Federal Board of Revenue has introduced a new digital feature that allows buyers to verify invoices and bills issued by businesses and service providers, marking another step in the authority’s efforts to strengthen transparency and improve compliance within the tax system. The facility, recently notified through an official FBR communication, is available on the authority’s website and enables buyers to confirm whether invoices issued to them have been successfully transmitted to FBR’s computerized system in real time. The move is aimed at reinforcing trust in electronic documentation while encouraging businesses to comply fully with mandatory e invoicing regulations.
Under the new system, buyers can check if invoices or bills issued by integrated enterprises are properly reported to FBR through the designated electronic framework. This verification process helps ensure that taxable supplies and services are accurately recorded at the point of transaction, reducing the risk of underreporting or undocumented sales. FBR officials view the feature as an important layer of accountability, as it empowers buyers to play a direct role in validating compliance rather than relying solely on post transaction audits. The initiative forms part of FBR’s broader strategy to digitize tax administration and streamline interactions between taxpayers and the revenue authority.
Alongside the launch of invoice verification, FBR has reiterated existing requirements that all businesses and professionals must issue real time, verifiable electronic invoices or bills for every taxable supply of goods or services. These electronic invoices are required to be generated through an integrated system and retained in electronic form for a minimum period of six years, in accordance with section 174 of the Income Tax Ordinance. The same retention requirement applies to all related documentation, ensuring that records remain accessible for audit, reconciliation, and compliance review over the prescribed period. By enforcing standardized electronic storage, FBR aims to reduce disputes over documentation while improving the reliability of tax records.
The notification further clarifies that debit notes and credit notes must also be issued electronically through the integrated e invoicing system and preserved for six years. This requirement applies across sectors and transaction types, including adjustments related to returns, discounts, or corrections. For online sales, particularly those conducted through digital platforms and online marketplaces, the system provides for automatic invoice generation. These invoices will be recorded electronically and retained for the same six year period, ensuring consistency between physical and digital commerce. FBR’s approach seeks to bring online transactions fully within the formal tax net by minimizing manual intervention and reducing opportunities for non compliance.
This development aligns with FBR’s wider push to integrate e invoicing directly with the income tax framework, creating a more connected and data driven tax ecosystem. By linking invoice generation, verification, and record retention, the authority aims to improve the accuracy of tax reporting while simplifying compliance for businesses that adopt integrated systems. The availability of invoice verification for buyers also introduces a transparency mechanism that can discourage informal practices and encourage documentation across supply chains. Over time, FBR expects these measures to support better revenue collection, more effective enforcement, and a gradual shift toward a fully digital tax environment that supports both businesses and regulators through improved visibility and accountability.
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