Sales Tax & Invoicing

Mandatory Requirements for a Valid Tax Invoice under Sales Tax Act 1990

Under Section 23 of the Sales Tax Act 1990, every registered person making a taxable supply must issue a serialized tax invoice containing specific statutory particulars to allow the buyer to legally claim input tax.

Sales Tax Act 1990 Section 23; Sales Tax Rules 2006 (Rule 22 to 25). Reviewed: September 2026
A valid tax invoice is the cornerstone of the sales tax credit mechanism in Pakistan. An incomplete or non-compliant invoice can result in input tax disallowance under Section 8 and financial penalties under Section 33.

1. Mandatory Particulars Required on a Tax Invoice

Under Section 23(1) of the Sales Tax Act 1990, every tax invoice MUST state:
1. **Supplier Particulars:** Name, business address, and Sales Tax Registration Number (STRN) / NTN of the supplier.
2. **Buyer Particulars:** Name, business address, and STRN / NTN of the buyer. For supplies to unregistered persons, the buyer's 13-digit CNIC or NTN must be recorded.
3. **Sequential Serial Number:** Unique consecutive invoice serial number generated automatically or pre-printed.
4. **Date of Issue:** The exact calendar date on which the taxable supply or invoice was generated.
5. **Description & Quantity of Goods:** Detailed commercial description and quantity/volume of the goods supplied.
6. **Value Exclusive of Tax:** Total commercial price of the goods excluding sales tax.
7. **Rate & Amount of Sales Tax:** The applicable standard or reduced sales tax rate (e.g., 18%) and the exact monetary amount of tax charged.
8. **Value Inclusive of Tax:** The total final payable amount including all applicable sales taxes.

2. Digital Invoicing & FBR POS QR Code Requirements

For Tier-1 retailers and integrated corporate enterprises:
- The invoice must include the **16-digit FBR Invoice Number**.
- The printed receipt must feature the verifiable **FBR QR Code** scannable by consumers via the Tax Asaan mobile app.
- System time, SDC identifier, and digital fiscal signature must be encoded.

3. Buyer CNIC Requirement on Unregistered Sales

Under statutory amendments:
- When selling to an unregistered buyer exceeding PKR 100,000 (tax-exclusive) in a single transaction, capturing the buyer's valid CNIC / NTN is mandatory.
- Sales to ordinary end-consumers for personal household consumption below statutory thresholds are exempted from this requirement.

Related Common Inquiries

No. Under Section 7 and 8 of the Sales Tax Act 1990, input tax credit is strictly inadmissible unless the tax invoice bears the registered buyer's active STRN and appears in the supplier's Annexure-C.
Under Section 24 of the Sales Tax Act 1990, all sales tax invoices, books of accounts, and supporting documents must be preserved for a minimum period of 6 years from the end of the relevant tax period.
Yes. Electronic invoices generated by compliant ERP, POS, and accounting software are fully recognized provided they contain all Section 23 particulars and secure digital audit trails.

Legal & Tax Disclaimer

This guide is prepared for informational purposes based on prevailing statutory provisions in Pakistan. Tax regulations are subject to administrative circulars and Finance Act amendments. For case-specific legal counsel, consult our qualified attorneys.

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