Further Tax and Extra Tax in FBR Invoicing
Further tax and extra tax are additional charges that apply in specific situations — often to unregistered buyers or certain goods. Here is what they are and how they appear on FBR invoices.
What further tax is
Further tax is an additional amount charged in defined circumstances, most commonly on supplies to buyers who are not sales tax registered. It sits on top of the normal sales tax.
Its purpose is to encourage registration by making supplies to unregistered persons more expensive.
What extra tax is
Extra tax is a separate additional charge applied to certain specified goods under specific rules. It is distinct from further tax and applies to different situations.
The two are often confused, but they are governed by different provisions and appear as separate fields.
Where they must not appear
These charges do not apply to every sale type. For example, applying extra tax to reduced-rate or certain exempt sale types triggers FBR validation errors.
Knowing when each charge is and is not allowed is essential to getting invoices accepted.
Handling them correctly
Digi Invoice applies further tax and extra tax only where the sale type and buyer status call for them, and validates the result before posting.
That prevents the common error of adding a charge on a sale type that FBR does not permit it on.