What is E-Invoicing (Digital Invoicing)?
E-invoicing is issuing sales tax invoices electronically through a system connected to the tax authority, which validates each invoice and gives it a unique number.
Updated
Meaning
English
E-invoicing is issuing sales tax invoices electronically through a system connected to the tax authority, which validates each invoice and gives it a unique number.
Roman Urdu
E-invoicing matlab sales tax invoices ko aise system se banana jo tax authority se juda ho, jo har invoice ko check kar ke usay unique number deta hai.
Also called digital invoicing, electronic invoicing, DI, e-invoice.
Example
A registered manufacturer's billing software sends each invoice to FBR's digital invoicing system before printing. FBR returns an invoice number and QR code, which go on the printed invoice to the distributor.
How it works
FBR's digital invoicing applies to sales tax registered persons as notified in the Sales Tax Rules, 2006 and related S.R.O.s, and works alongside the older POS integration for Tier-1 retailers. In practice both work the same way: the billing software sends each invoice, receives a number back, and prints it with a QR code that buyers can verify. Provinces run similar systems for services, such as PRA's e-IMS.
Businesses usually connect through a licensed integrator or approved software. Before going live, check which system applies to you, what fields each invoice needs (buyer details, product codes, tax rates) and how the system handles internet outages.
In Nafaa
Nafaa's optional tax integration reports invoices to FBR POS, PRA, SRB or KPRA, prints the fiscal number and QR on the bill, and lets failed invoices be retried. Nafaa also offers FBR integration setup as a service.
Official source
FBR: Digital invoicing legal provisions and FBR: Point of Sale legal provisions. Rates, thresholds and dates change with Finance Acts and S.R.O.s; check the current position with the authority or a tax adviser.
Related terms
- FBR POS Integration
FBR POS integration is the live link between a retailer's point of sale and the Federal Board of Revenue, so that each sale invoice is reported to FBR and carries an FBR invoice number and QR code.
- Sales Tax Invoice
A sales tax invoice is the invoice a sales tax registered person must issue for a taxable supply, showing the details the Sales Tax Act, 1990 requires, including both parties' registration numbers and the tax charged.
- Sales Tax on Services
Sales tax on services is the tax provinces charge on services such as restaurants, salons, gyms and courier work, collected by PRA, SRB, KPRA and BRA under provincial laws.
