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FBR Digital Invoicing for dealers: a plain guide

What FBR Digital Invoicing is, who it applies to, what each invoice must carry, and how to get connected without stopping your counter. Written for building-material dealers; useful for any sales-tax registered shop.

Last checked: 10 November 2026. This is general information, not tax advice. FBR changes dates and details by notification, so confirm what applies to your business on fbr.gov.pk or with your tax adviser.

In short

  • If you are registered for sales tax, every sales invoice you issue has to go to FBR's system at the moment you issue it, and FBR sends back an FBR invoice number.
  • That number and a QR code go on the invoice you give your customer.
  • You connect through a licensed integrator. PRAL, FBR's own IT company, is one of them; others are private companies.
  • If you are not registered for sales tax, Digital Invoicing does not apply to you.

What is Digital Invoicing?

Before, a registered business issued its own invoices and reported them later in its monthly sales tax return. With Digital Invoicing, the invoice itself is sent to FBR in real time. FBR checks it, gives it a unique number and keeps a copy, so FBR sees the sale the same day your customer does.

The rules are in Chapter XIV of the Sales Tax Rules, 2006, which FBR replaced through S.R.O. 69(I)/2025 dated 29 January 2025, under section 50 of the Sales Tax Act, 1990.

Who has to do it?

  • Sales-tax registered persons (they have an STRN). FBR has brought registered businesses in by phases through notifications since 2025 and has changed the dates more than once, so check the date that applies to you.
  • Tier-1 retailers already on FBR's POS integration have their own, separate rules for their counter sales.
  • Not registered? Then Digital Invoicing is not for you today. If you become registered, it will be.
  • Small shopkeepers who opt for FBR's fixed tax procedure for tax year 2026 have their own rules: see our fixed tax scheme guide.

Even before your own date, your registered customers need proper invoices to claim their input tax, so contractors and companies will start asking for the FBR invoice number.

What each invoice must show

The invoice your customer receives carries:

  1. The FBR invoice number returned by FBR's system.
  2. A QR code made from that number, so anyone can check the invoice.
  3. Your NTN and STRN, and your registered buyer's NTN or STRN.
  4. For each item: description, HS code, quantity and unit (from FBR's list of units), value, sales tax rate and amount.

The exact fields are in PRAL's Digital Invoicing API technical document. Your software should fill them for you from the product and customer.

How to get connected

  1. Check your registration. You need an active sales tax registration (NTN and STRN) and access to FBR's IRIS portal.
  2. Choose how to connect. Use software that connects through PRAL with your own token, or a licensed integrator of your choice. FBR does not charge registered persons for integration; an integrator may charge for setup (FBR FAQs).
  3. Get your security token. PRAL issues a token for your NTN. You start in the sandbox (a test system) and get production access once your test invoices pass.
  4. Set up your products. Give each product its HS code, FBR unit of measure and sales tax rate. This is the step most dealers underestimate: steel, cement, tiles and paint all have different HS codes. Our HS codes list has the codes for building materials from FBR's customs tariff.
  5. Test. Make test sales in the sandbox until FBR accepts them all.
  6. Go live. Switch to production. From now on every sale is sent to FBR when you save it.

Choosing software

Ask any software seller these questions:

  • Does it send every sale at once, without someone pressing a button later?
  • What happens when FBR or the internet is down? The rules let you keep issuing invoices offline, but they must be uploaded within 24 hours of the connection coming back.
  • Does it print the FBR invoice number and QR code on both the receipt and the full invoice?
  • Can it hold an HS code, unit and tax rate for each product?
  • Can you test in the sandbox with your own token before going live?
  • Does it keep your invoices for at least six years, as the sales tax law requires?

Common mistakes

  • Wrong HS code or unit. FBR rejects the invoice, and the sale is not reported until it is fixed.
  • Missing buyer details. For a registered buyer, a wrong NTN or STRN means they cannot claim their input tax.
  • Bills outside the system. A handwritten bill for a sale that should be digital is not a valid sales tax invoice.
  • Editing a sent invoice. Once FBR has it, correct it with a proper debit or credit note; ask your adviser how.
  • Skipping the sandbox. Test first; going live with untested settings means rejected invoices on a busy day.

Deadlines and penalties

FBR sets the dates by notification and has moved them several times, and penalties for not issuing invoices as required are set in the Sales Tax Act. Because both change, we do not repeat figures here: check FBR's legal provisions and latest notifications, or ask your tax adviser.

How KeyTup handles it

KeyTup connects to FBR through PRAL, using the security token PRAL issues to your business. KeyTup is not itself a licensed integrator.

  1. In Business settings, enter your NTN and STRN, turn on Send sales to FBR, pick Sandbox (testing) or Production (live) and your province, and paste your security token. Test FBR connection checks it.
  2. On each product, set the HS code, FBR unit and sale type.
  3. Every sale is sent to FBR as soon as it is saved. The FBR invoice number and QR code print on the receipt and the invoice.
  4. If FBR or the internet is down, KeyTup tries again every 15 minutes, and you can press Send to FBR on the sale.

FBR invoicing comes with the plans that include it (see pricing). If you are not registered, keep it switched off; everything else in KeyTup works the same.

Questions

Do I need Digital Invoicing if I am not registered for sales tax?

No. It applies to sales-tax registered persons. If you register later, you will need it from then on.

Does FBR charge for it?

FBR says registered persons pay no fee to FBR for integration. A licensed integrator or software company may charge for its service.

What if the internet goes down at my shop?

Keep selling. Invoices issued while offline must be sent to FBR within 24 hours of the connection coming back; good software does this by itself.

Where do I get the security token?

From PRAL, for your NTN: first for the sandbox, then for production once your tests pass.

Can I keep giving handwritten bills?

Not for sales that must be digital invoices. A handwritten bill does not have an FBR invoice number, so your registered customer cannot use it.

Official sources