The Federal Board of Revenue (FBR) is set to impose penalties on companies that have failed to integrate with the board’s system for issuing electronic sales tax invoices. The penalty process will begin from January 2026, following the expiration of integration deadlines for various categories of taxpayers.
According to the FBR’s SRO 1852(I)/2025, the deadline for integration of public companies and importers to register for sales tax was extended until October 15, 2025. Other categories, including registered persons not based on turnover, were required to complete registration by December 10, 2025.
Under the SRO, all sales tax-registered entities must complete integration testing of their hardware and software with the FBR’s computerised system through a licensed integrator or PRAL and begin issuing electronic invoices by the specified deadlines. The deadlines for testing and invoice issuance for different categories of taxpayers have already passed.
For companies with a turnover exceeding Rs1 billion, the deadline for registration was October 15, 2025, with testing to be completed by October 25, 2025, and electronic invoices to be issued by November 1, 2025. The same deadlines applied to importers.
Companies with turnover under Rs100 million had until November 15, 2025, for registration, with testing set for November 25, 2025, and electronic invoices to be issued by December 1, 2025. The remaining categories were required to be registered by December 10, 2025, with testing and invoice issuance deadlines falling later in December.
The FBR’s move comes as part of its efforts to modernise the tax system and ensure compliance, with penalties for non-compliance set to be enforced starting next month.
