Frequently Asked Questions

FBR Digital Invoicing is the system through which businesses in Pakistan transmit invoice data electronically to the Federal Board of Revenue (FBR), through the Digital Invoicing API run by PRAL (Pakistan Revenue Automation (Pvt.) Ltd). FinSmart builds this into its invoicing workflow: it validates each invoice against FBR reference data, submits it through the PRAL API when it is issued, and stores the FBR invoice number and QR code on the invoice. FinSmart does not guarantee tax compliance or replace the business's responsibility to provide accurate data. The business remains responsible for correct tax treatment and invoice accuracy.

Digital Invoicing is governed by the Sales Tax Act 1990 and Chapter XIV of the Sales Tax Rules 2006, notified through SRO 69(I)/2025. Integration deadlines were phased by taxpayer category under SRO 709(I)/2025 and later FBR extensions. Sales-tax registered manufacturers, importers, distributors, wholesalers, retailers and service providers are brought in as their category is notified. Whether your business must integrate, and by when, depends on your category and the latest FBR notification. Check your IRIS profile (https://iris.fbr.gov.pk) and our FBR Notifications page for the current SROs and circulars.

An FBR Digital Invoice is invoice data submitted electronically to FBR through the PRAL Digital Invoicing API with the required header and item-level details: seller and buyer name, NTN or CNIC, province and address, invoice date, and for each item the HS code, description, sale type, unit of measure, quantity, value excluding sales tax, sales tax and any other applicable tax. FBR returns a validation response. For a valid invoice FBR issues the FBR invoice number (IRN); the QR code printed on the invoice is generated from that number. Both appear on the invoice given to the buyer.

Verification happens in two stages. 1. Pre-submission validation: FinSmart sends the invoice data (buyer registration type, HS codes, units of measure, sale types, tax values) to FBR's validate endpoint and shows any invoice-level or item-level error codes (for example 0027 or 0077) so they can be fixed before submission. 2. Submission: "Submit to FBR" validates again and then posts the invoice; FBR returns the FBR invoice number for a valid invoice or an error response. A successful response is not a substitute for the taxpayer's own review of invoice accuracy and tax treatment. The business remains responsible for compliance.

Step 1 – Register with FBR and hold an active NTN and sales tax registration. Step 2 – Enrol for Digital Invoicing on IRIS (https://iris.fbr.gov.pk); PRAL issues a sandbox token for your business. Step 3 – Enter the sandbox token in FinSmart and log in in sandbox mode. Step 4 – Pass the sandbox scenarios (SN001 to SN028) that apply to your business nature and sector; FinSmart supports all 28. Step 5 – After the eligible scenarios pass, PRAL issues your production token. Step 6 – Enter the production token, log in in production mode and start issuing live invoices. The FinSmart team guides you through IRIS enrolment, scenario testing and go-live.

FinSmart is FBR Digital Invoicing software for Pakistani businesses. It covers invoice creation with FBR's tax fields, validation against FBR reference data (HS codes, units of measure, sale types, SRO schedules), submission to FBR through the PRAL API, and the FBR invoice number and QR code on the invoice PDF. It also includes customers with real-time buyer registration checks, products and categories, payments against invoices, emailing invoices from your own email account, a dashboard with FBR submission status, an FBR Notifications page, an activity log and two-factor authentication. It is used by manufacturers, distributors, wholesalers, importers, exporters and service businesses that must submit invoices to FBR.

Yes, within FBR's limits. Under the FBR Digital Invoicing user manual, a submitted invoice can be edited or cancelled on the IRIS portal within 72 hours of submission or by month end, whichever comes first. Item details (quantity, rate, tax) can be edited once; header details and the FBR invoice number stay fixed. Cumulative edits are capped at 10% of the previous month's sales value. After the window closes, corrections need Commissioner approval. In FinSmart, an invoice that has been submitted in production cannot be edited or deleted; the correction is made on IRIS. Verify the invoice before submitting to keep corrections to a minimum, and check the current FBR user manual for the latest rules.

FinSmart locks an invoice while it is being submitted so it cannot be sent twice. If FBR does not respond in time, the invoice is marked as timed out; it is not retried automatically. Check the IRIS portal to see whether FBR recorded the invoice. If it did, enter the FBR invoice number in FinSmart; if it did not, use "Force Resubmit" to send it again. If FBR returned an error instead, correct the data and submit again. FinSmart also has duplicate-invoice protection, and every FBR request and response is kept in a server-side audit log. If you are unsure, contact our support team with the invoice number.

No. FinSmart provides the FBR tax fields and reference data, but the business decides the tax treatment. What FinSmart does: looks up HS codes, units of measure, sale types, tax rates by sale type and date, and SRO schedules and item serial numbers from FBR reference data; applies the rate you choose to each item; and shows FBR's validation errors. What FinSmart does not do: decide whether a supply is standard-rated (18%), reduced, zero-rated or exempt, or whether further tax, extra tax, FED or withholding applies. Those depend on the Sales Tax Act schedules, the SROs in force and the buyer's status. Check the current schedule or SRO and consult your tax advisor if unsure.

Yes. When you enter a buyer's NTN (7 digits) or CNIC (13 digits), FinSmart checks the registration type in real time through FBR's registration-type service and records the buyer as Registered or Unregistered. This sets the correct buyer type on the invoice; for example, further tax applies to unregistered buyers. FTN is supported for government and withholding-agent buyers, and duplicate NTNs are prevented in the customer list. The check confirms FBR registration status only; it does not confirm that a buyer is legitimate or creditworthy. Carry out your own due diligence as well.

FinSmart can be set up for businesses with more than one branch or location. Each business account has its own customers, products, invoice numbering (with an optional per-customer prefix) and FBR tokens. Discuss your branch structure, who creates invoices at each location and how you want reporting consolidated with our team, and we will recommend the right configuration.

Data is transmitted over HTTPS, both between your browser and FinSmart and between FinSmart and FBR. Logins use secure sessions that are revoked on logout, with two-factor authentication (authenticator app with recovery codes) and hashed passwords. Your FBR sandbox and production tokens are stored for your business and used only on the server; they are never sent to the browser. Every create, update and delete is recorded in an activity log, and every FBR request and response is kept in a server-side audit log. Backups are maintained. For hosting and retention details, see our Data Protection page or contact our team.