One FBR E-Invoice for Sales Tax, FED and Islamabad Services Tax: The October 2026 Notification Explained

This page explains a new FBR rule in plain words. It tells you who it affects, what your e-invoice must now show, and what you do not have to do.

On 2 October 2026, Business Recorder reported a new FBR notification on electronic invoices. It says an e-invoice must carry the details needed under three laws: the Sales Tax Act 1990, the Federal Excise Act 2005, and the Islamabad Capital Territory (Tax on Services) Ordinance 2001. When one sale attracts more than one of these taxes, a single e-invoice is enough, as long as each tax is shown separately on it.

The best news is for businesses that are already live. If you are already integrated with FBR's system (connected so every invoice goes to FBR in real time), you do not need a separate technical integration just because of FED (Federal Excise Duty — a separate federal tax on some goods and services) or Islamabad services tax.

This guide is general information, not tax advice. FBR had not put a separate SRO number on the reports we saw, so read the notification itself on fbr.gov.pk before you change your invoices.

Makers and importers of FED goods. FED is charged on goods such as cement, sugary cold drinks, juices and cigarettes. These businesses often charge sales tax and FED on the same sale. Our guides 'FBR Digital Invoicing for Hardware Stores, Cement & Building Material Dealers (2026)' and 'FBR Digital Invoicing for Cold Drink, Juice and Mineral Water Distributors (2026): Printed-Price Tax, FED and the Low-Sugar Rule' explain how those goods are taxed.

Service providers in Islamabad. Sales tax on services is a provincial tax in Sindh, Punjab, KP and Balochistan. But in the Islamabad Capital Territory (ICT), FBR itself collects it under the ICT Tax on Services Ordinance 2001. So an Islamabad consultant, IT firm, advertiser or contractor bills services tax through FBR. 'FBR vs SRB, PRA, KPRA & BRA: Who Handles Service E-Invoicing in Pakistan (2026)' shows which authority you report to.

Businesses that sell goods and services together. A firm that supplies goods and also installs or services them may face sales tax and services tax on the same deal. The new rule lets it issue one invoice instead of two, if each tax has its own clear line. 'Does FBR Digital Invoicing Apply to Services? Goods vs Services Explained (2026)' covers the basics.

If your business only sells normal 18% goods with no FED, nothing changes for you.

One invoice, separate lines for each tax. The value of the sale, the sales tax, the FED and the services tax must each be clear on their own. Do not add them into one total tax figure. FBR needs to see each amount to match it with the right tax return.

Use the right sale type. The sale type is the box on an FBR invoice that tells FBR what kind of sale it is. FBR's Digital Invoicing system already has sale types for these cases. For example, 'Services' is sandbox scenario SN019, and 'Services (FED in ST Mode)' is SN018. The sandbox is FBR's free practice system where test invoices do not count as real. FED in ST mode means FED is charged and collected the same way as sales tax.

Fill the FED field. Each invoice line in FBR's DI API v1.12 (the technical rules software uses to send invoices to FBR) has its own FED field. Put the FED amount there, not inside the sales tax amount. If the numbers do not match FBR's checks, the invoice is rejected and you get no IRN (Invoice Reference Number — the unique number FBR gives every invoice).

Keep the IRN and QR code on the printout. The rule does not change printing. Every invoice still needs the IRN, the QR code and the FBR Digital Invoicing logo. Mistakes can be fixed within 72 hours on IRIS (FBR's online tax portal) under 'FBR STGO 01 of 2026: Invoice Amendment, Cancellation & the 72-Hour Rule'. After that, issue a credit note that points to the original IRN.

Step 1. List the taxes on your sales. Check your sales tax registration and your products. Mark which items carry FED and which services fall under Islamabad services tax.

Step 2. Check your item setup. Each item or service should have the right HS code (an 8-digit product number that tells FBR what you sold), sale type and FED rate saved, so the software fills the fields the same way every time.

Step 3. Post one test invoice in the sandbox for each mixed case. A test that passes there will usually pass in production (the live system where invoices count).

Step 4. Do not pay for a 'new integration'. The notification says integrated businesses do not need one for FED or Islamabad services tax. If a vendor asks for a fresh integration fee for this alone, ask them to show you the rule. Businesses that are still not integrated face the Finance Act 2026 penalty of Rs 1 million, plus up to Rs 5 million more if the failure goes on. 'FBR Sales Tax Circular 01 of 2026 Explained: Invoices for Exempt Sales and Advances, Rs 1 Million Non-Integration Penalty, Simulated Invoice Register and the 20% Input Tax Penalty' sets out these penalties.

Digi Invoice already supports FED and services sale types. You save each item once with its HS code, sale type and FED rate. When you post, it shows sales tax and FED on separate lines, checks them against FBR's rules and prints the IRN and QR code. The steps are in 'How to Register for FBR Digital Invoicing (Step by Step)'. Create a free account and test in the sandbox first.

FED (Federal Excise Duty) — a federal tax on some goods and services, such as cement, sugary drinks and some services, under the Federal Excise Act 2005.

ICT services tax — sales tax on services provided in the Islamabad Capital Territory, collected by FBR under the ICT (Tax on Services) Ordinance 2001.

FED in ST mode — FED that is charged, shown and paid in the same way as sales tax.

Sale type — the box on an FBR invoice that tells FBR what kind of sale it is.

Integration — the connection between your billing software and FBR, so each invoice is sent to FBR in real time.

For more terms, see 'FBR Digital Invoicing Dictionary — 25 Key Terms Explained'.