Islamabad, January 8, 2026 – The Federal Board of Revenue (FBR) has initiated enforcement action against companies that failed to integrate their systems for issuing electronic sales tax invoices, following the expiry of the mandatory deadline.
According to sources, the penalization process for non-compliant entities will formally begin in January 2026. The move comes after the lapse of extended deadlines granted to various categories of taxpayers under SRO 1852(I)/2025.
Under the notification, public companies and importers were required to complete sales tax registration by October 15, 2025. System testing for these entities was scheduled for October 25, 2025, while the issuance of electronic invoices was made mandatory from November 1, 2025.
Companies with declared annual turnover exceeding Rs1 billion were also subject to the same deadlines. Importers, likewise, were required to issue electronic sales tax invoices from November 1, 2025, after completing system testing.
For companies with turnover not exceeding Rs100 million during the preceding 12 months, the registration deadline was November 15, 2025. These entities were required to complete system testing by November 25, 2025, with mandatory e-invoice issuance starting December 1, 2025.
Other categories of registered persons were given time until December 10, 2025, to complete registration. Their system testing deadline was December 25, 2025, while issuance of electronic invoices became mandatory from December 31, 2025.
The FBR has directed that all sales tax registered persons must integrate their hardware and software with the Board’s computerized system through a licensed integrator or PRAL. Failure to comply will now attract strict penalties, as the government intensifies efforts to curb tax evasion and enhance digital monitoring of sales transactions.