All categories covered: FBR extends new set of rules for e-invoicing

ISLAMABAD: The Federal Board of Revenue (FBR) has extended new set of rules for e-invoicing and integration of sales transactions to all categories of taxpayers (corporate and non-corporate).

Talking to Business Recorder, Adnan Mufti, partner at Moore Shekha Mufti, Chartered Accountants explained that the FBR has issued new set of rules for e-invoicing and integration of sales transactions vide Notification vide SRO 709(1)12025 dated 22 April 2025. SRO 709 has been in terms of Rule 150Q(2) of the Sales Tax Rules 2006. SRO 709 has notified the corporate and non-corporate sector to electronically integrate their hardware and software with FBR’s computerised system used for generation and transmission of the e-invoice.

However, this has left many businesses in a fix who are unable to factor out whether the new scheme is applicable to FMCGs or to entire taxpayers’ community.

E-invoices integration: FBR sets May 1 deadline for corporate entities

Adnan Mufti further explained that originally the FBR had issued SRO 1525 dated 10 November 2023 which introduced Rule 150Q of Sales Tax Rules 2006. In terms of Rule 150Q of such rules, FBR had issued SRO 28 dated 10 January 2024, whereby, subject integration was limited to only FMCG sectors. Such integration was applicable from 1 February 2024.

However, recently SRO 69 dated 29 January 2025 brought into place a new and overhauled text of Rule 150Q. The latest SRO 709 has been issued under such revamped Rule 150Q and broadly introduced 2 major changes, i.e., category of taxpayers to whom the rules would apply and date of application thereof. He contended that since previous text of Rule 150Q has been substituted; its underlying SRO 28 has also been done away with.

Mufti further stressed out that now the earlier requirements of integration, which was only limited to FMCG sectors, has also been withdrawn and the new set of procedures have been extended to all categories of new category of taxpayers (corporate and non corporate), wef, new deadlines, ie, dates May 2025 and June 2025, as the case may be. Taking out the apparent confusion, Mufti was of the view that the foregoing issue needs to be addressed by FBR either by rescinding SRO 28 dated 10 January 2024 or issuing a clarification to this effect before the matter is taken to superior courts for litigation.

He further lamented FBR for prescribing only one week’s time for implementation of new scheme by the corporate sector without any consultation with stakeholders, which was impractical. The apparent haste on the part of tax administration is also evident by the fact that the Sales Tax General Orders required to be issued to effect complete implementation of subject scheme, have also not been issued by FBR as yet.

Mufti called upon for the need for on boarding all stakeholders including ICAP, PBC, FPCCI and KTBA for effective implementation of the new framework so that all technical/legal glitches of the scheme are satisfactorily removed.

Copyright Business Recorder, 2025