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ISLAMABAD – August 2, 2025: The Federal Board of Revenue (FBR) has officially extended deadlines for mandatory sales tax integration of businesses across Pakistan, covering the corporate sector, importers, public companies, and individuals, as per SRO 1413(I)/2025 issued on Friday.
The extension, part of the government’s continued efforts to ensure full digital compliance, comes as a replacement to earlier Notification SRO 709(I)/2025 dated April 22, 2025. Businesses will now have until December 1, 2025, to fully integrate with the FBR’s centralized invoicing system.
Integration Process and Requirements
Under the new directive, sales tax registered persons across various income brackets and categories must register their hardware and software systems with the FBR through either licensed integrators or Pakistan Revenue Automation Ltd (PRAL).
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Following registration, these entities must undergo system testing and begin issuing electronic invoices, as part of the government’s strategy to digitize tax collection and enhance transparency.
Revised Deadlines by Category
FBR’s notification outlines new deadlines across different business tiers, with staggered timelines based on turnover size and taxpayer classification:
1. Public Companies
- Deadline for registration: Not specifically stated (implied by testing date)
- System testing deadline: August 25, 2025
- Electronic invoicing begins: September 1, 2025
2. Companies with Turnover Exceeding Rs 1 Billion
- Registration deadline: August 10, 2025
- System testing: August 25, 2025
- Start of e-invoicing: September 1, 2025
3. Importers
- Registration deadline: August 10, 2025
- System testing: August 25, 2025
- Electronic invoicing launch: September 1, 2025
4. Companies with Turnover Between Rs 100 Million and Rs 1 Billion
- Registration deadline: September 10, 2025
- System testing: September 30, 2025
- Start of e-invoicing: October 1, 2025
5. Companies with Turnover Below Rs 100 Million
- Registration deadline: October 10, 2025
- System testing: October 30, 2025
- E-invoicing commencement: November 1, 2025
6. Individuals and AOPs with Turnover Over Rs 100 Million
- Registration deadline: September 10, 2025
- System testing: September 30, 2025
- E-invoicing start date: October 1, 2025
7. Other Registered Persons (Non-Corporate Taxpayers)
- Registration deadline: November 10, 2025
- System testing: November 30, 2025
- Issuance of e-invoices: December 1, 2025
Objective: Digital Tax Reform and Transparency
The move to enforce electronic invoicing is a major component of the FBR’s broader digital tax reform agenda, which seeks to:
- Enhance documentation of economic activity
- Curb tax evasion and under-invoicing
- Improve real-time monitoring of sales and purchases
- Increase overall tax collection efficiency
By integrating businesses into a centralized invoicing system, the FBR expects greater accuracy in tax declarations and a reduction in tax leakages.
Licensed Integrators and PRAL to Facilitate Integration
Businesses are required to complete their integration either through FBR-licensed technology providers or Pakistan Revenue Automation Ltd (PRAL), the IT wing of the FBR. The system is designed to ensure seamless issuance of electronic invoices, with secure data transmission directly to the tax authority’s server.
A helpline and support desks have been established at Regional Tax Offices (RTOs) and Large Taxpayer Units (LTUs) across major cities to assist businesses in compliance.
FBR’s Warning on Non-Compliance
The FBR has also indicated that non-compliant businesses may face penalties or sanctions, including suspension of sales tax registration, fines, and ineligibility for tax refunds. However, the extended deadlines are aimed at giving businesses enough time to prepare and comply without disruption.
Conclusion
With the integration deadlines now clearly set, the onus lies on businesses—both large and small—to align with FBR’s digital mandate. The phased rollout gives sufficient lead time, but firms are advised to initiate the registration and testing process promptly to avoid last-minute complications.
The FBR maintains that this initiative is a cornerstone in creating a transparent, digitized economy, fostering compliance, reducing manual interventions, and ensuring tax fairness across all sectors.
