In Pakistan, a sales tax invoice is defined by the Sales Tax Act, 1990, and the Federal Board of Revenue (FBR) sets out exactly what it must contain. Whether you sell goods, provide services, or freelance for clients abroad, using the right invoice format keeps you compliant and lets your registered buyers claim input tax.
This guide explains what an FBR sales tax invoice must include, how federal and provincial sales tax differ, what changes if you are not registered, and how to produce a correct invoice for free.
What an FBR sales tax invoice must contain
Under section 23 of the Sales Tax Act, a registered person supplying taxable goods must issue a serially numbered invoice that shows:
- Name, address and registration number of the supplier (your STRN, and usually your NTN)
- Name, address and registration number of the recipient
- Date of issue and a serial number
- Description, quantity and unit of the goods or services
- Value exclusive of tax
- Amount of sales tax charged
- Value inclusive of tax
Only one tax invoice may be issued for a taxable supply. If you are registered for provincial sales tax on services, the relevant revenue authority (SRB, PRA, KPRA or BRA) has its own near-identical invoice requirements.
Federal vs provincial sales tax
Pakistan splits sales tax by what you sell:
- Goods are taxed federally by FBR. The standard rate is 18%, with reduced rates and exemptions for specific items listed in the Act’s schedules.
- Services are taxed by the province where the service is rendered — Sindh (SRB), Punjab (PRA), Khyber Pakhtunkhwa (KPRA), Balochistan (BRA), and FBR for the Islamabad Capital Territory. Provincial service rates commonly range from about 13% to 16%.
This means a services business may need registration with a provincial authority rather than, or in addition to, FBR. Check which authority covers your activity and location.
Supplies to unregistered buyers
When a registered supplier sells to a person who is not registered for sales tax, an additional “further tax” — currently 3% — usually applies on top of the standard rate, and the buyer’s identity details (CNIC or NTN) may need to be recorded on the invoice above a threshold value. Build these fields into your template if you sell to businesses that are not registered.
If you are not registered for sales tax
If your turnover is below the registration threshold, or you only export services, you are not issuing a sales tax invoice. A plain commercial invoice is fine — your business name and address, the client’s details, an invoice number, the date, a description of the work, and the total. You still need this for your income tax records and, for freelancers, for your bank.
Income tax is separate from sales tax. Most freelancers and small businesses still file an annual income tax return with FBR and hold an NTN even when they are not sales-tax registered.
Digital invoicing and FBR integration
FBR has been extending electronic invoicing: retailers integrate their point-of-sale systems with FBR, and notified sectors must issue invoices through FBR’s digital invoicing system with a verifiable QR code and an FBR invoice number. If your business is not in a notified category, you issue standard invoices — but watch for notifications that add your sector.
Invoicing freelance and export clients
Exports of goods are zero-rated. Export of IT and IT-enabled services is treated favourably too — these earnings are commonly exempt from sales tax and taxed at a low final income-tax rate when the money arrives through normal banking channels, and many freelancers register with the Pakistan Software Export Board (PSEB). In practice:
- Invoice the overseas client in the agreed currency, usually USD
- Show your name and address, the client’s details, a number and date, a clear description, and the total
- Receive payment into a bank account or a permitted channel so you hold a Proceeds Realisation Certificate or bank credit advice as proof
Create a Pakistan invoice for free
You do not need paid software. With Invoicey’s free invoice generator you can:
- Add your name, address and STRN/NTN, and the client’s registration details
- Enter line items with quantity, unit and rate, showing value exclusive of tax
- Apply an 18% federal rate, a provincial services rate, or leave tax off for unregistered or export invoices
- Set a serial invoice number, issue date and due date
- Download a professional PDF and send it
It runs in the browser, creating and downloading invoices is free, and you can switch to USD for foreign clients. When you want saved clients, consistent numbering, reminders and payment tracking, the same tool scales up.
Shipping goods across borders? Use the commercial invoice generator. Sending a priced proposal first? Use the free quote generator. Need sequential document numbers? Try the invoice number generator.
Invoicing tools to try next
These free Invoicey tools support the same workflow, from first invoice to repeat billing:
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