Service providers in ICT directed to adopt electronic invoicing system under new order
The Federal Board of Revenue (FBR) has made Point of Sale (POS) integration with its computerized system mandatory for service providers operating in the Islamabad Capital Territory (ICT), according to a new general order issued on Monday.
The tax authority issued Sales Tax General Order (STGO) No. 05 of 2026 (ICT), directing service providers falling under Table-1 and Table-2 of the ICT (Tax on Services) Ordinance, 2001 to integrate their business operations with the FBR’s computerized system for real-time reporting of services.
FBR sets deadlines for POS integration
The FBR said amendments introduced through the Finance Act 2025 empowered the board to require service providers to connect their hardware and software systems with the tax authority through licensed integrators, including Pakistan Revenue Automation Limited (PRAL).
Under the new order, public limited companies and firms with annual turnover exceeding Rs1 billion must complete registration by May 25, 2026.
Such entities are required to complete system testing by June 5 or June 10 and start issuing electronic invoices by June 15 or June 20, 2026.
Companies with annual turnover below Rs1 billion, as well as individuals and associations of persons with turnover exceeding Rs100 million, have been assigned deadlines ranging between May 30 and June 20, 2026.
Meanwhile, all other registered service providers must complete registration by June 1, testing by June 15 and begin issuing electronic invoices no later than June 25, 2026.
Electronic invoicing aimed at improving tax collection
The FBR clarified that service providers already integrated with the board’s computerized POS system before the latest order would not need to repeat the integration process.
Tax experts said the mandatory POS integration and electronic invoicing framework is expected to improve documentation of the services sector, enhance transparency and strengthen sales tax collection in Islamabad.
The initiative forms part of broader tax administration reforms aimed at increasing digital compliance and reducing undocumented economic activity in Pakistan.