FBR IRIS Digital Invoicing and licence guide, in simple words

Law, deadlines, IRIS steps, licensed integrators, the licence for software companies, and the FBR FAQ in one page. For the PRAL error codes and sandbox scenarios, open the PRAL guide.

PRAL guidePractice in sandbox mode

This page is our own plain-language summary. It is not an official FBR or PRAL document and may become old. The Sales Tax Act, the Rules and FBR notices always win. When in doubt, check the official links or ask your tax practitioner or tax office.

Who must join and when

  1. 29 Jan 2025 Law

    SRO 69(I)/2025 puts the new Chapter XIV in the Sales Tax Rules. It is the base law for e-invoicing.

  2. 22 Apr 2025 All registered persons

    SRO 709(I)/2025 orders integration: 1 May 2025 for corporate and 1 Jun 2025 for non-corporate registered persons.

  3. 20 Jun 2025 Latest dates in the papers we have

    FBR moved the dates: 1 Jul 2025 for corporate and 1 Aug 2025 for non-corporate.

  4. Feb 2026 Software companies

    FBR re-formed the committee that checks applications for an integrator licence.

The FBR FAQ page still shows the older dates (1 Jun and 1 Jul 2025). The 20 Jun 2025 letter replaced them. FBR can move dates again, and your Commissioner can give extra time under rule 150V. Always check the latest FBR notice or ask your tax office.

PRAL or another integrator

PRAL as your integrator

  • Free. Rule 150XF says PRAL gives integration free of cost on demand.
  • PRAL does the IP whitelisting and gives you a sandbox to test.
  • Support through the PRAL DI CRM portal.

Another licensed integrator

  • You pick one from the FBR list. It may charge a fee, but not above the limit FBR sets.
  • It reviews your request, and it handles the next steps. PRAL does not whitelist your IP in this case.
  • Only a licensed integrator with a valid FBR licence may set up your system.

Steps in IRIS

  1. Step 1: Log in to IRIS
    Use your registration number and password, then open Digital Invoicing on the dashboard.
  2. Step 2: Choose the mode
    API Integration if you have software or ERP. Manual Invoice Generation has limited features.
  3. Step 3: Choose the integrator
    Pick PRAL (free) or another licensed integrator from the list, then press Submit.
  4. Step 4: Fill the technical details
    Contact person name, mobile and email, your software provider, cloud or on-premises, version, and the email for PRAL support. For sandbox you also choose your business nature and sector.
  5. Step 5: Give your IP addresses
    Hosting company, country, and 1 to 3 IPs. For more, upload the sample .xls file (up to 1 MB). PRAL accepts or rejects within about 2 working hours, and sandbox starts after that.
  6. Step 6: Test in the sandbox
    Get the sandbox token, then send test invoices for the scenarios matching your business. At least one successful invoice per scenario.
  7. Step 7: Get the production token
    When all assigned scenarios pass, the system creates your production token. Use the production address and token to go live.
  8. Step 8: If sending fails
    The system does not retry by itself. Check the Invoice Dashboard and send the invoice again.

Rules you must follow

Your duties as an integrated person

  • Sell only through your integrated outlets and point of sale systems (rule 150R).
  • Issue a real-time e-invoice for every taxable supply. Keep the record for six years on electronic media (150S).
  • Debit and credit notes must also be issued through the system (150S).
  • Exempt goods also need an e-invoice (150R).
  • Print the FBR invoice number and QR code on the receipt. The invoice number looks like XXXXXX-DDMMYYHHMMSS-0001 and the QR is 7 x 7 mm.
  • Show a signboard with the FBR logo and the words “Integrated with FBR”, plus the registration number of your software, at each outlet.
  • Do the closing at the end of the day, week and month, and keep logs of every change or cancellation (150R).
  • Annexure C of your sales tax return is filled automatically from these invoices.

What the invoice must show

  • FBR invoice number, QR code, software registration number, FBR logo.
  • Seller and buyer: name, address, registration number.
  • Date, tax period, description, quantity, unit of measure, HS code.
  • Value without tax, tax rate, tax amount, tax withheld, total discount, invoice reference number.
  • Extra tax, further tax, FED in sales tax mode, and SRO with serial number. A retailer selling to the general public (who is not also a manufacturer or importer) may skip these four.

Internet or power cut, system faults, checks

  • If the internet or power fails, mark those invoices as offline-mode invoices and upload them within 24 hours of restoration (150XC).
  • Report any failure, damage, tampering or dead hardware or software to FBR and your Commissioner within 24 hours (150XA).
  • Your Commissioner can give extra time to integrate: up to 60 days in total, in steps of 15 days. Until then you keep issuing paper invoices (150V).
  • Tax officers can visit, ask for records and for technical audit (150U, 150XD). If sales are not accounted for with an FBR number or QR, the officer can work out and recover the tax, and take penal action.
  • Tampering or breaking this chapter brings a penalty under section 33 of the Sales Tax Act (150X). The FBR FAQ says the same for late integration.
  • FBR may also ask you to take card and QR payments, and to record each counter on CCTV and keep it at least one month (150R). Buyers can check an invoice on the FBR website (150XB).

Licence for software companies

Who is this part for?

  • For software companies that want to become a licensed integrator (LI). Shops and normal taxpayers do not need a licence. You can simply use PRAL for free.
  • Without a licence, nobody may integrate registered persons through software (150XE). PRAL is the exception.

Documents to apply (rule 150XH)

  • Application in duplicate to the Board, with a full company profile.
  • Managers and technical staff: name, post, qualification, experience. Total number of employees.
  • Proof that you can build and connect ERP and payment systems. Projects of the last three years and a list of major clients.
  • Registration certificate from the Pakistan Software Houses Association or ICAP.
  • Audited accounts for the last three financial years. Paid-up capital of at least Rs. 10 million in the latest year.
  • Companies Act incorporation certificate, NTN certificate, sales tax registration if required, and CNICs of the directors.
  • A written statement that the company was never blacklisted and never involved in proven financial fraud. Any other papers FBR asks for.

How the decision is made (150XI)

  • The licensing committee checks the documents and your eligibility within 7 days of receiving the application. It may visit your office.
  • Within 15 days it recommends or rejects, and gives reasons.
  • The licence is granted with the Board's prior approval.

Licence terms

  • Valid for five years. Not transferable. A sub-contractor may not use it (150XJ).
  • Ask for renewal three months before it ends (150XK).
  • The licensee looks after the system after go-live: equipment, upgrades, bug fixes, quick troubleshooting, and safe real-time transmission to FBR (150XL).
  • The fee for set-up and integration can be charged, but not above the limit FBR sets in a general order. FBR and its offices pay no fee (150XO).
  • Cancellation starts with a show-cause notice (poor service, broken licence terms, breaking the rules or any law). The licence can be suspended at once if the evidence is strong. The company can reply and then appeal to the Board, whose decision is final (150XN).

The licensing committee (Feb 2026)

  • Chair: Director General (IT & DT). Members: Chief (Revenue Operations), Chief (Systems) who is also secretary, SA to Member (IR-Policy), CIO PRAL, and Senior Manager (Development) PRAL.
  • Its jobs: check new applications, check extra papers needed from old licensees under the new rules, prepare the Request for Proposal (RFP), and examine complaints and recommend cancellation to the Board.

FBR FAQ

This is a plain-language summary of the FBR FAQ page. The FBR page itself says that the Sales Tax Act 1990 and Rules 2006 prevail over the FAQ and that the FAQ cannot be used in court or for legal proceedings.

1.What is an electronic invoice?

A tax invoice made digitally in the set format. A paper invoice that you scan or copy does not count.

2.What is electronic invoicing?

A system that replaces paper invoices and notes with digital ones, so buyers and sellers exchange invoices, debit notes and credit notes in a structured electronic format.

3.Is it mandatory? Who must integrate?

Yes. SRO 709 of 22 Apr 2025 makes it mandatory for corporate and non-corporate registered persons.

4.What is the enforcement date?

The FAQ page says 1 June 2025 (corporate) and 1 July 2025 (non-corporate). The FBR letter of 20 June 2025 later moved this to 1 July and 1 August 2025. Check for newer notices.

5.Who is a licensed integrator?

A company licensed by the Board under Chapter XIV of the Sales Tax Rules, 2006 (section 2(15A)) to connect registered persons to FBR for e-invoicing.

6.Must I connect my POS, ERP or invoicing system through a licensed integrator?

Yes, if FBR has notified you. To ease the burden, rule 150XF makes PRAL a licensed integrator that gives integration free of cost on demand.

7.Where do I find a licensed integrator?

FBR keeps an updated list of valid licensed integrators. See the link at the top of this page.

8.Do I or the integrator pay any fee to FBR?

No. But the integrator may charge you a fee for set-up and integration, not above the limit FBR sets in a sales tax general order.

9.Do I need to visit FBR?

No. Technical help is on the FBR website.

10.How do I download the software?

There is no software to download from FBR. Only the technical documents can be downloaded.

11.Do I need commercial software?

Yes. You install any e-invoicing software you like and connect it to FBR through a licensed integrator.

12.Who can set up the software?

Only a licensed integrator with a valid FBR licence can set it up for real-time sending of your invoices to FBR.

13.What if I integrate after the notified date?

You may ask for an extension under the rules. If you miss the extended deadline or break the Act you face penal action under section 33.

14.Are there penalties for integrators who fail to deliver?

Yes. A licensed integrator who breaks the Act faces penal action under section 33.

15.What are my duties if there is a business interruption?

Examples: goods not sent because of a transport problem, or your internet or the integrator's system down for a day or more. You and the integrator must still follow the Sales Tax Act and Rules. In practice, see the offline-mode rule (150XC) in the section above.

16.What are the penalties if I do not integrate on time?

Registered persons who miss the Board's timelines are liable to penalties in section 33 of the Act.

17.How can an e-invoice be cancelled?

Under section 9, when supply is cancelled, goods are returned, or the nature or value changes, you issue a debit or credit note, within any conditions the Board sets.

18.What if an unregistered buyer will not give CNIC or address?

The FAQ answers with section 23(1)(b): for supplies by a manufacturer or importer to an unregistered distributor, the invoice must carry the buyer's NIC or NTN. It does not give a separate rule for other cases.

19.Where is the complete step by step procedure?

In the Digital Invoicing User Manual (PDF) linked at the top of this page.

20.When must the invoice be issued?

At the time of supply: when you get payment or deliver the goods, whichever is earlier (section 2(44)).

21.Two products have the same HS code but a different sale type. What do I do?

Do not club them. Add them as separate items on the invoice, each with its own unique description, so the tax treatment is right.

22.Do I need e-invoices for export sales too?

You need a digital invoice for every sale that is reported in Annexure C of the sales tax return.