Online Integration of Business

Ciovernment of Pakistan Revenue Division Ircderal Board of Revenue *:1. + * r! Islamahad. the l8!r' February. 2026. NOTIFICATION (lncome Tax) d8tfyZ026. fbllorving draft of certain aurendrnents in the Income Tax s.n.o.l - The Rules. 1002, which the F'ederal Board of Revenue proposes to rnake in exercise ofthe porvers conferred b1' sub-section (l) of section 237 olthe lncome Tax Ordinance, 2001 (XLIX of 2001). is hereby published for the intbrmation of all persons likelv to be affecred thereb)-, as required by' suh-section (3) of the said section. and notice is hereby given that objections or suggestions thereon, if any, ma1 be sent tbr consideration ofthe Federal Board of Revenue uithin seven days ofpublication ofthe draft in the official Gazette. Any ob.iections or suggestions rvhich ma1' be received tiom an1.' person in respect of the said drati. before the expiry of the atbresaid period. shall be considered bv the Federal Board of Revenrre- In thc afbrcsaitl rules. lbr Chapter VllA. the tirllol'ing shall bc substitutetl, namell-:- CHAPTER VIIA ()NLINE IN'I'EGRATION 0IT I]USINI,SSES 3JA. rtpplicatkrn.- The provisions of this Chapter shall apply to all persons mentioned in column (2) ofSchedule below excluding those specified in column (3). The taxpayers norilied in the Schedule 33B. Obligations and requirements. - (l) belo*. hereinalter referred to as "integmted enterprise" in this Chapter. shall register, install and intesmte his electronic invoicing hardrvare and software with the Board's conrputerized s!'stem in the manner specified by' the Board through an lncorne'far General Order and ensure that.- (a) the intcgrated enterprise through Board's online systern shall provide inlbrmation olhis outlets. points of sale or electronic invoicing tnachines; and (b) no supply shall be made by the integrated entcrprise. excepr through the integrated outlets. point of sale or electronic invoice or bill issuing machines. (2) fhe point of sale or the electronic invoice or bill issuing nrachine shall. - (a) gencrate. rcceive, record, anal1.'ze antl storc invoice data or bill data: (b) issue invr>ices or bills in the prescribed fonnal, create the digital signature and record the digital signature on the invoice or bill: (c) h?nsmit the invoice or bill data to the Board's Oolnpurerized S).stem through secure mcans and reccive the unique FBR invoite number or bill nunrber: (d) encrypl and preserve the reportetl invoice or bill data in an irrevocable and secrrre nranner:

(c) generate the QR C'ode on the base of unique FBR invoice nunttrer ot' bill numher and print thc QR ( \)dc on reccipt: (f) perfbrm closing on close ol tlre da_v. ueek anrl month: and (c) record ever-v adiusnnent. nroditication or cancellation dul;, rnaintaining logs for each activitl'and systcnt events need to he recorded. (3) The elcctronic invoicing soliware or poinl ofsales softrvarc shall be capable ol generating and sending aleft nressages to the Board's computerized slstem in case ()l'an\ malpractice or error or an) inconsistent action noticed in the s1'stenr and keeping a log theretrt. (1) The Board mav rcquire an intcgrated cnterprise to integrate the facilii- ol'debit and credit card machine. QR Codc or anv other mode ol'digital transactiorl available at all the sale points and the salcs through afbresaid rncans shall not be ordinarill' relused. (5) The Board may require an intcgrated enterprise to record transactions on eacll point of sales b-v a CCTV camera and the lecording thercofshall be retained tbr a period t:rf at least one nronth. Such rccordings shall be provided to the Commissioner concerned as and rvhen demanded and for the perioti of time as specilied b;- the Board lirrough an lncotue 1a\ general order. (6) In case t'isupply olexerirpt items. the electronic invoices or bills shall also lre issued through s1.'stenr integrated rvith the Board's Conrputerized System untler these rules. (7) 'Ihe cost lbr inlegration including the cost ofequipnrcnt and electrotric invoicins softrvare or point ol'sales softir,are shall be borne bl the integrated enterprise. (8) 'l'he inlegrated enterprise shall prorninently displal on cach ofthe notified outlets. poinls of'sale or electronic invoicing machines a signboard bearing [rBR's ollicial logo aLug lvith the le)it "lnlegrated rvith FBR" antl also the re-cistration nttnrber of cach eleclrunic invoicing sclftrvar s or point of sales sottlvare veriflable through the Board's veritlcation services. (9) ln case olonline sale including online market place. the inlegrated enterprise shall register such *'ebsite. softrvare and rnobile application $ ith the Board's Contputerised S1'.,stem -l'arito record the auto-electronic invoices or bills as specified bl the Board through an lnconte General Order. (10) The electronic invoice or bill generated under these rules shall corltain the follorving particulars. namely:- (XXXXXX-DDtvTMYYIIHMMSS- (a) unique FBR invoice number or bill number 000r), (b) unique and verifiable QR codc iliinensions: ZXZIiV; (c) unique electronic invoicing o[ point ofsales softwarc registration number; (d) logo ofFBR digital invoicing systetn: (e) name ol'the seller:

(f) address ofthe seller: (g) seller registration nurnber; (h) name of the recipient: (i) address of lhe recipient: 0) recipient registration number; (k) date of issue of invoice or bill: (l) tax periodl (nr) description; (n) quantity: (o) value exc lusive oftax; (p) sales tax rate; (q) amount of sales tax: (r) sales tax withheld at source: (s) extra tax: (r) lilrther tax; (u) lbderal excise dut-v payable in sales ta:i mode: (v) total discount; (w) invoice or bill refbrence number: (x) HS code: () unit ofmeasurenrent; ancl ) lz.) SRO and scrial nurnber applicable: Provided that rhe particular in serial nunrbers th). (i), ti). (s), (t). (u) and (z) may nlrt appl)' to a retailer issuing electronic invoices or bills to general public other than a nranutacturer-cum-retailer or an importef-cultr-retailer. ( I ) The 33C. lssuance of electronic invoice or lrill and record.- integrated entcrprise shall issue a real-time veritiable electronic invoice or bill lbr every taxable supply and service. The invoice or bi[ so issued shall be retained as record lor a period of sir years on electronic media as provirJed under \{rction 174 ofthe Ordinance.

(2) The debit note and credit note shall also be issued electronically through thc integrated system and retained fbr a period of six years as provided in sub-rule ( l). (3) In case crfonlinc sale including online market place. the elcctronic invoiccs or bills shall be issued automaticalll' and the recortl thcreolshall be maintained ibl a peritd of sir years as provided in sub-rule ( I ). 33D. Contlitiorrs for electronic storage.- The elc"ctnrnic documents specified in rulc -13C' shall be stored in such maurtcr that infonnation at the tinre ol oriqinal transnrission of thc docurnent is re-crcated at the timc oldepan[rental audit. 33E. Audit. ( I) The intcgrated enterprise shall provide access to prenrises antl ull -the record spccilied in section I 7;1 Ordinance lbr the purposes trl'sL-ctions I 77 and 2 l4Cl thereo l' to thc Officer ol'lnland Revenuc as autholized b_,- the Commissioner liaving.juristl iction. (2\ The Board may issuc instructions lbr technical autlit. 33F. Exlension in duc date of Integration.- Thc (irmnrissioncr lnland Revenrrc having.iurisdiction may allorv cxtcnsion in tinrc. lbr up to sixty da1,-s in aggregate \\ith llieclr da!s intervals. fol intcgmtion or compliance under this chaptcr: Provided that such integrated enterprise shall continue to issue paper invoices or hills until such time as e\tended b.,.- the Commissioner. 33G. Provisions of Electronic Transactions Ordinance, 2002. the -l'ransactiorrs -Allrecognitionprovisions of Electronic Ordinance. 2002 (Lt ol-2001). relating to the ol' documents. records. information. documents, records. cornrnunication and transaction in electronic forrn. accredilation ol' certitication service providers and for matlerc ancillary thereto^ shall lrr rrrrrs mulundis apply. 'l hc ( I ) 33H. Consequences of non-compliance or contravention.- integrated enterprise $ho is tbund to have tampered with thc slstem or nrade sales in thc rnanner othenvise than as prescribed in this Chapter. or rvlto contravenes any ofthe protisions of this ChapteL, shall be sub.iect to penalty under sectiorr 182 and any restriction under an1' provisions ol the Ordinance or the rules made thereunder. 33I. Responsibilities of the Integratcd enterprises.- I hc integ|ated entelprise shall.- (a) make all electronic invoicing hardrvare and sotlrlare including p.t.vment countcrs comprising point of salc at each outlet. available lbr installation of the sr-stL-ms: (b) be responsible for smooth tirnctioning ofallthe harduare and softrvarc; (c) report to the Board and the concerned Commissioner \rithin twent]'-tbur hours trl' an) opemtional fhilure. damage disruptions or tampering ofthe s)stenr: or (d) report any inoperative electronic invoicing hardrvare and software within twent]- fbur hours lvith reasons along with documenlary e vidence to the Commissione r holding the j urisdiction.

33J. Provision of verification facility by the Board.- The Board shall provide a l'acility on its rvebsite to the bu)er olan integrated enterprise to verit-v- if the invoice or bill issued to him b1, such integrated enterprise has been communicated to the Board's ( omputcrized System. 33K. Internet interruption.- The invoices or bills generated during any period of' tnilurc ofelectronic invoicing sofirvare or point of sales software including disruption caused b\ internet or power tailure shall be clearly identitied as invoices or bills issued in the ollline lnodc antl shall be uploaded rvithin nventy-ltrur hours ofrestoration. 3JL. Functions of the Officer of Inland Revenue. ( l) The Olficer of lnland - through periodic visitsRevenue having iurisdiction. shall nrorritor operation of the s1.'stenr authorizcd in this behalfbl thc Clommissioner. (2) Where an integrated cnterprise does not accounl for salcs rr''itlrout generating an invoicc' of bill countering QR code or [) BR invoice nurnber or bill numbcr, thc Officer of Inland Rcvenuc shall cornpute the taxes on such goods relating to unaccounted tbr invoices or bills. and recover the same under the relevant provisions of law. besides an1 other action including penal action that ma) be taken trnder the Ordinancc or the rules madc thercunder. 33M. Licensing. ( I ) Save as otherwise provided in rule 33H. no person shall carry -out intecration olthe notified taxpa)'ers through softtvare unlcss he has obtained a license rrndel these rules. (2) No licensec under these rules shall maintain or operale system or provide any other scrvice. rvhich is not authorized under these rules. (i) Every electronic invoicing softrvare or point of sales softrvare including paynlent counter whether tixed or porlable of the notified taxpavers r'hich geflerates inloices or bills ofreceipl of pal.ment either in cash or through debit or credit card shall be integrated rvith the Board through the licenced integrator. 3JN. PRAL to act as a licensed integrator.- ( I ) Nd\\ irhstanding the provisions of rules ilP. 33Q. sub-rule (2) of lLrle 33R and iiS, PRAL shall act as licensed integrator firr the purposes of rules 3.iN,I. sub-rule ( l) of rule 33R and 3_3T. (l) PRA[, shall provide free ofcost integration sen,ices to the raxpal.,ers on dernand. (l) PRAL. as and rvhen required bv the Board. shall provide a free of cosr dorvnloadahle elecrronic invoicing soflware or point of sales software on Board's ofJlcial r"-ebsite. 33O. Functions of the licensing committee.- 1l) The Board shall notif1.. a licensint cornmittc'c rvhich shall perform function in accordance u,ith the provisions olrules ilQ. -l3S antl 33V or any other instructions or procedures. issued by,the Board. (l) The Boartl shall notify ct'rnvenor ol'the licensing committee. 33P. Application for grant of license. ( l) An application for grant of license for. -inteqratir)n of'anv taxpa\ers. shall be made in duplicate to thc B(rard. (2) No application Lrnder sub-rule ( I ) shall be considered, unless it is accompanied br.-

(a) a cornprehensive profile ofthe company; (b) a briefabout managerial and technical personnel indicating name, position. qualitication and e.rperience; (c) lotal nunrber ol'currenl emplol ees: (d) docurnents showing relevanl capacity ofthe development and integration with enterprise resource planning s)stems and Pay-ment Processing Systetns: (e) a registration certificate issued by,Pakistan sol vare houses Associariorr or Institute ol' Chartered Accountants of Pakistan: (f) an audited statement ofaccounts for the last three financial years; €) a list of major clientele: (h) incorporation cenificate undcr the Cotnpanies Actl (i) National Tax Number (NTN.1 Certiticate: (,) paid up capital lor the latest financial year is a1 least Rupees ten million or above: (k) registration rvith Sales Tax Department ifretluired: (t) Computerized National ldentit;" Cards of dircc&rls of the incorporated compan)': (m) undert"king that the company has never been blacklisted b1, anr' Government or Provincial department or organization and lras not been involved in conlirmed cases oi fiscal fiaud: (n) list ot'projects erecuted in the last three yeats: and (o) any other docurnents required through instrLrctions orders issued b1' the Board 33Q. Procedure for grant of licencc. reoeipt ofapplication for grant ot' -(l)Onlicence, thc Iicensing committee shall scrutinize the documents provided tnd it shall evaiLuttc the cligiLrilitl ofthe applicant uithin seven dals olreceipt ofapplication. (2) The licensing conrnitlec mal also carry oul visits, if necessar)', fbr phlsical inspection to ascertain thc eligibilitl. ofthe applicant tbr licensing undr'r these rules. (3) The licensing cotnmittee shall recommend or reject an application lithin fitiec n da1's of date of subnrission of the application. speciliing reasorts fbr recommentlation or rejection ofthe application untler tlrese rules. (4) Thc licensing committee shall rnake recommendatilrns to the Board lbr urant rrt' licenses in respect Dl'the companies who meet the criteria under these rules.

(5) The licensing cornrliftee shall grant the license to tlre reconlnrended applicant u'ith the prior approval from the Board. 33R. Rights granted to the licensee. ( I ) A licensee shall have the right to install. -contigure, integrate, operate and maintain the electronic invoicing softrvare or poinl of sales soliuarc on real time basis in accordance u ith conditions ofthe licence issued to him. (l) The license granted under these rules shall be subject to provisions tll'the Ordinance and shall be valid for tive years from the date of issuance. (:l) The liccnse granted under thcse rtrlcs shall bc non transllrable and shall not bc allowed to be uscd bv anr sub-conlractor J3S. Rene*'al of licensc. ( I ) The application lbr renerval of license shall be madettr thc Board threc months betirre its-expiq. (2) -Ihe licensing commiflee shall cvaluate the application and maks recornmendati olls to thc lJoard for the renerval o{'licence. (-1) The licensee shall be required to comply with all the provisions ofthese rules tbr the renewal period. 33T. Technical support. (l) 'l'he licensee shall be responsible lbr postdeplo;-ment nrainlenance ol' tl'rc system,- i ncluding.- (a) setling up and nraintenance ofall intbrmation technology equipment connected to the electronic invoicing hardrvare and soltrvare: and (b) is authorized to.- ( i) upgrade the system hardware and softrvare; (ii) fix all bugs: ( iii) immediatell, respond to troubleshoot an) post deplo_v-,rrent problems lor unintenupted lvorking ofthe slstem: and (iv) the licensee shall be responsible tbr safe and secure capture ol'real-time transmission ofsales data frorn the electrclnic invoicing sothvare or point ofsales software to FBR database at all times. 33U. Supervision of the Sy'stem: The Board shall notiry a ream responsible for orcrall supervision ol the sl,stem and the steps to be taken to address problems encountered during operation ofthe systems. J3V. Proced ure for cancellation or termination of license. ---( I ) The teanr notilied b1' the Board as a result of supervision of the syslem or on receipt ol'a report fi.om any of the Conrtrtissioner lnland Revenue. or on a valid complaint, shall initiate process fbr cancellation ofthe license bl serv-ing a notice upon the licensee immediately or rvithin tifteen days ofreceipt of the repon of the Commissioner lnland Revenue or a valid cornplaint. ao shorv cause as to rvhy' thc license issued under these rules, may not be cancelled or terminated if it has a reason to hc'lier,e that the licerrsee has, (a) f'ailed to provide specified serviccs ro the sarist'action oflthe Board: (h) contravencd an1' olthe conditions of the license; (c) contravened anY provision ofthese rules or the Ordinance: or

(d) violated an).applicable larv while being a licensee under these rules: Provided that ilon the basis olmaterial evidence. rhere exists prima facie sutlicienr grounds against the Iicensee. the licensing ittee ma1. suspend the ricense to saf'eguarJ .conrm public finances and to prevent any. other ser.ious damage. . (2) The licensing committee ma1,. aftcr giving the licensee adequate opporlrnitv or being heard and after examination of the recortl, cincet or terrninare the license'issuecl under these rules. (3) In case of cancellation of license under fhese rures, the afrected perstrn or shall have the right to tlle representation agaiust fhe order ol'thc licensing c.onrnrittec:ompan-v belbrc thc B,rard (4) 'fhe B.ard shalr decide the representation alie'giving proper opportunirl of being heard and the decision ol'the Board shall be Ilnal. The ricensee shal charge r-ee for configuration antl. l3w. Tee and Charges. o) -integration of electronic invoicing softrvare or point ol salcs softnare- riom the integrated enterprise not above the threshold as may be specificd by the Board thtough an incorne tax general order. (2) No tbe shall he payable by the Board and any.ofits tleld fonnations. 33X. Establishment of Inland Revenue Enforccment Netlr.ork_ (I) 1-he Boanl shall establish Inland Revenue enforcement nelrork *'hich shall be responsible lcrr conrbating evasion and leakage oftaries payable on goods and services by way olenforcement units of thi concemed lield formations. 33Y, Functioning of lnland Reyenue Enforcenrent Nct*.ork.- To check antl verilr any of the eventualitics. the enfbrcenrent squads of lnland Revenue shall petr.ol the premises ofthe integrated enterprises and verifi rvhether all the electrgnic invoicing softrvare or point of sales software are integrated and invoices or bills are being repofted to FBR in real- tirne and shall report such invoices ol bills generated tiom non-integrated electronic invtricing softrvare or point of sales soll.rvare to commissioner lnland Revenue. Such Commissioner. after receipt of the report liotn the enforcernent network, shall recover the tax in accurdance u'ith the prcrvisions of the Ordinance. Schedule fsee rule 33A] I 2 J S. No. Descri tio n Exclusion if I Restaurants Where- the facility of air conditioning is not installed. 2 I"lostels. motels. guest houses. Where- marriage halls. Marquees. clubs the facility of air conditioning is including race clubs. not installed. J Inter-city travel by road. Where- (a) the ta(payer is only providing non air conditioned travel service: or

(b) travel service maintaining a fleet of less than five vehicles. -t Courier services and cargo services. 5 Services provided for personal care Where the facility of air conditioning is by beauty parlours. clinics and not installed. slimming c lin ics, massage centres. pedicure centres. 6 All medical service providers Where the fee charges are less than Rs. including dentists. physiotherapists, 500/- plastic surgeons. hair implant surgeons. and veterinaO doctors. 7 Pathological laboratories. medical diagnostic laboratories including X- Rays, CT Scan. M.R lmaging etc. 8. Private hospitals or medical care centers providing medical consultation, hospitalization or other ancillary services. 9. Health clubs, gyms physical fitness centres. swimming pools and multipurpose clubs such as Lahore gymkhana. Islamabad club, Chenab Club, Karachi gymkhana. Royal Palm Lahore, Polo club etc. operated by any civilian/ non-civilian administration. 10. Photographers, videographers and Where the fee charges are less than Rs. event managers. 50.000 per event. lt. Accountants defined as - (a) a Chartered Accountant within the meaning of the Chartered Accountants Ordinance. l96l (X of l96l)t or (b) a Cost and Management Accountant within the meaning of the Cost and Management Accountants Act. 1966 (XIV ofl 1966) ll. Retailers including manufacturer- A retailer who does not fall in any ofthe cum-retailer. wholesaler-cum- following categories. namely:-- retai ler. i mporter-cum-retai ler or (a) operating as a unit ofnational or such other person who combines the intemational chain ol stores; activity ofretail sale with another (b) operating in an air-conditioned business activity. shopping mall, plaza or center. excluding kiosks; (c) whose cumulative electricity bill during the immediately preceding twelve consecutive months exceeds rupees twelve hundred thousand:

(d) awholesaler-cum-retailer.engaged in bulk consumer goods on rvholesale basis Io retailers as *,ell as on retail basis to the general body ofconsumers; or (e) whose shop measures one thousand square feet in area or more. t3. Foreign Exchange Dealers/ Exchange Companies. '11. Private schools. colleges. Where the fee per child is less than Rs. universities, professional | .000 per rnonth." institute/vocational training centers. I l(23)s(rrPy202s] n (Muham Qurcshi) Secretar) (Rules & SROs)