FBR mandates sales tax invoices for advance payments

The Federal Board of Revenue has introduced sales tax invoice requirements for registered businesses that collect advance payments for supplies. Business Recorder reported that SRO 2063(I)/2026 changes the Sales Tax Rules, 2006, requiring an invoice when each advance instalment is received and tax to be declared for that period.

Each receipt invoice will count as a tax invoice for specified purposes, and additional payments for the same supply must be documented separately and electronically linked. When goods or services are eventually supplied, businesses must issue a final invoice, avoid taxing amounts already accounted for and apply the relevant tax rate to each payment based on its receipt date; adjustments and cancellations are handled under existing provisions.