On February 18, 2026, the Federal Board of Revenue (FBR) of Pakistan issued a draft notification proposing to replace Chapter VIIA of the Income Tax Rules, 2002 with a new framework requiring specified sectors to integrate e-invoicing/POS systems with FBR for real-time electronic invoices/bills, including QR codes, digital signatures, record retention, audit access, and a licensing regime for integrators.
Scope
Covered categories include, but are not limited to:
- restaurants;
- hotels/hostels/marriage halls/clubs;
- inter-city road travel;
- courier/cargo; personal care services;
- medical providers (with fee threshold exclusion);
- diagnostics/hospitals;
- gyms/clubs;
- photographers/event managers (with per-event fee threshold exclusion);
- accountants;
- retailers (with chain/mall/electricity bill/size-based tests);
- foreign exchange dealers; and
- private education institutions (with a monthly fee-per-child threshold exclusion).
Requirements for “integrated enterprises”
Notified taxpayers (“integrated enterprises”) must register, install, and integrate e-invoicing hardware/software with FBR’s computerised system, provide outlet/POS details via FBR’s online system, and ensure no supplies are made except through integrated outlets/POS/e-invoice or bill issuing machines.
Technical requirements
POS/e-invoicing systems must:
- support secure transmission of invoice/bill data to FBR and receipt of a unique FBR invoice/bill number,
- generate and print a QR code based on that number,
- create and record digital signatures,
- maintain logs for adjustments/cancellations and system events, and
- perform day/week/month closing routines.
Offline mode and business continuity
Invoices/bills issued during system failure (including internet or power disruption) must be clearly marked as offline mode and uploaded to FBR within 24 hours of restoration.
Licensing of integrators
The draft establishes a licensing framework for entities that integrate taxpayers’ software with FBR, including application documentation requirements, license validity/renewal, technical support duties, fee caps via general order, and cancellation procedures.
PRAL is designated to act as a licensed integrator for these purposes and may provide free-of-cost integration and downloadable software when required.
