The Federal Board of Revenue has introduced significant amendments to the Sales Tax Rules 2006, making it mandatory for all sales tax integrated persons to enable digital payment facilities such as debit and credit card machines, QR codes, or any other available mode of electronic transaction at every sales point. The updated framework, enacted through the Finance Act 2025 and issued in Islamabad, seeks to strengthen transaction transparency and align retail operations with Pakistan’s broader digital economy objectives.
Under the revised regulations, integrated persons must ensure that digital payment facilities are operational and that sales conducted through these methods are not unreasonably refused. Businesses are required to register their outlets, points of sale, or electronic invoicing machines with the FBR’s online system. No taxable supply can be made outside of these integrated channels, ensuring all transactions are captured within the FBR’s computerized monitoring framework.
The updated rules require point-of-sale and electronic invoicing software to have the capability of generating real-time alerts to the FBR in the event of any suspected malpractice, error, or system inconsistency. All such incidents must be logged for accountability. Additionally, the FBR now has the authority to direct integrated businesses to install CCTV cameras at each point of sale to record transactions, with footage stored for at least one month and provided to tax authorities upon request.
Even in the case of exempt goods, businesses are obligated to issue invoices through systems integrated with the FBR’s computerized network. The full cost of integration, including hardware, invoicing software, and associated systems, will be borne by the business itself. All integrated outlets must also display a signboard featuring the FBR’s logo, the text “Integrated with FBR,” and the registration number of each approved invoicing system, verifiable through the Board’s official channels.
For e-commerce operations, including online marketplaces, websites, and mobile applications, registration with the FBR’s system is mandatory. All online transactions must generate auto-electronic invoices in compliance with sales tax general orders. Every taxable supply or service must be accompanied by a real-time verifiable electronic sales tax invoice, which must be retained for six years in digital form.
The updated framework includes strict penalties for tampering with systems, conducting off-record sales, or violating any provisions of the Sales Tax Rules. Integrated businesses must also ensure smooth functioning of all hardware and software, promptly report operational failures, damage, disruptions, or tampering within 24 hours, and provide documented evidence when requested by the relevant tax commissioner.
The FBR’s latest amendments mark a decisive move toward formalizing digital transactions across Pakistan’s retail and e-commerce sectors. By mandating universal adoption of integrated payment systems, the regulator aims to reduce sales tax evasion, improve compliance, and bring greater transparency to both physical and online business transactions.
