FBR Digital Invoicing for Timber, Wood and Plywood Dealers in Pakistan (2026)

This page explains FBR digital invoicing for timber merchants, sawmills and plywood, MDF and board dealers. It shows the tax rate, the HS codes to use, and one full invoice example.

Timber, sawn wood, plywood, MDF and particle board are normal standard-rate goods. A registered dealer charges 18% sales tax on the sale value and must post every sales invoice to FBR in real time. Under SRO 1852(I)/2025 (dated 24 September 2025), the last group had to be live by 31 December 2025. Since the Finance Act 2026, a business that is still not integrated (connected to FBR's system) faces a Rs 1 million penalty, and up to Rs 5 million more if it still has not connected one month later.

Most timber lines use five HS codes (an 8-digit product number that tells FBR what you sold): 4403 for logs, 4407 for sawn wood and planks, 4410 for particle board and chipboard, 4411 for MDF and hardboard, and 4412 for plywood. The sandbox tests (FBR's free practice system where test invoices do not count as real) are usually SN001 for a registered buyer and SN002 for an unregistered buyer.

This guide is general information, not tax advice. Rates and rules can change, so confirm your case with FBR or your tax adviser.

Timber and plywood wholesalers. If you hold an STRN (Sales Tax Registration Number), every sale you make must be a digital invoice with an IRN (Invoice Reference Number — the unique number FBR gives every invoice) and a QR code. This includes sales to furniture makers, builders, contractors and shops. Furniture makers who buy from you have their own guide: 'FBR Digital Invoicing for Furniture & Home Furnishing Shops (2026)'.

Sawmills. A sawmill turns logs into planks, beams and sheets. Changing one article into a new, different article is usually treated as manufacture under the Sales Tax Act 1990, so most sawmills are manufacturers for sales tax. Manufacturers were among the first groups named for digital invoicing. 'FBR Digital Invoicing for Manufacturers and Factories in Pakistan (2026)' explains what that means.

Importers. Much of the hardwood, softwood and board sold in Pakistan is imported. Commercial importers pay 18% sales tax at the port and usually a 3% value addition tax (an extra sales tax that commercial importers pay at import). When they sell the goods on, the sale is still posted to FBR as a digital invoice. 'FBR Digital Invoicing for Importers: Green Channel at Risk from July 2026' covers the import side.

Small retail wood shops. A small shop that is not registered for sales tax is not in the digital invoicing system. But once its turnover makes it register, it must post invoices too. If you are not sure, check your status on IRIS (FBR's online tax portal).

Use the right unit. FBR checks the UoM (unit of measurement — the unit the quantity is counted in). Logs and sawn wood are often sold by cubic foot, but FBR's list uses metric units. Plywood and boards are sold by sheet, so 'Numbers, pieces, units' fits. FBR only accepts the units it allows for each HS code, or it rejects the invoice. 'UoM in FBR Digital Invoicing: Picking the Right Unit of Measurement (2026)' shows how to find the right one.

Pick the right buyer type. Mark the buyer as Registered or Unregistered. For an unregistered buyer, further tax (an extra tax, commonly about 4% of the value before sales tax) usually applies on top of the 18%. 'Registered vs Unregistered Buyers on FBR Invoices: Registration Type, Further Tax and ATL Checks' shows how to fill it.

Worked example. A dealer sells 50 sheets of 18 mm plywood (HS 4412) at Rs 4,000 each to a registered furniture maker. Value before tax: 50 x Rs 4,000 = Rs 200,000. Sales tax at 18%: Rs 36,000. Invoice total: Rs 236,000. The software sends this to FBR, gets the IRN back in seconds, and prints it with the QR code and the FBR Digital Invoicing logo.

Cutting and delivery. If you charge for cutting, edging or delivery on the same bill, it is normally part of the sale value and is taxed at 18% with the goods. 'Freight, Delivery and Packing Charges on an FBR Invoice (2026): Do You Charge Sales Tax?' explains why.

Buying from unregistered sellers. Many logs come from farmers and small contractors who are not registered. You get no input tax (the sales tax you already paid on purchases, which you can subtract from the tax you owe) on these purchases. Keep a clean purchase record anyway. 'How to Check a Supplier Before Claiming Input Tax: FBR Invoice, ATL & Registration Checks (2026)' helps you check suppliers.

Credit sales. Timber is often sold on udhaar (credit). The FBR invoice must still be posted when the goods leave your yard, not when the buyer pays. 'Udhaar (Credit Sales) and FBR Digital Invoicing: The Section 73 Rule — Rs 50,000, Bank Payment and 180 Days (2026)' explains the bank-payment rule.

Wrong HS code. A plywood sale posted under the log code may be accepted, but it will not match your import records or stock. Save each item once with its correct HS code so the software fills it the same way every time.

Digi Invoice lets you save timber, plywood and board items with their HS code, unit and rate once. Each sale is checked before it goes to FBR, posted in real time, and printed with the IRN, QR code and FBR logo. You can start in the sandbox with a free account on the register page, and 'How to Register for FBR Digital Invoicing (2026): Step by Step on IRIS' shows the IRIS steps.

HS code — an 8-digit product number that tells FBR exactly what you sold.

UoM (Unit of Measurement) — the unit the quantity is counted in, such as pieces or kilograms.

Further tax — an extra tax, commonly about 4%, added when you sell to an unregistered buyer.

Value addition tax — an extra 3% sales tax that commercial importers usually pay at the port.

IRN (Invoice Reference Number) — the unique number FBR gives every invoice it accepts.