FBR gives taxpayers final chance to fix incorrect declarations

Pakistan’s Federal Board of Revenue (FBR) has offered taxpayers a final opportunity to avoid penalties for submitting incorrect tax declarations, while introducing new measures to facilitate corrections in electronic invoicing.

In a circular issued to registered businesses, the FBR outlined a procedure allowing errors in sales tax invoices to be corrected under defined conditions. The move is part of efforts to improve compliance and address operational challenges in the digital invoicing system.

Under the new guidelines, businesses may use one or more integrated systems, subject to approval or notification by the FBR. This flexibility is intended to ease technical constraints faced by companies working with multiple licensed integrators.

The directive, issued through Sales Tax General Order (STGO) No. 01 of 2026, allows taxpayers to cancel, delete or amend an electronic invoice within 72 hours of issuance in cases of genuine error. Changes made within this timeframe can be processed through the FBR’s integrated system.

However, any modification after 72 hours will require prior approval from the relevant Commissioner Inland Revenue, and may be subject to additional conditions.

The FBR said the initiative aims to ensure real-time and transparent reporting of sales tax while facilitating ease of doing business.
The policy builds on earlier regulations introduced through SRO 1413(I)/2025, which made digital invoicing mandatory for all registered taxpayers. Businesses had raised concerns over implementation challenges, particularly in cases involving multiple system integrators.

The latest measures, approved by the Member Inland Revenue (Operations), are seen as an attempt to strike a balance between strict oversight and practical flexibility in tax compliance.