FBR introduces online invoice verification facility for buyers on official website

The Federal Board of Revenue (FBR) has introduced a new feature on its website that enables buyers to verify invoices or bills issued by businesses and service providers. This initiative, notified through a recent FBR communication, aims to enhance transparency and compliance with tax regulations.

The new facility will allow buyers to confirm if the invoices or bills issued by integrated enterprises have been submitted to FBR's computerised system. This move is part of the FBR's ongoing efforts to streamline the e-invoicing process.

In addition to the verification feature, the FBR has directed that businesses and professionals must issue real-time, verifiable electronic invoices or bills for every taxable supply and service. These invoices will be retained electronically for six years, as per section 174 of the Income Tax Ordinance.

The notification also mandates that debit and credit notes be issued electronically through the integrated system and stored for the same six-year period. For online sales, including those through online marketplaces, invoices will be automatically generated and records will be maintained for six years.

This development is in line with FBR's broader push for businesses to integrate e-invoicing with the income tax system to improve tax compliance and reporting.