Karachi, January 11, 2024 – The Federal Board of Revenue (FBR) announced on Thursday the mandatory issuance of digital sales tax invoices for sellers dealing in fast-moving consumer goods (FMCGs).
The development comes with the issuance of SRO 28(I)/2024 by the FBR, which outlines the requirements and entities falling under the purview of this directive.
According to the notification, digital sales tax invoices are now obligatory for the following categories:
1. All importers and manufacturers of fast-moving consumer goods.
2. All wholesalers, including dealers, and distributors of fast-moving consumer goods.
3. All wholesaler-cum-retailers engaged in the bulk import and supply of fast-moving consumer goods on a wholesale basis to retailers.
The FBR clarified that the notification shall come into effect starting February 1, 2024, emphasizing the urgency and importance of compliance within the specified timeline. Registered entities falling under the aforementioned categories may, under justifiable circumstances, apply to the Commissioner Inland Revenue with jurisdiction for an extension in time for compliance.
The notification further defines “fast-moving consumer goods” as consumer goods supplied in retail marketing according to the daily demand of a consumer, excluding durable goods. This distinction aims to provide clarity and specificity to the scope of goods covered under the mandatory digital sales tax invoice requirement.
The move towards digitization of tax invoices is seen as a progressive step by the FBR to modernize and streamline tax administration in the country. Digital invoices not only reduce the likelihood of manual errors but also contribute to greater efficiency and accuracy in the tax collection process. Additionally, the electronic trail created by digital invoices facilitates easier auditing and monitoring of transactions.
This development is expected to have a significant impact on businesses involved in the FMCG sector, as they adapt to the new requirement. Implementation of digital sales tax invoices is likely to bring about a paradigm shift in record-keeping practices, encouraging businesses to embrace technology for compliance purposes.
As businesses prepare for the upcoming change, industry stakeholders are urged to familiarize themselves with the new requirements and ensure a seamless transition to the digital invoicing system. The FBR’s commitment to ensuring compliance and transparency is evident in this latest directive, signaling a broader push towards a more technologically advanced and accountable tax ecosystem in Pakistan.
