FBR IRIS vs Digital Invoicing: What's the Difference?
IRIS and Digital Invoicing are two different FBR systems. IRIS handles registration and tax returns; Digital Invoicing registers every sales tax invoice in real time. Here's which one your business needs.
Two different FBR systems
Businesses often mix these up. IRIS is FBR's online portal for taxpayer registration and filing. You log into IRIS to file income tax returns and sales tax returns, to register, and to reply to notices.
Digital Invoicing is a separate, newer system. It works on each single invoice. Every sales tax invoice is sent to FBR through the Digital Invoicing API the moment you issue it, and FBR sends back a unique invoice number and a QR code (a square barcode) for it.
IRIS — registration and returns
You use IRIS now and then: to register as a taxpayer, to file your monthly sales tax return and yearly income tax return, and to reply to FBR letters. IRIS is a portal you log into. It does not sit inside your day-to-day billing.
Digital Invoicing — every invoice, in real time
Digital Invoicing works all the time, inside your billing. Each invoice is checked and saved with FBR as you issue it. The FBR invoice number and Version 2.0 QR code that come back must be printed on the invoice.
Because each invoice is captured one by one, your invoices match neatly with what you later report in your returns.
Which one do you need?
Both, for different jobs — but only Digital Invoicing needs an integration (a software link). IRIS needs nothing more than a login. Digital Invoicing needs a working link to the DI API, which you can build yourself or get ready-made.
Digi Invoice gives you the certified link. It checks every invoice against FBR's v1.12 rules before it is sent, and prints the QR code and invoice number for you. So meeting the digital invoicing rule takes a signup, not a software project.