The Federal Board of Revenue (FBR) is moving registered businesses to digital invoicing. Instead of only printing or emailing an invoice, the invoice is also sent to FBR electronically, and FBR returns an invoice number and a QR code that appear on the invoice you give your customer. This guide explains the basics and a sensible order of work.
How it works
Your invoicing or accounting software connects to the FBR Digital Invoicing API using a token issued to your business. Each time you issue an invoice, the software sends its details to FBR. If FBR accepts it, you receive the FBR invoice number, and the QR code is printed on the invoice.
Who is affected
Registered sales tax persons in the sectors FBR has notified, including retailers, manufacturers, distributors and many online sellers. If you sell on Daraz, LAAM or your own store and you are registered for sales tax, confirm with your tax adviser whether and from when the requirement applies to you.
Steps to get set up
- Confirm you are covered. Check the FBR notification for your sector and your registration status.
- Get your credentials. Request the token and access from FBR through your IRIS profile. Keep the token private and regenerate it if it is ever shared.
- Choose software. Use a system that integrates with the FBR API, such as Daybook ERP, or have an integrator connect your existing system.
- Test in the sandbox. FBR provides test scenarios that match different kinds of sales. Complete the ones that apply to your business before going live.
- Go live. Switch to production credentials and start submitting real invoices.
- Reconcile every month. Compare invoices submitted to FBR with your books and your sales tax return.
Common mistakes
- Duplicate submissions. An invoice already accepted by FBR cannot simply be removed, so clicking Submit twice is costly. Use software that locks the invoice as soon as it is sent.
- Wrong tax rate or sale type. Each line needs the correct rate and scenario. Mistakes here lead to rejected invoices or wrong returns.
- Missing buyer details. Buyer registration details must match what FBR expects.
- Books and FBR out of sync. If invoices are entered in two places, they will eventually disagree. Enter once, and submit from the same record.
How Daybook can help
We can set up and run the integration for you as part of our tax and compliance services, or you can use the FBR invoicing module in Daybook ERP and submit invoices yourself.
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