claim it back only if the purchase invoice has a valid IRN.
Further tax — an extra charge (commonly about 4%) added when you sell standard-rate goods to an unregistered buyer.
Extra tax — a separate special tax on a few goods. For reduced-rate, zero-rated or exempt sales it must be left empty, or FBR shows error 0091.
Withholding tax (tax withheld at source) — tax the buyer holds back and pays to FBR instead of the seller. It must be 0 or exactly equal to the sales tax.
Fixing and reporting an invoice
Debit note — a document that raises the value of an earlier invoice, for example after a price correction. It must point to the original invoice. See our guide 'Debit Notes and Credit Notes'.
Annexure-C — the part of your monthly sales tax return that lists your sales. Digital Invoicing fills it in for you from your posted invoices.
Ready to start? Create a free account and post your first FBR-compliant invoice the same day.