FBR makes sales tax invoices mandatory on advance payments for supplies

The Federal Board of Revenue has changed the sales-tax rules for registered taxpayers covered by Section 23, requiring them to issue invoices when customers pay in advance for supplies. Profit by Pakistan Today reported that the amendment, notified on November 5 through S.R.O. 2063(I)/2026, requires a separate advance receipt invoice for each full, partial or instalment payment. The tax due on each advance must be reported in the return for the period in which the money is received.

The advance invoice must include the information required under Section 23 and will count as a tax invoice under Sections 7 and 8. When the supply is completed, a final invoice must refer to the earlier receipts, with previously declared tax excluded from the calculation and tax applied only to any unaccounted balance. The rules also set the rate by the date an advance is received, require electronic links among transaction documents, and provide for adjustments when values change, payments are refunded or orders are cancelled.