The Federal Board of Revenue (FBR) in Pakistan announced significant changes to the electronic invoicing system. These changes will initially affect specific consumer goods, and manufacturers, importers, wholesalers, and distributors of fast-moving consumer goods are now required to issue electronic sales tax invoices via the FBR-approved system.
The highlights of this announcement include the introduction of “integrated suppliers” who can declare invoices on the central platform. Additionally, registered buyers who receive electronic notifications must integrate into the new FBR system.
The new system works by implementing a real-time verifiable electronic invoice system. Invoices must be sent in a structured JSON format, and each invoice is assigned a unique identifier. The document storage period has also been extended to six years.
The announcement also states that section 50 of the Sales Tax Act, 1990, requires certain registered persons to transmit sales tax invoices electronically. This mandate applies to importers, manufacturers of fast-moving consumer goods, wholesalers (including dealers), distributors of fast-moving consumer goods, and wholesaler-cum-retailers involved in bulk import and supply of such goods wholesale to retailers.
The notification, effective from February 1, 2024, allows registered persons to apply for an extension for compliance if they can provide a plausible cause. The term “fast-moving consumer goods” refers to consumer goods supplied in retail marketing based on the daily demand of a consumer, excluding durable goods.