What is Digital Invoicing?
FBR Digital Invoicing is an electronic system where businesses generate invoices using an FBR-integrated software. The system automatically prepares the invoice in the required JSON schema and submits it to the FBR IRIS Digital Invoicing API. Once submitted, FBR verifies the invoice and returns a unique IRN (Invoice Reference Number).
After receiving the IRN, the software generates a QR code based on the IRN, invoice number, NTN, and other verification data so that the invoice can be authenticated by tax authorities or buyers.
Important Note: FBR does not return a QR code. The QR is generated by the software itself after receiving the IRN.
Why Has FBR Introduced Digital Invoicing?
FBR introduced digital invoicing to enhance tax transparency, reduce fraud, and ensure real-time reporting. The system also helps businesses avoid manual errors and simplifies the audit and compliance process. It is part of Pakistan’s long-term digital tax transformation roadmap.
Who Must Use FBR Digital Invoicing?
As of 2025, the following categories are required to issue e-invoices through FBR-approved digital invoicing systems:
- Tier-1 Retailers (large retailers meeting FBR criteria)
- Manufacturers and industrial setups
- Importers (commercial importers dealing with supplies)
- Wholesalers and Distributors
- Businesses registered for Sales Tax (specific sectors notified by FBR)
- Large-scale suppliers involved in inter-business transactions
FBR continues to expand the list, and additional industries may be included in the upcoming phases. Keeping your business ready is crucial to avoiding penalties.
How FBR Digital Invoicing Works (Step-by-Step)
Although the backend process is technical, the overall workflow is simple for the user:
- Create Invoice → Add customer, items, tax rate, and payment details.
- System Validates Data according to FBR’s JSON schema.
- Invoice Payload is Submitted to FBR IRIS using the Digital Invoicing API via HTTPS/CURL.
- FBR Verifies & Returns IRN (Invoice Reference Number).
- Software Generates QR Code using IRN + invoice information.
- Invoice Is Finalized → PDF is generated with IRN, QR, and verification link.
- Buyer Can Verify the invoice authenticity using the QR or verification link.
Benefits of FBR Digital Invoicing for Businesses
Digital invoicing provides multiple advantages beyond just compliance:
- Avoids penalties & notices by ensuring real-time FBR reporting.
- No manual IRIS entries — reduces human error and saves time.
- Accurate tax calculation due to automated rules.
- Instant invoice approval through IRN issuance.
- Better audit readiness with structured and validated data.
- Professional PDF invoices containing IRN and software-generated QR.
- Improves credibility with customers due to verifiable documentation.
NANU submits your invoices to FBR in under 30 seconds. QR codes are auto-generated, PDFs are created instantly, and real-time error responses from FBR are shown immediately. No technical knowledge is required — simply create your invoice, and NANU handles the FBR compliance automatically.
Common Errors in FBR Digital Invoicing
Some businesses face the following issues while integrating with FBR:
- Incorrect JSON structure
- Missing mandatory fields (e.g., tax amount, buyer NTN)
- Invalid username/password for FBR gateway
- Incorrect tax type codes
- Slow response from FBR production servers
NANU handles these errors automatically by showing clear user-friendly messages and guiding you to correct them.
Why You Should Switch to a Modern Digital Invoicing System
As FBR continues to expand its digital landscape, businesses that adopt compliant software early enjoy smoother operations, reduced compliance burden, and stronger financial transparency. Digital invoicing is not just a requirement — it’s a long-term investment in reliability and professionalism.
Next Steps for Businesses
If you are ready to transition from manual or Excel-based invoicing to a fully automated and FBR-compliant platform, consider exploring:
You can also request a live demo to understand the complete workflow. Our support team assists you with setup, training, and integration.
Frequently Asked Questions
Does FBR return a QR code?
No. FBR only returns the IRN (Invoice Reference Number). The QR code is generated by the invoicing software based on the IRN and invoice details.
Can I submit invoices manually to IRIS?
No. Digital invoicing requires API-based submission using approved software. Manual entry is not permitted for digital invoicing IRN generation.
Will FBR accept invoices submitted through NANU?
Yes. NANU generates the correct JSON structure and communicates directly with FBR’s secure digital invoicing endpoint. Every invoice is validated before submission to reduce errors.
Do I need technical skills to use digital invoicing?
Not at all. NANU is built for non-technical users. Our team also provides onboarding, AnyDesk support, and complete training.